Well they are more expensive than regular DVD's. And most people wont see what the big deal is really.
To see the benefit in Blu ray you need a lot more things right in comparison to the boost in quality DVD had over VHS.
First you need an HD TV.
Not only do you need an HD TV but you need to have an HD TV that is the right size for the room you are watching it in. If you sit too close to it you lose all the benefit of having an HD TV in the first place. And if you sit close enough it even looks worse than SD.
Second you need a blu ray movie that is actually a high quality encode. Taken from a high quality print. If you stick to new movies you'll mostly be alright. But catalogue titles vary a in quality alot. You really have to do your research before buying a blu ray movie. The chance of buying a dud with a crappy encode from a bad quality print is really high.
Third you need to know how to set up your TV and player to get the best out of it.
A DVD player you would just hook up to your old TV. Buy (mostly) any dvd and you'd see a huge difference over VHS.
Blu ray right now is in no way capable of competing with that. Not when it comes to the average consumer.
When everything fall into place DVD cant compete with Blu ray on audio and Visual quality. Unfortunately it takes a lot of steps to get there. So I see DVD having the biggest market share for a long time.
I hope Blu ray lasts though. there is no way I'm going to be satisfied with watching so called HD downloads that are so compressed and with bit-rates so low I might as well watch an up-scaled DVD.
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