Relevance of Blu-ray up in the air
 

Following the recent revelation by Toshiba that it will no longer make any HD DVD products, the death knell of its next-generation, high-definition DVD standard has been sounded – and rival Blu-ray's victory assured. However, after years of a standards war, the major question for Sony and the Blu-ray camp is whether a physical format for HD still has any relevance to consumers in this era of Internet-delivered movies and video on demand, according to research firm iSuppli.

http://www.digitimes.com/news/a20080225PR201.html

as long as the download services don't offer TRUE HD (1080P), there will be a market

even if they offer 1080p, what ISP in .Be can actually support this? we all have limits to download 2 HD movies/month then

I think iSuppli missed the forest through the trees... high definition media sales combined are somewhere under 5% of the total standard DVD sales... So there is still plenty of demand, and plenty of market for discrete media.

The worldwide DVD market generated somewhere near $100 billion in media/player sales a few years ago, judging by a quick google.