[M]any eyes will be on Blu-ray, which for the first time has the floor largely to itself as the heir apparent to the DVD. Over the last decade, DVD players and discs have generated tens of billions of dollars for Hollywood and the consumer electronics industry, so the pressure for a blockbuster sequel is high.
This year will be crucial for the new format. Heavy holiday discounting and the natural decline in electronics prices over time have pushed prices for some Blu-ray players under $200, a drop of well more than half in the last few years — and into the realm of affordability for many. At the same time, Blu-ray’s backers, including Sony and the Walt Disney Company, face a growing chorus of skeptics that says the window for a high-definition disc format may be closing fast.
One reason is that discs of all kinds may become obsolete as a new wave of digital media services starts to flow into the living room. […]