Blu-Ray and HD is booming here in the UK, so your somewhat sweeping generalisation about Blu-Ray being irrelevant outside the USA is wide of the mark.
On the right size of screen, 42" and over, Blu-Ray looks immense in 1080p with the True Cinema 24fps technology in newer BD players. Of course the sticking point for Blu-Ray, as you rightly pointed out, is the price compared to DVD, especially with Toshiba's new upscaling range of DVD players and matching displays that take upscaling to a whole new level.
Blu-Ray needs to worry about DVD before it worries about Digital Distribution. Those behind Blu-Ray have become somewhat deluded by the defeat of HD-DVD, a format which in fairness was the superior brand until the major studios (like WB) signed multi million dollar deals to go Blu-Ray only. HD-DVD was defeated by political decisions based on money from the Blu-Ray group, not the quality of the technology on offer, but Blu-Ray will never be the next DVD in my opinion.
Although in terms of being "economically viable", here in the UK you can buy an entry level BD player with 24fps True Cinema, Ethernet port, and 5 top movies (Batman Begins and Iron-Man are two of them off the top of my head) in Blockbuster for just £179.99. Ok, it's not an Asda (Walmart) £15 DVD player, but it's still a massive drop in price for Blu-Ray compared to 18 months or so ago.
Blu-Ray and HD booming over here..??
really?
I must have missed that memo..
HD is growing due to the recent Sky deal. A good friend is an installer and he said that Sky HD demand is insane!
but BluRay? not anywhere round here. Go to any high street shop and ask them what demand is like. They only sell on specials and deals.
Fundamentally people are getting more used to disposable media.
Steve Jobs had it right when he said that most people watch most movies only once. Thats true..unless its a classic. Thats why it makes more sense to rent, especially given the ridiculously high price of BRD.
HD can now be had via download and streaming from places like Sky, Freesat, BTVision, Xbox Live and even PSN. Apple TV and iTunes also offer some content.
Having BRD is just having another box and paying ridiculous prices. With more and more content providers trying to go the download route its obselescence is surely just a matter of time.?
PS3 sales and BRD sales tell their own story, despite the increasingly desperate spin Sony try to put on it.
HDDVD would have been a better bet for consumers and the providers but SONY's money and the publishers greed got in the way.
They wanted the maximum DRM and region locking and the cash from SONY obviously didn't hurt.
HDDVD at mass adoption rates would now be at £50 a player with media prices comparable to DVD.
The industry has forced this on themselves and all they have done is speeded up the march to digital downloads.