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I dunno, "downloadable content" sounds great, but is really just a synonym for "rental" right now for the studios. If someone ever makes a DRM that doesn't somehow rely on a third party to always authenticate it for the next 30 years, then perhaps it might look more interesting.
Right now, I think it's all about price really. I have a blu-ray player, but simply have stopped buying movies like I used to on DVD. I don't buy DVD's because they are not high-def, and I rarely buy blu-rays because it's ridiculous they are pricing them at $15 more than the DVD in most cases. Once Blu-ray gets down to the sub-$20, and sub-$15 price range, I'd be picking up a lot more content. $30 on a movie is just a bit nuts though.
Get the price of content down to compete directly with DVD, and get the price of lower quality players into the sub-$100 range and I think you could replace DVD. The studios don't seem to really want this though - they saw it as a way to increase prices 25-50% on movies.
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