Now it seems that everyone is accepting that a costly format war is coming, which is why two major movie studios have already decided to use both formats. Hollywood is seeing DVD sales slow down and since major movie studios make the majority of profits from home video sales, they are very eager to start releasing high definition movies. A format war however will most likely set back demand for high definition material by a few years.
Disney and Twentieth Century Fox applauded the announcement by Warner saying that strengthening Blu-Ray's advantage could avoid the costly competition between two formats. "The continued dramatic momentum toward Blu-ray makes us more optimistic than ever that a format war can be avoided," said Bob Chapek, president of Buena Vista Home Entertainment.
Source:
MercuryNews.com