11.17.2008 — Taking a glass half-full view of the home video market, Hollywood studio executives are optimistic that Blu-ray sales will be stimulated by HD-hungry consumers this holiday season.

According to the executives, who gathered at the Digital Entertainment Group (DEG) consortium event in Los Angeles, as many as 10.5 million homes will have the capability to play Blu-ray discs by the end of the year (via the Associated Press).

While these numbers are slightly down from earlier adoption estimates, the executives maintain that, despite the current economic climate, there are factors developing that will drive sales over the next few months.

"The only dark cloud is the economy," stated David Bishop, president of Sony Pictures Home entertainment, during the DEG event.

Bishop added that one of the major drivers of the adoption will be Sony's Playstation 3, which he says is still selling well.

The home video market is expecting that the increased sales of Blu-ray media will offset the declining sales of traditional DVDs, which are 6 percent this year.

Bob Chapek, president of Walt Disney Studios Home Entertainment Worldwide, noted that entry-level consumers that do not own HDTVs are not expected to contribute to Blu-ray sales, but their interest in the format cannot be overlooked.

"It's only logical to expect there'd be some economic impact," Chapek said. "We've been pleasantly surprised so far."

One of the biggest reasons for the DEG's optimism may be the results of a white paper study (pdf) it just released that says consumers are excited about Blu-ray.

The group's "HDTV Owners: The Prospects for High Definition Media" study polled 1,100 American, 500 British and 500 Japanese consumers and found that a strong majority of those asked were aware of Blu-ray, downloads and streaming media. According to the report, the consumers' preference was Blu-ray.

"The results of this global study clearly show that HDTV owners are enthusiastic about high-definition content and are familiar with a variety of HD delivery systems," says Amy Jo Smith, executive director of DEG.

Some of the highlights of the study include:

• Ninety-six percent of Blu-ray users were also familiar with downloads and media streaming
• HDTV owners prefer Blu-ray by a 10-to-1 margin
• Nearly 70 percent of those asked cite the fact that Blu-ray provides a physical form of media that you can keep as a key factor that help them to decide to buy a Blu-ray product