While Blu-ray may have won the battle against HD-DVD, its certainly having a hard time against its new competitors. The abundance of quality programming on television and those pesky DVRs to record it and future bandwidth improvements will make digital copy and downloads much more eye appealing to consumers.
Plus you also have standard DVD to deal with. %60 of consumers are perfectly happy with standard DVD. %30 have invested in up-conversion DVD players. Blu-ray has a long hard road to go down, that just may not lead to anything.