Blu-ray DVD markets in both the US and Europe continue to perform strongly now that the industry has a single standard to focus on. 

By 2012, between 40% and 50% of consumer expenditure on video discs will be allocated to Blu-ray, according to a report from market analyst Futuresource.

Market predicts suggest that close to 45 million Blu-ray discs will be sold in the US this year. This is a four-fold increase on last year.

Uptake of the high definition DVDs is lower in Europe, but the UK Blu-ray disc market is growing.

“We expect 2% of unit sales in the lead markets of the UK and France to be on BD this year and this is likely to hit 5-6% next year,” said Mai Hoang, a lead analyst in the Futuresource Home Video team.

A key factor in the sales growth will be DVD prices. “All eyes are on Warner’s initiative to cut catalogue prices,” said Hoang. “Other studios and the retailers are going to be watching consumer reaction to this very carefully.”

According to Jack Wetherill, who focuses on the hardware business at Futuresource, the cost of a Blu-ray player in the US could fall below $250 by the end of this year.

"In the UK, player prices will fall to around £149 and there may be one or two companies trying to better that,” said Wetherill.