A lot of early adopters on other avforums are nearly one in saying after watching a high def film on their HDTV, they have lost the same interest they had with watching SD DVDs. In fact, they watch their HD DVDs and Blu Rays on their 42" ++ HDTVs or PJs and watch SD DVDs on a smaller 32" or earlier HDTV and others on CRT-based TVs. (They're often moneyed enough to own many HDTVs.
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They will still keep their SD DVD collection (though a few have also started disposing) and slowly double dip into HD as the titles they want appear. Not all SD DVDs will be replaced, as most early adopters also had some regrets having titles that sit on their shelves having been viewed only once. For sure animated films would be last on their list as there's really not much detail in most if not all animated films that will benefit from HD treatment. I mean, there are no freckles in Aladin's face or strands in Simba's mane to be revealed any better on HD. Perhaps some computer animated films like Final Fantasy or Monster's Inc with better detailing might. And ofcourse the fact the kids wouldn't really notice the difference.
Many are bemoaing the dearth of really good titles on HD. But HD is still in its infancy and will have a long way to go before it starts to become THE video standard for HT. And while it is true that many homes still have analog TVs that would not benefit from HD players, the uptake of HDTVs is gaining momentum. There are now more than 1M HDTVs in Britain and more than twice that in the US. (Ofcourse that's really nothing compared to the total TV owning household in these countires.) With the mandatory shift to digital TVs, expect the trend to accelerate. The eventual dominance of HDTVs in the common household would have a lot to do with HD players going mainstream. Now whether that is HD DVD or Blu ray is still a toss up. HD DVD is ahead in the US and Britain (and HD DVD hasn't even launched in Europe). But Blu ray enjoys substantial lead in Japan, about 80% of the market. Though I wouldn't consider Japan a harbringer of video format world trend if I go by the betamax and umd dominance there.
If not mistaken, VHS is still around. Unless and until studios make a pronouncement that they will no longer support DVD, DVD would still enjoy a life expectancy over the long term. I don't see such pronouncements forthcoming considering that DVD's enourmous sales is still the bread and butter of many studios, apart from movies. OTH, sales of BD and HD DVD titles are so miniscule compared to DVD sales that they may just merit a footnote on the studios' income statements at this time and in the next 2 years or so.