j6p walks into Blockbuster, only sees Blu-ray in the store. Goes to his local B&M store and finds out a Blu-ray player is still way to expensive for him to simply buy so he can rent these movies. So not only does he not buy the $500-$1000 player, but he doesn't rent any Blu-ray movies.
And HOW is this good for Blockbuster again? Cuz I hate to tell you, most people are not running for a BD player simply because of this.
1) for every few that fit your scenario one will buy.
poorer Joe: "still can't afford it"
richer John: "I can, let's go for it"
2) there are already over 1M PS3s now, for many, it will be easier to rent BD
Joe :"Cool I cantry the BD movie now"
3) some might even change to BB instead of the store the rental place they use nowthat has only DVD.
John: "Joe come over, we can play Y on the PS3 and then watch X on BD"
Joe: "when did you get X"
John: "Rented it"
Joe: "Ma, you aare lucky, maybe I should change places"
4) it makes it harder for the store to sell HD DVD players
Joe: "still can't afford it"
Salesman: "well we have the HD DVD, it is cheaper"
Joe: "does it play Blu ray?"
Salesman: "no, it is HD DVD, but it is dirt cheap because Toshiba is so desperate that it is at a cheaper fire sale price"
Joe: "but BB does not rent HD DVD"
Salesman: "But you can buy movies"
Joe: "I own 5 DVDs, why would I pay 30$ to buy a movie I only want to watch once. I rent 1 movie a week at a 25$ difference in one month that is a 100$ difference."