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Some of us are willing to speculate with the information at hand. Regardless of the fact that Reuters listed the information as coming from a "company source" I'm still listing it as rumour until it actually happens.
There could have been room for two if movie studios only picked one side, I forgot to add that. I think the biggest hit to HD though was Wal Mart. I hate saying it but Wal Mart accounts for a lot, even though I hate them to death.
Honestly this is awesome in ways. Maybe I can get an HD Player between $50 - $80 and then some cheap movies. I'd rather buy buy Batman Begins on HD for a discounted price of $10 than $20 - $24.99 whenever it comes out on Blu-ray. Same goes for Transformers and anything else.