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And the player is just the prerequisite - then you have to drop anywhere between $5-50 every time you want to watch something.

And adjusted for inflation, that would be almost $5000 today. But there were no other options then.

Isn't it just inherently more expensive to manufacture blu-ray discs and players than DVD, regardless of licencing fees? Blu-ray players are already pretty cheap, but that doesn't seem to have moved the needle much on adoption of the format. I don't think we'll ever see blu-rays being cheaper...

For the average person, streaming makes more sense anyway. With the exception of titles for kids, they don't buy films, period. They watch something once and that's it. It was the same in DVD's heyday, but streaming saves them the trip to Blocklbuster.

DVD continues to outsell blu-ray overall, but if you look at the top selling individual titles week-to-week, blu-ray moves significantly more units.