I quit using Blockbuster when I saw that they only carried very current releases. I could not find many movies I was looking for that were over a year or two past the release-to-DVD date. Stock was very depleted compared to the past. I mostly watch "older" movies which I read about online. Blockbuster perhaps is now appealing to the PS3-owning households who may rent a game and also a Blu-Ray movie - not a very significant market in my eyes.
I don't know anyone who owns a Blue-Ray player, or a PS3, or an HD-DVD player for that matter. I personally plan to use my Oppo DVD player in my HT system or my little Toshiba DVD player in the bedroom/on trips for the forseeable future
I'm not betting on Blu-Ray to win yet either. It is still a marketing battle, announcements do not create reality.
Do Playstation 3 owners even watch Blu-Ray discs? And do they watch more Blue-Ray movies than XBox HD-DVD player owning gamers watch HD-DVD movies?
Toshiba is theroreticaly about to release HD-DVD burners for laptops and PCs. What effect will this have?
And who won the DVD format war? DVD-R or DVD+R 
Yes most PS3 owners do seem to watch and buy BD movies...and most enthusiast actually use the PS3 as it the fastest functioning and most future proof BD player out there as of now, and also has hdmi 1.3.
Amazon just put the PS3 on sale at 499.00 for the 60 gb model with five or 6 free BD movies and free shipping, and the sales went up 3000%.

The PS3 is 100% responsible for BD overtaking hd dvd even though it had a two month head start.
This is true worldwide, and not just in the U.S.
BD caught up in December, 1 month after the PS3 release, and shot past hd dvd in January which is exactly when you could start actually finding them on shelves.
Same goes for all of Europe where the PS3 was released and all of a sudden BD took the lead.
Netflix Germany has 70% BD rentals just a couple of months after the PS3's release.
In Europe, hd dvd had the lead and one week after the PS3 was released, BD had 87% of the sales.
Talk about your trojan horses.
Japan has already chosen BD which is no big suprise.
The XBOX has a 33% failure rate in Europe...and I am sure the U.S % is probably not much better.
The add on for the 360 has zero way of ever getting 1080p or any form of HD audio.
Having both in the theater, I can tell you first hand that the PS3 is far better built, more feature packed, more powerfull as well as much quieter.
The first 360 I bought my kid lasted 7 hours before it got the flashing rings of death.
Read this
http://money.cnn.com/2007/07/05/technology/microsoft_charge.reut/index.htm?cnn=yesDell already had Blu-ray drives in their PC's.....and BDr drives are availble and have been for quite some time.
What the PC market wants is more space as always....and 50gb is going to beat out 30 gb any day of the week in that market.