Suddenly LG Electronics, Warner Bros. and New Line look like they might be on to something.

In a story from The Hollywood Reporter, a new report from Screen Digest seems to show "that Blu-ray and HD-DVD" will be able to both remain on shelves "for the foreseeable future in the U.S and Western Europe."

This new report "examines the evolution of the high-definition market until 2011, suggests that studios supporting only a single format will be missing out on significant potential revenues in coming years by not making their product available on both Blu-ray and HD-DVD."

According to the numbers that Screen Digest came up with "combined consumer spending for both formats will reach $1.55 billion in 2008, up from the $438 million mark projected for this year."

That would mean that "studios supporting one format are missing out on an estimated $270 million in consumer spending next year."

Like everyone, Screen Digest Video Analyst Richard Cooper feels that Christmas of 2007 is going to be a watershed year for both next generation formats.

"Both formats will be seeking to secure consumer buy-in to their proposition during the critical holiday season but with so much at stake on both sides we think it is highly unlikely that one format will emerge as the 'winner.'"

Cooper goes on to say, "Once it becomes clear that both formats are gaining customer acceptance, studios that have chosen to support one format over the other will realize that they are missing out on potential sales and will have to decide how long they can afford to place principle over profit."

Evan Jacobs