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Analysts believe consumer acceptance of HD media will grow sharply now that Toshiba has thrown in the towel on its HD DVD format, leaving Blu-ray Disc as the anointed successor to DVD.

But they caution that it's not all smooth sailing ahead. Ross Rubin of the NPD Group said that while Blu-ray technology will become more appealing to consumers, particularly as player prices continue to come down, "the technology is still sandwiched between consumer satisfaction with DVD on one side and the growing number of digital distribution options on the other."