The bottom line right now is that only the super hard core and folks with cash to burn are buying up the HD-DVD players and pre-ordering the BR players. Both are sold out all over the place and the companies can't make them fast enough. There are a respectible number of movies already out for HD-DVD and BR isn't far behind. However, there will only be one model of BR player out before the fall as Sony & Pioneer just pushed back their players release dates. However, I honestly don't think it matters.
The early adopters don't play a huge factor in these types of things. Both players are way too expensive (HD-DVD @ $500 & BR @ $1000) to expect anyone to buy them in mass quantities (read: by the millions), even if the movies aren't that expensive (around $20 a title). The PS3 will sell out when it launches (4 million units in November & 2 mil more by Christmas if Sony can pump out the E3 projection numbers) which will destroy the installed base of the HD-DVD players unless somehow they are able to bump up their manufacturing process.
The format war won't even be won this holiday season. Even if the PS3/BR players outsell their HD-DVD counterparts it will be the issues like copyright protection, title selection and availability that really matter. There are other factors but those are the biggies.
The fact is that by the end of 2006, about 25% of US households will have a TV capable of receiving a HD signal. HDTVs are getting much cheaper and between the videogame and movie industries (not to mention TV on DVD) the install base will simply grow and grow. The only TV channels that don't offer programming in HD now simply don't pull in the ratings for them to make the effort of putting out both signals. But in a few years I would be shocked if networks like SFC aren't broadcast in HD (side rant: I'm still annoyed that the show is taped in HD but I have to wait for the DVDs or on the UHD network to see the highest quality). The major networks have nearly all their prime-time programming in HD right now. Not to mention most sporting events.
The "don't know you really want it until you see it" factor will continue to take a while to develop in consumer's collective minds. And companies offering hi-speed internet, cell phone service plus HD capable cable/satellite services all in one package will start to push further and further into the general public. Right now, it's either the sticker shock of initial cost (TV + HD tuner + install price + DVR + audio system) or the monthy fees (~$60 to start) that stops interested consumers from jumping on board.
When that cost seeminly disappears into a combined bill, you can get a good HDTV for $300 and a home theater for the same price the HD-DVD/BR market will really unfold and we'll start to see who the winner will be. Of course, it is possible that both formats could linger for a while and dual-format players will be king and then it won't matter which format a film/show is released on.