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Originally Posted by davewolfs
Is that fact or an assumption? Obviously Blu Ray has a larger capacity but does this does imply that studios have intentions of utilizing all available storage for each release?
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Capacity is not the only problem...the more critical one is bandwidth. Blu Ray can have up to 48Mb/s for video and another 8Mb/s for audio. This allows it to handle the more difficult encodes.
As far as studios having intentions fo utilizing all available storage space - well that depends on the studio. The Blu Ray exclusives ones do - they use high bit rates encode. The neutrals don't because they do want to do 2 separate encodes...so they use the lowest common denominator - the HD DVD version.