Sales of DVD and Blu-ray discs were down 4.8 per cent globally in 2008, a slump blamed on the economic climate and the rise in online piracy.
Disc sellers were hoping that Blu-ray would boost sales and buoy what is a changing market, with current consumers unsure whether to buy physical media or go online to stream or download movies.
BD not driving until 2010
Screen Digest, who is responsible for the report, explains: "We expect Blu-ray to account for 6.9% of international video spending this year – assuming there is strong promotional activity.
"However, despite consumers' interest in the high definition format and demand for packaged media, the current challenging economic climate means that we don't expect BD to be driving even minimal sector growth until 2010."
Blu-ray sales in 2008 equated to $482 million worldwide but Screen Digest believes this "barely made a dent in the missing revenue".
DVD rentals is also down worldwide, with only Australia showing signs of growth. This is because of the country's burgeoning online rental services, such as Quickflix.