Did people expect Blu-ray to replicate DVD's success?
I wouldn't call the format a failure at all. There still seems to be a very large market for such a "niche" product.
I don't think the format was a failure, just that it failed to replace DVD, which was the original intention. The HD revolution for physical media.
Nobody in the entertainment industry will ever forget that they made mega, mega bucks out of the rise of the CD and also the DVD while spending very little. The CD meant everyone buying re-releases of old albums they had on vinyl and tape, and DVD was unbelievably huge in the early-2000s.
No similar pile of cash will ever be piled again from physical media, and Blu didn't even come close to DVD. Did those selling the product want and "expect" it to replace DVD? Probably yes, and it didn't so in that respect it failed.
Blu ray is way more mainstream than Laserdisc ever was. That was definitely a niche format for "aficionados only."
Kor
Indeed.
That's because studios never had the faith to move away from DVD, the way they did from VHS.
Well the cost savings aren't there I would guess. VHS was expensive to produce and took up a lot of shelf space, both producers and retailers wanted it away and gone as soon as possible.
DVD also still outsells Blu by a fair extent, it never crossed over.