The incentive for studios is to not be out done by other studios. If only Paramount and Sony were releasing movie in HD then more of the writers, actors, directors and producers would gravitate to those studios. This would result in the studios not adopting new technology to be left behind.
Consumers eventually would too, although the only studio worthy of any loyalty/favoritism right now would be Pixar.
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The incentive for studios is to not be out done by other studios. If only Paramount and Sony were releasing movie in HD then more of the writers, actors, directors and producers would gravitate to those studios. This would result in the studios not adopting new technology to be left behind.
Consumers eventually would too, although the only studio worthy of any loyalty/favoritism right now would be Pixar.