Sony expects movies to make up 60 percent of future UMD sales, plus a total of 130 million UMDs to be sold by 2008
Since their PlayStation Portable gaming console launched in Japan and North America (and now Europe), Sony Computer Entertainment is estimating that they have shipped nearly 17 million UMDs for use on the handheld. Interestingly, the breakdown shows a close race between UMD games and movies: 9 million and 8.2 million units sold, respectively. This hints at the somewhat unsurprising popularity the PSP is currently enjoying as a portable movie viewer instead of a gaming console.
It's a hunch that has run by Sony as well, since they anticipate almost 60 percent of all UMD sales in the future to be comprised of UMD movies. Their future outlook for the UMD format in general is even more impressive, as they project sales of no less than 130 million units by 2008.
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UMD is pricey (the typical movie I notice here sells at a 20-30% premium over the equivalent DVD) and quality is lower than that of DVD. You also have fewer "extras". Given those problems, and the incompatibility with existing DVD drives, I'm not sure how users will accept UMD movies so easily.