The last HD DVD movie releases - which include some recent blockbusters, such as American Gangster - are currently cost as little as $10, while players can be picked up for less than $60. This has maintained some demand for the format, which continues to be supported by online retailers, smaller electronics chains and second-hand stores.
"We expected to see a huge increase in Blu-ray sales and HD DVD dying [when Blu-ray won the format war] but it just hasn't happened," said Jeff Wisot, vice-president of marketing with Buy.com, in a statement released to Financial Times.
"HD DVD sales are still very strong," he added.
Distribution Video & Audio, the largest buyer of excess video and audio inventory, has reportedly bought millions of unsold HD DVDs that were returned to the studios by big retailers. More than 1m units have been resold to online retailers and discount stores and expect to sell another 2m-3m in the run-up to Christmas.