IMO, it doesn't make sense to say that Blu-ray player prices are going up due to lack of competition. It is just a format, it is not a product. The real product is the player, and you have plenty competition there: sony, philips, samsung, panasonic, and maybe toshiba. Not to say the other brands, like oppo, pioneer, etc. So now it is time that these companies start fighting each other to put the lowest price in the market, scaling the production and making it more efficient. I believe that I read somewhere a while ago that only the blu-ray Led is $100. Not to mention the whole hardware to decode it.
As for the movies, this is a problem not only for blu-ray, but for all other types of media. But this one the greatest competition is