Exactly this - and sometimes they don't even bother with two SKUs and give you both in the same container for the DVD price.

A surprising percentage of the population cannot tell a DVD from a Blu-ray in motion at home, especially if their TV does upscaling.

Of course physical media as a whole is still way down. Streaming outearns physical by a lot. All physical media is less than half what just blu ray was 10 years ago.