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http://www.dailytech.com/article.aspx?newsid=1538

People are pointing out many reasons for UMD's failure in the movie spectrum. Some chastise Sony for releasing too many titles too fast instead of gradually releasing titles. Others cite high prices for UMD titles even though bonus materials were often cut out in order to save disc space. Another reason could be that Apple's 5G iPod pretty much stole the limelight in regards to mobile video entertainment, and that was before the UMPC craze.

I've never purchased a UMD flick for my PSP; it seemed silly when I could just get the DVD and rip to to a memory stick.

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They were way too expensive. Maybe if they were 2-5$ I would buy them, but otherwise it just seems like a retarded waste of money.

[Dakar]

On the flip side, I heard UMD rips were the perfect size for iPod videos.