Saw these very cheap Blu Ray movies today in Kmart. They are on p.14 of the entertainment catalogue. There wasn't a huge selection left but there was some for the taking, mainly the action films like Die Hard.
Got myself Silence of the Lambs. For $12, can't complain. Hopefully this is a sign that Blu Ray prices are dropping further.
Also saw some fairly recent DVD's like The Hangover and Terminator Redemption for $10 each. The Office Seasons 1-4 box set (which has been the subject of previous discussion here on Ozbargain) was only $52, but labelled $99.
Yeah, they've had great prices on DVDs recently. For what it's worth, local Big Ws have beaten all of their prices. ($10 DVDs are at 9.84, $14 DVDs are at 13.87)