Toy Story 3 is set to become this year’s biggest selling DVD within hours of its release, giving the flagging DVD market a welcome lift.

The film, released yesterday (Monday), is expected to be under more Christmas trees than any other gift this festive season, according to The Daily Telegraph.

Disney has predicted that by December 25 three million copies of the film will have been sold. A range of retailers from entertainment specialists HMV to supermarkets will be stocking the DVD in the hope to lure more shoppers through their doors.

Toy retailers are also expected to benefit from film merchendise, with retailers such as Hamleys listing Toy Story character Buzz Lightyear as one of its predicted best sellers this Christmas.

Morrisons is selling the DVD for as little as £5, when shoppers spend £50 on groceries.  It is on sale at Sainsbury’s for £7 when its shoppers spend £30. Asda is selling it for £8 – the lowest price when sold outside of any deal.

An HMV spokesman said: “Everyone seems to have a deal on. Supermarkets don’t see entertainment as a core category, but with a film like Toy Story 3 it’s a chance to engage with their customers and gain market share from rivals. It’s a huge family release and that’s what supermarkets love.”

The British Video Association’s Simon Heller said: “Toy Story 3 will be huge for the video market. It’s a fantastic product, which appeals to all the family, which is why all the retailers want a slice of it.”

Disney said it was quite confident Toy Story 3 would become the most successful DVD of 2010, outselling Avatar, which has already sold 2.6 million so far this year.