The faltering of companies like Blockbuster should be good indication that digital content is the way of the future. Companies like Netflix are already drawing customers from traditional means, as well as offering streaming media. While not 100% there yet, I think many people are showing that they would much rather make these type of viewing decisions in front of a computer in the comfort of their home.
This doesnt mean that physical media will go away, it will just find it's own place in society. Magazines and books were supposed to die too after all.
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