I'm sorry, but you clearly don't know what you are talking about. The cost of the physical media is tiny compared to the retail cost. It is literally a few pence (or cents or whatever) per disc.
You also clearly don't understand the problem with internet. It's a not about the consumer being able to afford it, it's about the infrastructure being incapable of handling the demand. Currently, only a small percentage of people download regularly, and already more and more ISPs are imposing bandwidth limitations. Compression will help, but it certainly won't help enough for DD to become dominant anytime soon.
People were saying 10 years ago that DD would destroy physical music sales, but despite the success of services like iTunes, CD album sales are up from 10 years ago, even in the US (which, unlike many countries, has already experienced widespread broadband adoption). For the record, DD currently only makes up something like 10% of album sales (which have always been the industries biggest earner).
There are so many flaws in the articles thinking, yet we see the exact same thing pop up month after month from tech writers with a tenuous grasp of reality.