First of all, the CD and movie markets are at least a little bit different. While iTunes may very well be selling more than CDs this is because websites like kazaa, napster, etc has to some extent killed the need for buying CDs as anybody can upload and download music files once you put them onto the PC.
Movies on the other hand, are quite a bit harder to store on a PC and upload/download so in my quite humble opinion, the dig distribution thing for movies can't and won't ever be the standard.
-Movies are frequently 10 or 15gigs, 25 or 35gigs if HD. That is quite a lot more space on your PC than a little MP3 of Metallica or what have you.
-Also, Blu-ray has some built in copy protection that DVDs and to a much greater extent, than CDs as well which will probably be broken eventually, but as long as it keeps Blu-ray pirating down to a minimum, i'm happy.
-Also, there are movie industry guidelines that are designed to keep pirating to a minimum, like region coding, the Blu Ray association's demand that all BD movies have their copy protection, etc. Beleive me, the movie industry has seen what has happened to the CD market and they have taken some steps to avoid the same result.
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