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I have to comment this. I am sick of all these "digital download is the next new wave for movie format" articles.
I doubt severely that Digital download will ever become the de-facto format. It is true, blu-ray might not make it as big as DVD.
Okay, here are my reasons for Digital Download not making it.
1: There is not even a 70% adoption for internet in households in the US. let alone the rest of the world.
2: There is currently less then 60% broadband use within the less then 70% who have internet. (source: http://www.websiteoptimization.com/bw/0804/)
This means that 40% of all internet users could not get digital movies in a resonable time, people want to watch movies now, and not download for 2 weeks.
3: People like to own thier hard copies of movies, be it betamax, VHS, Laserdisk, DVD, DivX, HD-DVD or Blue-ray.
( I know the same was said for music, But mp3's are small in size and everyone can get them free if they want to, I go to say that NAPSTER was the reason mp3 players became the new defacto way to listen to music)
4: It would be more likely for a different format like flash media to be the new source then digital download because of the lack of poeple able to get those downloads.
5: Finally, Hight def movies take up a lot of space and most set top boxes would barely have 1TB of storage and that would only give the average person about 40 movies if they were 25gigs a movie. I know you can have HD 720p movies for around 5 gigs but that is with plain jane Dolby Digital 5.1 sound and won't give you a real HD upgrade.