@ JaggedSac
Digital Distribution is very succesful, we already started online distribution of huge amounts of games and software in the early 90s (Aminet, at a time world's largest collection of freely distributable software for any computer system). Not everything was practical for everyone, so games and other content also sold on diskettes and CDs. Streaming and movie dowload offerings don't come close in quality and isn't preferred by most (prefer to own the content, on physical media with nice cover, etc).
MP3s, especially illegal downloads, steam, etc.