Music industry didn't think the internet and downloadable services would be successful and largely ignored it until it realised that millions & billions of illegal downloads of their artists were taken place so they were forced into action.
I download a lot of my music but I still buy CD albums, better quality and is a physical representation of my music tastes/collection
Same thing will happen with films/video. Internet service speeds and cost will improve. Amazon and Apple are likely to expand their downloadable content to full length HD movies at some point and all film studious will be interested in the distribution possibilities.
DVD will be around for many years to come.
I still buy DVDs. I do not intend in joining the HD war. In the future there are likely to be dual format players readily available and at a decent price. But by then downloadable HD content will also be readily available with a service to deliver it.
Take the Steam client for example you can pre order a game before it is released. Steam starts downloading it immediately but it will not be 100% complete until the day of its official release. Downloadable movies would work in a similar way.
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