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I love digital distribution since the first downloads i clicked on my dial-up connection more than a decade ago... But i also love having the product in my hands and having total control over it... 

Netflix is so popular because of the rental model, Blockbuster failed at that, but Blu-Ray market is in the sales, not rentals, and the media has good sales and a good market growth... 

Microsoft being right? they didn't have a stand in the first place, they just picked whatever that was not blu-ray, twice.

Apple, however, did have a stand in Digital Distribution when they launched iTunes.