I think your thread should be titled "Are you paying for media?" since its more about the fact that you pirate your media.
When I pay for something, I prefer having the physical media. So to answer the question, yes, I buy physical media. I don't pirate.
EDIT: I just remembered PSN games. I download them since I don't have a choice, when I can choose, such as with Warhawk, I go with the Blu-ray.
EDIT 2: Also, I get my music from XM satellite radio, so I don't need to buy CD's. My radio allows me to store the songs I like.