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Blu Ray won't die period.  I have 300 DVD's.  Assuming all HD downloads are single layered (25 gig, dumb assumption too) it would take 7.5 TB just in storage to hold these.  Additionally, if I had that much money in downloads, I would have backups of everything.  So at least 15 TB just to hold movies.  Not withstanding if downloadable CD's were all 9.99 and included the entire CD, they wouldn't be nearly as popular.