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Depends on how you use the media.
I'm ok with movies on demand because I watch them once and that's it. It's very rare that I watch a movie more often. Same goes for books.
But when it comes to music and games I'll stick with physical. I have lots of it and like it filling my cupboards. Case, cover and manual are part of the design and art to me and I keep going back to music and games just like everybody else does. I listen to songs hundreds, thousands of times and play games over and over again.
There's music and games that is only digital but great (imo) so I'll get that digitally but that's ok.
I also want to be able to always come back to something and not lose it because of license expiring, host company going down, artist/developer going crazy and pulling it from every available source just because, etc.

And yeah, of course physical games, and sometimes even music, is still cheaper which is a stupid move to raise prices by up to 30%.