Digital distribution is still in it's infancy (In the USA anyway).   It will be years before this is the main stream way to distribute content to the masses.   Everyone needs to keep in mind that the content netflix is currently able to place online for digital distribution is NOT HD for the most part and a great deal of there library is stuff that is older content.   Everyone got excited a few month ago when Apple announced that their AppleTV product was now able to tap into Netflix's content......then after they review the content that was actually available the bloom quickly fell off the rose! 

Mainstream consumers have to buy more than 3 DVD's a month. I consider that they only buy movies at $5 each. A netflix account costs monthly $16,99. It seems to me that you have to be a movie freak to sign up for a netflix account 12*3=36 movies a year.

It is going into the right direction

lol, digital distribution better get a WHOLE lot better if it takes me 10min to download 400mb

....if you do the math that's 2 hours for a 5gb game, and who knows how big games will be in the future.

Digital Distribution is at a similar position today as MP3 players were before the release of the iPod. There is nothing "technically" wrong with Digital Distribution at the moment, its main problem is there is no product that will drive its adoption on the market (or on the horizon). This lack of a lightning-rod has nothing to do with lack of effort, companies have tried dozens of different products and yet nothing has really attracted people's attention.

Personally, I think the product that would attract a lot of attention would be a device/service that (essentially) replaces cable with downloadable content that is released at the same time/before it is released on television or in stores; if your favourite TV show comes on TV on Tuesdays at primetime, the show becomes available at 6:00pm for anyone who wants to watch the show. Kill the PVR, kill DVD, kill Blu-Ray and kill cable all in one swoop ... even at $150/month for the service (including cable, internet and telephone) people would see massive value in that service

Just wanted to add that I am in no way, shape or form saying DD will replace hard media. However it will become more accessable and hence it will be maintream...

Netflix seems to be the only major player right now, not counting apple tv and xbox live. And if they succeed others will surely follow. Game rentals may be possible with DD soon...

Im sure no one thinks or would even like having worldwide domination of digital distribution but as long as the option is there...everybody wins.

I honestly think that digital distribution of movies and tv programming has a much bigger threat towards TV channels and video rental stores then bluray media as whole.

Edit - or what HappySqurriel said above

WTF!

Whats your problem?

This topic basically means:

"Xbox 360 Digital Distribution vs. PS3 Bluray"  ?

lol, did I guess right?

No, not really.   Sony also has movies for sale and for rent on their store as well so they also have a foot in the Digital Distribution arena as well. 

its some places its possible but this generation of consoles and next it won't kick in yet.

HD is 1080p full quality.

not upscaled.