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It has no competition. It'll be fine.
Before you know it, it'll just be called DVD, and be the standard. Physical discs will not go away any time soon. When you download a movie(which is huge, BTW), do you get all of the extras?
Owning media as just a digital source is dicey. Too easy for it be corrupted, deleted, or lost with a hard drive crash -- the latter destroying your entire movie collection.
I was reading an article about how so many pictures taken today with the digital cameras will never be printed and lost eventually, when the owner doesn't keep track of the digital copies, or accidentally deletes them or formats the hard drive and forgets to move them, etc.
Digital vapor ownership is not that appealing. Also,who wants the internet bandwidth tied up while somewhere, some Nascar mouthbreather is downloading the entire Patrick Swayze Blu Ray collection to his hard drive every second?
That's not a future I want to be a part of.
BTW, I love my Blu Ray movies(which I rent from Netflix and Blockbuster). If it exists on Blu Ray, Netflix will have it. They look amazing.
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