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I would never buy a single digitally-delivered movie that I can't feel like I truly own or have on a physical disc, and find it absurd that "experts" claim the mass market would adapt such a method of buying movies. I'm curious what the next format could even be like. 1080p with lossless sound is about as good as you can get, so what else could a new format offer other than increased storage space for more special features, multiple lossless language tracks, or combining multiple movies on one disc.
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While I agree with you on the desire to own physical media, I truly think that guys like us will be in the minority soon enough.
A lot of people outside of our age bracket prefer renting over buying. Above that, those same people can't tell the difference between 480p and 1080p. Digital distribution is fine, if not better for people like them, and I think people like them are in the majority. Hell, even I would be content with renting a movie digitally if it was a movie I was just interested in checking out, but not owning. One of the problems with Netflix is that it takes a while for the movies to get here, and one of the problems with Blockbuster is that they may not have copies left. Plus, that involves you leaving the store, and most Americans are lazy, obese, and oftentimes, both.
Why leave the house or wait for shipment when you can just click on a movie you want and have it within minutes/hours depending on your connection? I dunno, I just don't see digital distribution as outlandish a concept as some others. While I may not embrace it as heavily as some others might, I definitely do not see it as a failing venture.
Jam it back in, in the dark.