The lowering price point of rentals and lack of broadband across the country means physical media is sticking around for a while.
Digital distribution gets a lot of love, and though Netflix has gained quite a bit of popularity, a recent study by the Digital Entertainment Group (DEG) says that digital distribution isn't taking over any time soon.
Part of the reason is that there's no clear point of transition. When DVDs came out, you only really had one choice - get a DVD player. With digital distribution, you have a number of choices in both hardware and sources. It's a much more complex environment.
The study also cited Redbox as a big help in keeping discs alive. Though studios don't always see eye to eye with the rental company, it's the low prices from Redbox that are driving disc rentals.
Another concern, of course, is 3D. "3D content requires about twice the bandwidth as conventional 2D," says the study, adding that most homes won't have access to that kind of bandwidth in the near future.
Source: Home Media Magazine