A key component of this digital distribution will be WiMax wireless systems, heavily backed by Intel and to be commercially available in 12-24 months. Note the Sundance demo of streaming and WiMax distribution of a film.
Given the convergence of expanded broadband availability, extraordinarily cheap and tiny storage (Hitachi plans to sell a 1 Terabyte 3.5" hard drive next year and a 20 gig 1" Microdrive), and increasing processing power, physical media will move lower on the demand curve, particularly from today's generation of kids.
Of course physical media won't disppaer, but will shrink in proportion to online distribution. Content owners have an even tougher road ahead
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