good post. realistic. look at CDs. they might be on a slow decline, but they still sell billions worth per year, and that's likely to continue for many years.
keep in mind 99.9 percent of folks watch movies at home on televisions (not computers), and most are likely to continue doing so for many, many years to come. Most people also have DVD players. Many or most would see no reason to buy yet another gizmo to transfer downloads to their televisions--(which involves a bit more effort and tech savvy then just connecting a TV and DVD player with a cable and throwing in a disk; many people don't have initiative or the savvy).
As far as games, as far as I understand it, there's a huge reluctance for the ERTS of the world to proceed with downloads, for a variety of reasons. look at the trouble IFLB has had.