Who knows? I think DVD's will be dead in 24 months or less. Everything will be beamed via 3G to your home a.k.a. disney's Moviebeam product, released today in 39 major cities.
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I don't see DVDs getting phased out anytime soon...too much money has already been invested in players and libraries by companies and consumers to just chuck it, especially when HDTVs have only achieved what? 25% market penetration? and the cutover to all digital channels has been pushed back again to 2009?!?!? I give DVDs another 4 to 5 years, plenty of time for GZFX to make bank with the mail order model, and plenty of time for higher speed networks to be rolled out to support on-demand HD.
in the meantime, moviebeam will fit a niche, but will require purchase of an additional set-top box + movies @ $2-3 a pop. myself? I'd still prefer a disc in the mail, Blu-Ray/HD-DVD whatever it's gonna be, as it comes with all of the extras, out-takes, deleted scenes, alternate endings, documentaries, easter eggs, etc.