Originally Posted by GatorB

well for rentals sure I rent more form Amazon than going to the video store. I'm not sure about buying a digital download. They are filled with DRM and you're pretty much limited where you can view that content. With an actual DVD I can play it in a multiple number of devices I can take it with me anywhere. If I buy a digital download from XBL, PSN or Apple I'm pretty much stuck playing it on that device.

Also there are many people that don't have access to broadband and thus are pretty much stuck with renting from a store. Not to mention ISPs in the US are starting to institute caps. Until the ISPs in the US expand to the more rural areas and drop the caps physical media will be around for awhile.