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: The demand for a physical disc has been declining, which is a shame because
: it's the best looking ay to get HD video.
Well, I think the observed decline isn't really a decline as it is so much DVD being on the way out and Blu-ray sales growth not yet making up for that loss. DVD hardware sales peaked in 2004 and disc sales peaked in 2006, before Netflix streaming became popular. VCR sales appear to have peaked sometime in the latter half of the 80s, though without solid yearly numbers available I can't be sure, and it appears that VHS movie sales may have peaked at some point in the 90s.
In any case, just like console sales and console software sales, sales of other consumer electronics tend to follow a bell-shaped sales curve. The tech starts off expensive so adoption rates start off slow, then as prices decline adoption rates increase, then eventually sales reach a peak as the tech begins to reach market saturation. Some other electronics have "generations" just like game consoles, just spread over longer periods of time, and thus we should expect to see peaks and troughs just like console sales. TV sales probably declined for a while until color TV became affordable, and as color TV hit market saturation TV sales probably declined until HDTV sales took off. Home video hardware sales during the VHS era probably declined for a while until DVD sales started to explode. While home video sales are declining again due to DVD being past its peak, they'll likely stabilize and grow again due to Blu-ray. They may never hit the massive annual peak we saw with DVD due that format's phenomenally rapid growth, but home video on physical formats isn't going anywhere anytime soon. And even if Blu-ray never quite reaches the market penetration of DVD, well, the one's who didn't adopt it are missing out. Watching Blu-ray on a good 1080p HDTV is simply amazing.