Digital Distribution has been around for a few years now and sales of physical copies keep getting lower and lower.
Companies that specialized in physical media have all but disappeared recently. Borders Books and Towers Records closed within the past few years. Former giant Blockbuster had announcements to close 300 stores this week, which shows how uncertain the future is for brick and mortar media shops.
Digital Media Researcher Dan Cryan said, "In terms of consumption volumes we've already hit the stage where more consumers are watching more movies digitally than they are physically. That actually happened in 2012."
As of now hard copies of movies still earn more revenue for film studios than its digital counterparts- but the current trend may spell the death of DVD's and all physical copies in the near future.