People have said physical is going away for over a decade now. Except people will always love owning stuff.
There's no absolute but honestly the convenience (and price competitiveness) of digital will often trump any advantage physical might have for me, and I say that as someone quite aware that fostering digital and subscription schemes is as of now also furthering anti-consumer agendas (no second hand markets, etc...) and dependency to culture conglomerates.
In truth owning mountains of not so durable plastic, some you barely even use (films especially) is not very fulfilling to me anymore and it takes a ton of space in a flat. I totally get the appeal -I still do that for books- and it will probably be a thing for quite some time.
The point is though that your Joe Six Pack consumer is certainly not adverse to do away with physical if presented with a convenient solution as evidenced by Steam, Netflix, the fact that BR is struggling compared to DVD, photo cameras becoming a pro/niche thing etc...
