Is Digital Download gonna replace Blu Ray Disc?

There are a dozen reasons why it's not yet plausible that digital download will replace Blu Ray. Here are a few.

1. Quality of the video and audio

2. Availability: 40% of American homes still do not have high speed internet.

3. Hard drives aren't as stable as phisical discs. There is always potential of loosing your digital copy.

No, downloads aren't going to replace blu-ray, or DVD for that matter.

You mention the reason why - people still like having a physical item, a collection.

Sure, people point to music, and how iTunes and an iPod has replaced most peoples' CD collections, but that's a bit different. First, the big problem with music was having to buy the entire album even if all you wanted was 1 or 2 tracks. Second, you can now get a song for a buck. Movies don't work that way. You never hear someone complaining how they'd love to only buy scenes 1, 5 and 23 from a movie, for instance.

The other issue that downloadable video isn't at the same high resolution as blu-ray. In some cases, it's not even as good as DVD. For casual viewing and rentals, streaming or downloads may be fine, but even then, not everyone in the US has broadband. Even most people who do have broadband don't have a fast enough connection to support streaming in HD.

Blu-ray isn't going to fail but it's going to remain a niche product.

I think their will always be some form of portable disk to watch movies on, but blu ray has already taken a hit from digital downloads. It's not nearly as successful as DVDs and it's not going away any time soon. Has iTunes replace CDs? No. So Netflix or any other streaming movie service shouldn't replace blu ray.

Without a doubt BLU-RAY. Maybe renting a movie on your couch is more convenient but you wont get 1080P thru Apple TV. And downloading a HD Movie can take some time.