Personally, (being older than young...) I still like physical discs.
The last I checked, they are the best quality that the general public can get for commercial media.
I really like blu-ray discs too, I don't burn many but I like getting the movies on that media.
Here's where IMO Sony messed up, they made the blu-ray structure too complicated so that interests in say authoring a blu-ray is still only available with expensive software.
Yeah, I know about the Sony's budget softwares but they force re-encode on everything, at least to my limited knowledge of the matter.
Yet the critical perceptions of other posters isn't unfounded since Sony has had a less than honorable attitude toward the general public at large.
Also their product line of hardware couldn't compete with the market (for the most part) because their products weren't necessarily of higher quality and it seems Sony was unwilling to cut prices on the goods to make them more in line with marketplace.
The cynical side of me isn't ready to accept their numbers for their "projected income" either.
It is hard for me to believe Sony isn't making a fortune selling movies and music.