The amazing opportunities presenting themselves outpace any disadvantages, I think. It's just a question of adapting to the newer formats, and that is driven by convenience and access.
I've been watching "cloud" movies in HD for a long time now, and have bought very, very few DVDs or Blu-ray movies since. I pay what I'm charged for the movies I watch, they're available for a period of time, and then they disappear from my harddisk. Very convenient - particularly the fact that I can find such a large number of movies.
I watch trailers on the net, in order to decide which movies I'm actually going to go out and see at a cinema, or watch in my own cinema. Very convenient.
I use Spotify and other services to evaluate new artists or new recordings, before I buy them in higher-resolution formats. And it's also great for rediscovering older recordings, before buying those.
The net is great for finding information about the artists I listen to, in ways that far surpass anything there was room for on liner notes; and there are video interviews, YouTube videos, wiki-entries (constantly updated by die-hard fans).
If you're interested in opera, you would be amazed at the knowledge and focus of the people posting opera-videos to YouTube, for instance -- and a company (hint) which made this treasure trove easily available to customers through a quick search would find a very appreciative audience. (And it's not just opera, of course. Just about anything under the sun, really. Interested in chess? You can spend years just watching chess movies discussing games and theory ...)
Things are radically changing when it comes to the extent of and availability of content. And Trip's right - there's too much of it out there to fit on individual hard disks, let's just keep it out there, and access it when we want. And if you do want a copy, there are ways both illegal and legal of securing that.
The initial DRM on the iTunes Store was at the bidding of the record companies. Now that iTS is the world's largest record store, and the record companies are making money from it, they're relaxing that requirement. And there are a lot of other providers of A/V content, of course.
And while it's true that a lot of the music and video that's being downloaded is provided "free of charge" - it's also driving sales. As Puncher writes, and as definitely attested to by my daughter and her friends, they end up buying CDs by the barrel. But not the top 20s - they are circumventing the traditional gatekeepers, finding interesting music that would never end up in a record store and buying that instead. Which is good, I think.
At any rate - we had better get used to this change.
Check out Wolfgang's Vault if you're interested in live music performances (iTunes Store is offering something similar.) Or if you want to take your chances, here's a link that will keep you preoccupied. Each day, recording technicians upload live concerts - some nights there will be over a hundred new concerts here. There are some true treasures among them - you can go by the ratings on the right if you want to narrow your search.
I'm linking to the ones in 24-bit high-res FLAC:
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It is rumoured that this is an unapproved leak of the coming iSlate (well, most likely iMagic) to be officially announced on the 26-27th of January.
Here's what it will do to publishing as we know it. It is being released with an OLED screen as an option - publishers around the world have been briefed on the capabilities.
Now, imagine browsing forliner notes and background info on this, while enjoying a performance. All the while controlling your A/V using the iMagic:
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[View:http://www.youtube.com/watch?v=Rqr3bwdfVg4]