Submitted by: kirkland on Wednesday September 03rd, 2003 at 02:52 PM EST

Forrester Research recently released a new study about the future of compact discs and DVDs, and the outlook wasn't pretty.

Forrester predicts a dramatic slide in the usage of both media, with music and movie downloading supplanting the purchase of CDs and DVDs. According to the study's main author, Josh Bernoff, "On-demand services are the future of entertainment delivery. CDs, DVDs, and any other forms of physical media will become obsolete."

For a company likeNetflix whose whole business model is seemingly built around the future popularity of DVDs, Forrester's findings initially appear deadly. After all, how can Netflix prosper -- indeed, survive -- in a world where DVDs no longer have consumer preference? As if the threat of Wal-Mart creeping into its territory weren't enough, now DVDs themselves are being called into question.

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