At one point such a thing wouldn't have been technically feasible, but as broadbast becomes ubiquitous throughout the world we're very close to being able to centralize all media and stream it. Perhaps music and movies are two completely different things, but the same technology could be applied to both.
As for the studios wanting us to buy their DVDs...well, yeah- they want that
now. But wouldn't it much more attractive to them if we couldn't own any of them, but rather rented them each time we wanted to view them? To those of you with kids, imagine the money Disney would make if they charged for each
viewing of
Cars or
Monsters, Inc. instead of each
copy! The RIAA makes money when we repurchase
Kind of Blue again and again, but think how much more money they'd make if we just
rented it again and again.
There's no doubt that lots of us "older" guys (ie over 30) are used to having a hard copy. But I really think younger people have a little different view than we do. The under-25 kids that work for me don't really care much about CDs- they like music (or what passes for music with kids nowadays!

), but don't give a damn about the actual disc. Most of 'em are happy downloading, legally or not. They burn discs for their cars, taking to work, etc but don't seem to care about album art, credits, etc.
Perhaps VoD (video on demand) from centralized servers is more likely than music. First off, you're generally (but not always) going to be at home when you watch a video, so being tied to a router/wifi isn't as big a deal. It could present a bit of a problem in your car, although who nows how powerful networks may one day get. Also, as many say, people tend to watch a movie only once, or perhaps a few times, whereas a favorite song may be played several times a day for weeks.
I don't ever want to give up actually owning my movies and music, so I hope that option is always there. If it wasn't, it's hard to say what I'd do. There's enough "legacy" material extant that I could, for the most part, forego new music and just listen to what's already out.