it's complicated ...
Here's my personal history.
I only briefly subscribed to cable, back in the mid '80's. I was so proud of myself for finally getting access to premium shows (Showtime, HBO, both in their infancy) and movies before Blockbuster got them, only to discover that they mostly ran them at inconvenient times, and they didn't have a lot of variety, they kept re-running stuff. Plus the monthly subscription fee seemed high and never ended - what a shocker (even today compare cable costs to Netflix and Amazon, the two primary "monthly flat rate" services).
Blockbuster busted my chops. They had so many ways of pretending to be cheap and convenient, while doing everything possible to "game" our usual mistakes so they could make their real money on late fees. Still, for years they and the odd indie shop here and there were the only game in town.
Once in a while I'd actually buy a disc. I could never figure out why a music CD would cost $17 but you could get an actual movie, with much higher production costs, on a DVD for less. Sometimes much less. Some of those early transfers - from VHS to DVD - were pretty miserable in terms of quality though.
I started watching streaming video on an old underpowered laptop. I think Lost was the first show I regularly watched. The early streaming video was really low quality, whether from Hulu or the TV network itself, but man the ability to watch when I wanted to - to time shift - even to pause, to back up to catch missed dialog - was a real experience shifter.
I never thought Netflix streaming would work. Regular Netflix had been a game changer for me. I think I was on the 3-4 discs out at a time plan. It was much cheaper than Blockbuster. I would order discs without worrying about whether I was making a great choice - if the movie was a bomb, I just sent it back without watching.
But I was willing to give streaming a try. The real game changer for me was HDMI and Roku. First, even a good computer wheezed under Netflix streaming back then. But, shockingly, this unknown miniscule company (Roku) turned out a device that streamed much better than my computer. Much sharper. Fewer stutters and stalls. The days of waiting for a buffer to patiently fill, and hoping the rate of play wouldn't catch up and the buffer ran out, were over.
TV's were moving from tubes to flatscreen. To HD. But HDMI really turned the trick. Sound hookup was much simpler. Accessing the device was much simpler.
Somewhere in there, Blu Ray came along. But it was too late. The players were slow to boot up, the players were expensive, the media (discs with the movies on them) were much more expensive than DVD's (they are often cheaper now, at Frys). Plus, I couldn't play them on any laptop and I couldn't convert them to computer files to watch on trips (like I could my DVD's with Handbrake).
So streaming slowly seduced me. I got mad when Netflix changed their rates and split DVDs from streaming, and ending up dropping not the streaming, but the DVD's. My kids scratched and lost DVD's. The electronic content was kid proof and me proof.
I swore I would never buy e-content. I bristled at iTunes prices; and Amazon's were about the same. Then I started buying e-content, or renting. Instead of waiting for Netflix to get content, I bought it from iTunes (or rented it). TV series without commercials, could be watched in binges. The experience was qualitatively different. Sure I had some DVD sets - first two seasons of Breaking Bad on sale - but being able to change my mind and veer off in a different direction quickly, via a remote on Apple TV or Roku, and much better than having to muse about which DVD I wanted, find it, insert it, get bored, load another - the instant access to any content via streaming and a remote changed the viewing experience for me.
For the last year I haven't watched Netflix streaming OR any DVD's or Blu Rays. Netflix's movie content is pathetic. It has no "rent" option for new content. In that regard Amazon is better, they have older titles for free, other stuff you have to rent or buy. iTunes is the opposite - no subscription stuff, just rentals and purchases.
I migrated away from Netflix for another reason (pay attention Netflix!). They "secretly" would downgrade my video stream. It would be really sharp, then a little fuzzy. Their buffering sucks. With Apple, the buffer might stall (once in a rare time) but quality is always impeccable. Amazon, same issues.
So here I am. The latest Apple TV - real surround sound, real 1080p. I can watch my favorite tv series in real high quality. When I want. Completely time shifted. Change my mind and switch shows easily.
Netflix is now the kiddie's nanny. I only watch it for some obscure anime or for House of Cards etc. If they have a movie on it that I would have to pay iTunes for, I watch it on Netflix. But that's rare. Usually because I can't wait for a movie to make to Netflix anymore. Usually because I am watching tv series that take forever to show up on Netflix.
For travel same thing. I just stop watching the stuff I like in the weeks coming up for a trip, clear off my iPad, and load up movies from iTunes before I go. If I am lucky enough to have good wifi overseas, I can download more or purchase. Once again Netflix is a fail, they won't even stream content to me overseas even if I had a connection.
But you can't fault Netflix at $8 a month. Best bargain in entertainment. Multiple streams too - my two kids can both watch all day on separate tablets, and they often do.
In short, e-delivery is the future. Heck, it's right here now. Discs just can't compete on convenience and in the best possible case - Blu Ray - they only match Apple TV etc. quality.
I thought Apple, a seller of premium products, was willful and obnoxious in leaving Blu Ray players out of their machines with players. Now I really don't care any more. And as much as I hate the iTunes program - I don't even have to use it. I just order content from the Apple TV, that way it doesn't auto download to my desktop and clog up my hard drive.