*Sigh* This again?
"People have moved through from DVDs to digital downloads and digital streaming."
No. They. Haven't.
Sure, the iPlayer might be awesome for catching up on stuff, and people might spend all their time on YouTube, but for actually owning/watching something, huge swathes of the population quite plainly continue to buy optical media. Look at the size of the Blu-Ray section in HMV sometime.
"We offer full HD 1080p Blu-ray quality streaming instantly, no download, no delay."
No. You. Don't.
I have a 13Mbps connection, and that is waaaay above average in this country (and yours, I'd imagine). If you can stream Blade Runner to me at 1080p, without visible/audible compression or loss of features, on that connection, I will be impressed. I doubt it will happen.
In the meantime those of us with a clue will buy optical media and wait for the infrastructure to improve. Which, naturally, means we'll be buying PS3s.