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The last time I bought a game or application on physical media was, I think, prior to 2010. It's not that I'm avoiding physical media, it's just that everything I want is available via download.
This extends to movies now, too. We still get some kids' movies out from the library, but I would say 95% of the stuff my kids watch on the TV or iPad are streamed content (obviously on the iPad, of course).
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