I'm fine with physical copies for video games...
Now for movies, I've definitely been looking at my bookcases of DVDs and Blu Rays with the

face more and more.
Just yesterday I was actually reading up on how to set up a plex server and create back ups of all my movies and just storing all my discs in my attic or something.
(I like the idea of setting up a 6 - 8 TB NAS and putting all of my movies on it so I can just stream them to my devices around the house. I would want to make sure I get the full quality though, especially the full surround sound. I know the file sizes would be large but I'm fine with that. I would just add more space later if necessary).
I feel different about games because not everything is backwards compatible and there's also value in playing on the original platforms.