After just three months, Disney has sold more than 1.3 million movies
through the iTunes store. Fears that digital sales would cannibalize DVD sales led to recent disagreements
with retail partners like Target, however, those fears seem to be unfounded as brick and mortar DVD sales remain healthy. Experts do expect a long-term downturn in DVD sales as the market matures and consumers turn to other viewing models including iTunes and Netflix, but for now DVD sales of titles such as Pirates of the Caribbean: Dead Man's Chest have reached record highs.
It seems to me that there are two kinds of movie buyers these days: those going for convenience and instant gratification, for whom the iTunes store is the perfect fit, and those looking for long-term durability, who want the portability, device independence, and physical reality that DVDs offer.
As far as TV shows go, Disney has sold more than 20 million downloads in addition to their movie titles.