Honestly speaking, I don't think physical releases for movies and TV shows will ever go completely extinct for two simple reasons: videophiles and audiophiles.
All streaming services: Netflix, Hulu, Disney+, Apple TV+, etc. have to compress video for streaming and, while some are better than others, (Apple TV+, for example, is considered the best for 4K streaming IIRC), you're still getting lowered video quality compared to a 4K BD (in a lot of cases, '4K' streaming is actually streaming at bitrates comparable to a 1080p BD's bitrate). And let's not forget the audio here, just like with video having lower bitrate means the audio gets compressed and this affects audio much more than video (like honestly speaking most streaming services audio quality is comparable to DVDs). Meanwhile the majority of Blurays have entirely uncompressed audio, like I guarantee you some random BD from 2008 you have lying around will have better audio quality than the same film on Netflix or whatever in 2023.
And sure I'll admit that most people don't really care about all this! The video and audio quality you get through streaming services is good enough for them! But that's why I specified videophiles and audiophiles, because they're the two groups who do care about this. They're the ones who want to buy and will continue to buy movies and TV shows on BD because they want the best possible video and audio quality for the stuff they watch. That market will always exist and therefore physical releases of movies and TV will continue to exist to cater to that market, even if it becomes more and more of a niche market (just like how physical releases of music still exist but nowadays is heavily centered around vinyl over CDs, although of course CDs are still released just like how I expect regular BDs [or hell even DVDs for super budget stuff] to continue to get released).
Let's also not forget things that are available on home video but not on streaming. Like I have a copy of the 1981 Japanese movie Sailor Suit and Machine Gun on BD. That film's not on any streaming service. The only other options to watch the movie besides buying the BD are buying or renting it from either Google Play or iTunes. Which sure, I'll admit is a much cheaper option (I paid about $30 for the BD vs $3.99 to rent and $7.99 to buy on iTunes and $1.99 to rent and $9.99 to buy on Google Play) but you just get so much more content on the BD. I'll spare y'all the details of all the extra features on the physical release but I'll just say that there's actually two cuts of the movie: the 1981 theatrical release and the 20 minute longer 1982 Perfect Edition. The BD includes both cuts- the iTunes and Google Play release? Only the 1981 cut. So you're missing an entire cut of the movie by going the digital route!
But anyways, the point I'm really trying to make here (considering this is the gaming board) is that none of the above quality advantages of physical releases of home video vs streaming apply to video games. Regardless of if you buy a physical copy of a game or purchase a digital copy on the online storefront, it's all the same data you're installing and downloading onto your system. You're not getting better quality graphics if you buy a physical PS5 game vs if you buy it on the PlayStation Store, y'know?
