Both. Physical media has a lot of advantages, not just as a luxury. Distributed content disappears from the internet when left unmaintained, which is a lot of data.
Plus you have personal content. Do you want to save your stuff on the 'cloud' and just hope personal filings behind an encryption wall is untouchable over a long period of time? Not everything runs a constant network cypher between a million nodes to secure data. Look at world events and all the email leaks, "fappening 1.0 through 20.0", and the financial sectors that get hit constantly. Diversify tactics, backup means more than one at a minimum, so physical is necessary if you want to be responsible. Hard to replace data should be burned on an m-disc and stored cautiously along with other solutions. If your data is not useful and you simply consume consume consume, then sure, you don't really need physical media.
Not a single game emulator is 100%. Not all music releases are superior in digital formats(some is on the musicians part to transfer the master recordings aka: remaster). Not all family videos have been converted, as I'm sure everyone here knows someone with a box in their attic full of home movies that need to be digitally captured. So physical media will never die, plus, your computer/phone/tablet are all using physical media in the form of hard and solid state disks. Remove that, then someone else has the disk drive and you are connecting to them, ala the past method (1970s UNIX computer lab terminal.)
