of course, the content in question would have to be porn, lol:
http://msnbc.msn.com/id/10482343/
however, if you know the history of porn distribution and technology, the cd-rom format took off big time when the adult industry started using it to deliver content, way back in the day.
so while we can be skeptical of the $4 billion figure, the implications for delivering mainstream video content via alternative methods should not be ignored... web streaming, ipod, cell phone, voip, hd dvd, etc., before too long you could find yourself having to encode content in a bunch of different formats.