Whither physical media in a digital world?

Fred Wilson has a great post on his blog outlining his thoughts on the music industry and where it is heading.  One sentence caught my eye:

"Within five years, physical distribution will likely be history."  

I agree with Fred and would extend that to other media including DVDs, newspapers, magazines, books. I don't think they will all be history in 5 years but they won't be too far behind CDs.