I understand the view of Steve Guttenberg about the future of streaming and I’m sure lossy streaming is and will be king now and in the future but lossless streaming is another beast.
I live in Portugal and around here we got some really good internet providers, the network is one of the best in the Europe if my memory doesn’t let me down, but even around here if you go above a certain limit of data download per day your internet provider will give you a nice axe on your down speed (not officialy, but they do it).
Now imagine downloading Hi-Rez audio is just as normal as going to youtube, providers won’t be happy about such heavy traffic on the network. Plus some people still have a data plan and can’t stream songs a la carte.
Above all a streaming provider works by a monthly subscription, and I’m sure lossless will come at a Premium price that only the most audiophile bunch can pay.
I don’t believe on the death of physical formats, people enjoy having stuff on their homes and that’s also why Vinyl is coming back, people enjoy having stuff at home to show to friends, be it books, CDs or even reel-to-reel tapes.
With audio files you can share but its not the same.
I enjoy lossless audio but still have too much CDs, I also still buy CDs from the artists I truly love.
Even so I believe the new generation will be addicted to lossy streaming but with luck some (I know some who read this) will have physical formats to show to their friends.