I'm pretty sure there are still people who would prefer a 'hard' format like CDs/DVDs. I know because I'm one.
I'm not huge on music, but lots of what I like is 80s stuff and lesser known genres like country and western (Johnny Cash, Howard Keel, Jerry Reed etc) and I love my film soundtracks. I've got all the CDs, mostly as a collection that I can store away and be geeky about but haven't bought an online MP3 album yet from Amazon or anywhere. I know I will once I have to, but it doesn't bother me at the moment. DVDs/Blu-Ray however, I do buy most online due to price but if HMV had good prices I'd still buy hard-copies in hand as I love the feeling of browsing the titles, checking out the covers etc. Even the deals like 3 for £20 etc are great, but lack decent titles.
A lot of what I like music-wise is classical or film scores. I like browsing as well and I also like having the item in hand instead of waiting for a delivery.
I'd rather buy a physical album and rip it myself. I very rarely play CDs but it's nice to look at them!
I know my dad will still buy physical CDs, because he likes stuff such as Opera and needs a libretto which a digital copy on an MP3 player can't provide.
Spent money in Waterstones yesterday but not as much as I wanted. Was looking for a few books that they didn't have. Guess my £10 gift card will wait til next time. I'm waiting for Hilary Mantel's latest to be out in paperback. I think it comes out mid-May.
I tend to buy books on the Kindle, now. Unless it's a book I want on my bookshelf... which is an élite group. What I do think Waterstones is good for is greetings cards. I like their selection and often purchase cards I like the look of the use when the occasion arises.