So what do you do when Steve Jobs says your entire industry is going to be replaced by digital formats? Refute it of course! Jobs claims that Internet based downloads will surpass Blu-ray, stating that, “Bluray is looking more and more like one of the high end audio formats that appeared as the successor to the CD - like it will be beaten by Internet downloadable formats.”

The Blu-Ray Disc Association responds, “According to market analysis Blu-ray Disc has a rate of adoption is very similar to that of DVD at the same seniority (18 million U.S. homes with Blu-ray in Q4 ‘10, the same numbers as the penetration of DVD to Q1 of the fifth year on the market of that size, Adams Media Research), we agree that the Internet will increase its importance to both stream that content to be scarce, but we do believe that the physical media like Blu-ray Disc will continue to dominate for many years, due to ease of use, high durability, and certainly the ability to deliver high definition experience and quality available anywhere.”

Anywhere you have a Blu-ray player that is. Personally I prefer just to instantly download movies, so I’m going to side with Jobs since I’m not a fan of discs at all. But what do you guys think? Will Blu-ray continue to remain in the market for years to come because of its market penetration? Or will downloadable content cause Blu-ray to sizzle out and end up like the CDs of today?

[via 9 to 5 Mac]