But the big lesson to be learned from the iPod is that people want to be able to integrate media into their lives. Having to set aside time to sit in front of a screen just isn't what everyone wants to do. Just as TV never replaced the radio, I imagine there will always be a place for the silver screen is some way or another, especially as long as there are people like us who admire the artistry of filmmaking. However, if people have better access to visual media, and are watching music videos or "TV" shows more often, I have to think that's a good thing and will create more demand for our product.
Although you have to pay for it, there's an interesting article in the NY Times about this very subject: NY Times article