Still sticking with DVD/BR's personally although netflicks has made that easier by dropping the prices of them considerably.
Personally I find the idea of casual/throwaway viewing of TV/Film much less worthwhile now, using the net has mostly taken the place of that for me and its only quality work I'm willing to devote full attention to that I view much.
Have friends with netflicks and honestly there own released cinema has consistently disappointed me, seems like they have a cursed hand when it comes to stuff like Mute and Annihilation failing to live up to expectations, perhaps why those things ended up on netflicks I spose.