I also prefer physical media when there is a quality difference. A year ago or so I was looking into streaming video and found this comparison table (may be out of date now).
http://www.reelseo.com/video-quality-comparison-reference-table/
I also found that uncompressed, a Blu-ray would produce a bitrate of 3000 Mbits/sec. So at 40 Mbits/sec, Blu-ray discs are already are fairly compressed with a 75 to 1 compression ratio.

For music I am OK with the lossless compression such a Apple Lossless which has a 2 to 1 compression ratio (or there abouts). Most people though are just fine listening to music that has been severely compressed using really poor equipment.


That said, I use NetFlix to get access to content that is not available elsewhere and am willing to put up with the reduction in quality for the low cost and great convenience.