As long as there are physical formats available I'll always prefer them, but I have no real problems with paying for music downloads, specially if it's something that couldn't be obtained otherwise. Since when is information not valuable?

Physical and I'm a cd guy. I'll pass on the vinyl even though the bigger artwork is really cool. Grew up with vinyl, but I'll take a cd. I only listen to cds at home unless I'm sitting at the computer and then I'll pull up itunes. I do use my ipod in the car though and it is nice and very convenient. No more lugging around cases full of cds. Whenever I can I pop a cd in the home system though and that is my favorite way to listen to an album.

I've started buying albums on vinyl about half a year ago, and the things are looking now, I'm not likely to stop anytime soon. I did largely stop buying CDs and will get the vinyl whenever possible. I have quite a few music DVDs and will still buy those.
 
So to answer the thread question, my collection will consist of digital formats, vinyl, and music DVDs.

I probably own less than 5% of my media library as a physical CD. I'm very much a digital person to the extent that if I did get a CD, I probably wouldn't even rip the audio from it because I'd already have a digital copy/it's faster to get a digital copy.
 
When would I get a physical CD? If a band I'm a major fan of release something, I'm fairly likely to get it (eg, recent purchase was Devin Townsend's Contain Us box set). I also get a few DVDs. Everything else I download. Digital copies
 
"But but but what about the joy of having a physical copy of an album, with all the art, liner notes, nice packaging, etc?" - I understand the draw of having a physical copy, don't get me wrong. My dad's vinyl collection is really cool. Musicians should put a lot of effort into artwork, I know I do. I'm up for browsing record stores and buying vinyls, or CDs, becuse that is a fun experience. But the benefits of digital music defeat that for me - the ability to get practically any album, of any artist, any genre, almost instantly, in good quality, means I have access to an incredible amount of music.
 
I know a lot of forum members, especially with this forum's age range, might dislike this approach, but sadly this is what works for me, and I love it.

I voted for digital only because my ability to get to my man cave to sit and enjoy a cd has changed.  I listen to music all day long (in my office, in the car, and pretty much any other time on my ipod), but I rarely have time to savor the sweet quality and tonality of a cd.
Like Staker I too only buy a few physical cds a year, and those are only a few artists who are my absolute favorites.  Much of my collection has been ripped.  For me I dont need to hear the highest quality version of Foreigners greatest hits to enjoy the music when it comes up on shuffle.  But Im sure that if they were one of my favs I would seek out the highest quality available.
Also, many cd's nowadays arent mixed and mastered like they used to.  Shame really.  I have Death Magnetic and I cant say I savor the flavor of the cd any better than the digital rip because the mastering is balls to the wall.
Most of my cd's are stored away after I ripped them just in case something goes bad on my devices.  I just keep back ups on an external hard drive and on memory sticks.  At the end of the month I back up.