I think it's important to remember that we are the guys who spend hours making sure each movie or piece of music is tagged just the way we want it so we can search it, playlist it, smartlist it, expression it etc to within an inch of its life. A lot of (most?) people aren't like that. The are happy to just listen to a song or watch a movie, without needing the CD or DVD or an uncompressed, bitrate perfect copy of it stored on their local system or server.
This is true, but even with the ubiquity of streaming services and the availability of music these days, I know fewer and fewer people that actually listen to music for enjoyment now, and just have it on as background noise instead.
I think a lot of that has to do with the quality of the music people are listening to these days, and what people are listening to music on now - whether they're aware of it or not.
Stream highly compressed music to a phone and use earbuds or a cheap pair of fashion accessories to listen to it, and it's just noise.
Play CD-quality music on a good pair of headphones, and you really get involved in it.
Stream music from your phone to one of those wireless speaker docks which generally have a low quality mono sound (even if it's technically stereo) and it's fine for background noise.
Play some CD quality audio or better through a decent pair of stereo bookshelf speakers and people really get engaged in the music.
I don't think many people these days are going to get interested in listening to music as an activity in itself any more (got to check the phone every two minutes, play a game, read a magazine etc.) but I've certainly noticed the difference when I play some high quality music on a good audio system rather than when people just sync their phone up to a bluetooth dock and stream from Spotify and the like.
And what happens when an album you want to listen to gets pulled from the service, the service is down for maintenance, you run into bandwidth limitations (someone on your network started a download) or your internet goes out?
Another issue with streaming services is that, by necessity, they are often quite mainstream. There are a lot of films, TV shows, or specific albums/singles/tracks/mixes that just don't get licensed.