Unlikely. This isn't like when video first came out and people could watch it at home for the first time. With the Internet one can watch/download so it won't be the deciding factor in this stupid tug-of-war.
You know, I have a solution to the format wars. It's such a simple idea, that I really can't believe that no one ever came up with it.
Put all media on one standardized form of flash media. That way, the only thing we'll ever need to buy is a backwards-compatible player to play all of our old flash movies.
Basically, you're buying a mini flash drive that contains your movie, game, software, ect. I don't see how this couldn't be a good idea, it's not like the don't pirate movies now. Of course there will be tons of pirating, but you can find EVERY movie, game, and piece of software that you want on the internet anyway. Why not just settle down on one final format that can change as computers change.
I already predict that computers will integrate into our entertainment centers, and I can even fully do it. No more conventional televisions, no more receiver/amps (maybe a pre-amp for the audiophiles), and your DVD player(s) are built into the computer.
I am pretty sure the main reason movies haven't been released in such a way on flash media is almost 100% because of piracy. If developers can figure out a way to block any sort of ripping, converting, decompiling, key stripping, direct feed recording, etc that could be done to pirate the media then perhaps we will see downloadable movies.
iTunes successfully did this with music, although it's still very easy to pirate if somebody wanted to. I think Hollywood has a lot more at stake and isn't going to make the options available until they have hired hackers and piraters to try to crack the styem for years so developers can make the format even more secure.
I doubt we will see that anytime soon. Either that or maybe the government will start enforcing fines for pirates and people will stop doing it. At $250K per movie all it would take was one fine per pirate to make them think twice about doing it again.