The point from the article provides the impression that Jobs believes that the internet will defeat blu-ray in terms of movie collection. What this means is Jobs believes that renting / purchasing movies in the form of internet download / stream will become the dominant form of home movie viewing.
Steven Jobs is wrong, for now.
In the article, Jobs compares the post-CD era to that of the post-movie disc. But there is a difference between audio recordings and movies. The quality of the audio recordings sound pretty much the same, while blu-ray disc offer high quality video than internet-streamed / rented movies.
Jobs’ sentiment might become true a few years down the road, but in such a rapidly changing technological world, anything is possible.