Software
Most software nowadays uses the internet to transfer upgrades and virus definition updates are all now done over the internet. Downloading over the internet have gone as far as being able to be download and install in the background without the user needing to intervene. As well as that it allows them to use the computer while the software is being downloaded and installed. Most new programs and program upgrades are usually downloaded off of the internet. The good point about this is that updates are usually free because the cost of them is so low but also they can be used strait away and most of the time automatically. All software should be transferred in this way but the reason they are not is because of the size of the file, typically it takes a while to download even a small file. Another reason is because no matter the size of the application the user generally would want a physical copy of the the software and manuals.
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Music downloads have become very popular, originally it was downloaded and put onto an MP3 in the relevant format. The reason for the large popularity growth was because to the vast number of peer-to-peer file sharing services provided where they could get expensive music for next to no money. This caused legal action to arise from the industry and has reduced the peer-to-peer activity, causing legal download services to really become more popular than anything else. Apple Inc. was one of the first to launch this idea and it has allowed them to sell millions if not billions of songs and albums legally on it's iTunes service. Apple does not tend to use MP3 anymore, they use MPEG-4 advanced audio coding (AAC) which is a high quality format that contends with CD quality.
Video is starting to follow in Audio's footsteps in the way that there are numerous sites where it is possible to download films while breaking the law. Like audio the film and video industries are starting to provide legal downloadable content. The issue with video's is that the size of files a very large compared to audio files, even in compressed form a quality video can use up many gigabytes per hour. Video's are able to be streamed on the internet to enable people to watch videos when enough data has been buffered. The effectiveness of this method depends on how quickly the video is buffered, if it takes too long to buffer then you will have to wait a long time for the video to start.
Books
Many books have been transferred into electronic form, these can be downloaded quite easily because of their small size. There is another section explaining this... see 'Net Books'.
Downloading Goods and Services
There is quite a long list of items that I have downloaded off of the internet but i am only going to keep the list fairly short.
Downloading Music on iTunes
Downloaded Software from Adobe
Downloaded Software from Microsoft.
This is a short list of some of the items that I have downloaded off of the internet. The reason I downloaded these off the internet was because they were easy to find and very convenient in the way that I did not have to leave the comfort of my own home. Also after downloading I did not have to wait around to receive the software and I could apply it straight to my PC or in the audio's case I could listen to my music straight away.
The problems you could face from downloading software off the internet is that you will not have any proof of where you bought the product just in case you are asked under serious circumstances and also if something goes wrong then there will be a problem in the fact that there will be no instruction manuals to help with the found problem.