I'd say go for BD player as it's much affordable now (it can also play your current DVD collections). Also, the BD movies have gone down in price, many are selling below $15 & some even below $10. PQ is dependable on individual films but in general most of the recent, latest & not too long ago films are really good.
NMT (popcorn, etc) is the cheapest & cost effective. Software contents can be downloaded. The only drawback is you need fast internet speed & patience for downloading esp if you want the highest PQ at 1080p. Very hassle as compare to BD player. Just my 2 cents.