VOD through internet and digital videos in general will be the wave of the future anyways. Just like CDs are slowly but surely becoming extinct to the likes of iPods, DVDs will too as people will be able to stream whatever movie they want to see when they want to see it (and with Tivo/DVR there's already some of that). As it was, the delivery rental model that Netflix started had been the next wave after brick and mortar stores and Blockbuster just took waaay too long to adapt. By the time they had their similar service running, it wasn't a matter of gaining customers that way or keeping customers they had but efforts to try and take Netflix customers including customers Netflix had already taken from them - not the position you want to be in.
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