Chaplin
Better off silent
That's why I asked if you were talking about something else, and the response was "VOD" which is what Netflix is.
If you are talking about purchasing a DVD and having it stored on a server somewhere, where you can access your purchased DVD and nobody else can, then I'm not buying that as where the industry is headed.
There is virtually no difference in that and renting streaming video from Netflix, other than the small volume connection vs. large volume connection. Unless you are a collector, there's no point in buying digital media and storing it on your own storage space (itunes model) when you can stream what you want, when you want it. At least to the mainstream consumer (who at the moment, are just fine with DVDs in the first place, and tickled by up-converting DVD players.)
Hate to disappoint you, but that's exactly where it's going to be headed. There is no way in hell that a rental system is going to take the place of dvds. If people didn't care about extras, then why did DVD take off as much as it did? Might as well try to figure out how to improve tape.
The system will be purchasing a DVD or Blu-Ray equivalent online (like Amazon) and then downloading the VIDEO_TS files (or whatever replaces it) to a storage device. Storage is getting cheaper, but it's still nowhere near it needs to be to make downloading the exclusive way of getting movies.
What you aren't understanding is what STREAMING actually means. It is the most expensive aspect of ANY online media. Period. Aside from licensing issues, streaming is one of the reasons why most networks do not put entire seasons of shows online. It's certainly why we don't where I work.
Streaming costs are extremely expensive--streaming 4 episodes of only 12 different shows can cost millions, literally. And you're talking about streaming THOUSANDS of films? Not going to happen. The point of downloading (and buying DVDs) is to have some sort of ownership. That's the difference between renting and owning. If you're happy just renting, then more power to you, but don't pretend to think the market is like that.
EDIT: And I'd love for you to compare the number of people streaming Netflix vs. the number of people buying DVDs. If Netflix had to deal with those kind of numbers, they'd be out of business. Count on that.