This tells me that if the big daddy of the video rental business (which is a lean, well run distribution machine from what I hear) can't turn a profit, rental outlets need to find a way to reduce there distribution and brick and mortar costs. Direct to home video downloading is still many years away because of bandwidth issues. IMO, there is going to be a pick push to digital kiosk downloading so they can have smaller stores, fewer employees, and not have to deal with the headache of stockpiling and distributing (and eventually unloading) thousands of DVDs/VHS tapes. The stumbling block: creating the critical mass of owners of PVPs to carry those movies from kiosk to home in order to sustain the stores.
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