Yep, just like buying a DVD at any other retail outlet except you don't leave home to do it...people buy DVD's that they've already seen at the movies...people buy DVD's of movies they've heard about but haven't seen yet...it happens all the time...Blackhatman said he likes the idea...
2.6 million people not $2.6M...also, the way I read it is one cost only for buying the DVD, not VOD cost plus DVD cost IMHO. No downloading, its like pay per view and they send the DVD in the mail.
Other cable providers and satellite will probably get in on the action too IMHO.