Wick,
While the results of my extensive market surveys have not come back yet, my understanding of rationality tells me the following:
1) People do not know how many movies/games they rent annually - there has never been a need for this information. I sincerely doubt that anything but a small percentage of people would SAY (not actually) they rent more than 2-3 videos/games per month. Therefore people might view this deal as excessive and more expensive than the video store - with poorer selection and service.
2) People who lock themselves into a $222 payment for video rentals at the beginning of the year are generally middle class or higher. These regular folk are demanding - they want to watch the newest movies when they want to watch them. These are the same people who pay $15 to go to a new movie ($50+ for a family of 4). If they are willing to pay $50+ to see a new movie in theatres because they want to see it, they won't be satisfied with not being able to see new releases when they want to see them - even if they are saving a few dollars. Because new releases are somewhat difficult to get from GZFX, people have to request older movies - who can think of 72 movies they a) want to watch and b) are available for watching?
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