QFX is a company to be feared, page-7

I think streaming is more profitable than DVD rentals.

DVD rentals you need to hire many people to do DVD exchanges PLUS postage which is going up from 70c to $1 (return discs is DOUBLE the cost). May be some insurance money due to DVD damages.

Than you need to set up centres in each state (office rentals are expensive) eg you can't expect people in Perth sending DVDs to Sydney and back... 1 week turn-around time who will subscribe. You need massive spaces to keep those discs.

Besides Australian Post is planning to cut services to only 3 days a week (excluding parcels).

Netflix only do online and they get 1 million subscribers so quickly.