It's incredible how myopic this article and many comments are...
- World median income is about $100/month. So "most people" probably can't afford a computer, much less a DSL internet connection to their home. They probably can, however, afford a crappy TV and a crappy DVD player.
- I'm not sure that optical disks are necessarily better than flash drives. They can easily scratch or break. Plus, it would seem that BluRays (which would beat flash drives for the data capacity/price) were crippled by their DRM, and we won't be seeing them used as general purpose storage any time soon. And a crappy USB DivX player is even cheaper and more sturdy than a DVD player (probably because of the lack of moving parts).
- The only reason streaming exists, IMHO, is because the content publishers want to control the way that content is being watched and they especially don't want you to share it by yourself. Because otherwise there's no point for streaming, since you can just download the video bits in "chronological" order and watch it as you download it, assuming your bandwidth is sufficient. That's actually what your browser does when "streaming", it's just that you don't get to keep the video file as it's kept in the browser cache. And if your bandwidth is NOT sufficient, then when downloading you just have to wait until the time left to download is equal to the video duration. FYI, a 700MB movie can be downloaded in 90 minutes if you have a bandwidth with and average of 130KB/s. So in theory, even a 56K (28 hours at 7KB/s for 700MB) is going to be faster than snail mail (of course you won't like the film download hogging all the bandwidth, and there's another issue if data transfers are expensive for you).
- Netflix (whether rent-by-mail DVD or streaming) is only available in a few countries, the rent-by-mail DVD system would probably be illegal in many countries (that's probably one reason why Netflix clones haven't popped up in every first world country). Movie streaming services in general suck, even compared to regular DVD rentals, and it just gets laughable when trying to compare the diversity and quality of service of streaming services compared to "pirate" sharing systems.
- I'm willing to bet that the most profitable system for non-scarcity systems like digital distribution is a "pay-what-you-want" system (or at least a system where your average consumer considers the purchase "cheap"). Case in point : Humble Bundle, GoG and Steam. (Oh, and content distributors shouldn't insult our intelligence by trying to sell us a film download for more than a movie ticket.) But of course the MPAA won't release their control because that would be their end, so they are going to go on, kicking and screaming, until they are finally completely irrelevant...