Personally, I think the answer might be a hybrid situation. EG. Offer physical DVD rentals out of an existing establishment that's already successful on its own - like a gas station, bar or grocery store.
So Redbox machines, basically? I see quite a few of them around here.
It was pity stayed his hand. "Pity I don't have any more bullets," thought Frito. -- _Bored_of_the_Rings_, a Harvard Lampoon parody of Tolkein