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.
The most delightful day after the one on which you buy a cottage in the country is the one on which you resell it. -- J. Brecheux