Netflix : A threat to the DVD industry ?

I was lately reading an article regarding Nextflix business model and how it has been waiting to change they way the customer will buy DVD to watch movies. Many organizatioins saw it coming, but didnt thought that it would be this fast. With the bleeding economy and people becoming more frugal has given more boost to the Netflix model, here is how it impacts :

- People will start renting out more than buying the DVD - overall buying a DVD is no much value until it is a classic or a signature item. This economy it gives more meaning.

The basic change in the economy has immidiately changed the pattern on how customers were less buying DVD and more renting them. This would have a huge impact on Walmart, BestBuy etc any of them selling New DVD.

Here are my thoughts to tackle them to some extent:

- DVD renting may be delayed by atleast 2 months (For example when a DVD is released, Copyright owning companies may delay the renting online options for the initial 2-3 months)
-Royalty based model : Dig into details of companies like Netflix or blockbuster and charge royalty on each of DVD being rented out