As much money as Hollywood makes on DVD (and now, Bluray), there's one thing about it they still hate. Namely, the fact that you get to watch your copy over and over again without paying them again each time. It's not fair, dammit!
Even worse, you can loan your disc to a friend, without your friends paying to see it. Or, you can sell it back to some record store that deals in used DVDs. It's like highway robbery! You might as well leave these studio execs bleeding in an alley, you cold-hearted bastard!
"Before DVDs, I had four large bundles of money to juggle."
They hate it so much that they've been trying to devise a system that will lure the consumer away from, you know, actually owning movies and watching them when it's convenient, to a system where the consumer pays, every single time, to watch the movie, at Hollywood's convenience.
The first attempt was that venerable cable staple, pay-per-view. Remember when you were a kid, how PPV got "all the hot Hollywood movies FIRST"? Remember also how it cost about four times what it cost to rent a video? Remember how you laughed in their face?
Remember the laughing?
Then they tried to inflict DivX on humanity. DivX was a disc-based format which was supposed to rival DVD. The movies had no extras, didn't display in the proper aspect ratio, and literally expired after 48 hours. The idea that anyone would use DivX lasted just slightly longer.
The latest attempt is to put a squat plastic box on top of your TV that will feed you movies via download. So far, Vudu, Apple and Netflix have jumped into the fray with Blockbuster not far behind. Unsurprisingly, they're expensive, DRMed out the wazoo, don't cooperate with each other and have crappy selection. We're surprised the things don't self-destruct and blow up your house if you try to cancel.