With the inevitable embracing of streaming video as the choice of consumers, Hollywood is in a very difficult situation. While they are slowly beginning to offer Internet distribution, the more they grow it, the more they alienate their old partners selling DVDs in their retail stores.
Financially, Hollywood makes more money on their DVDs than they do in the theaters. Consequently, the studios are slow to get the large retailers made at them by selling the streaming downloads directly to consumers.
If I was a retailer, I would know that the handwriting is on the wall. There is no way that Hollywood can buck the consumer drive to use this as their preferred way of buying or renting movies.
If I was the retailers, I would begin as soon as possible to get download kiosks in their stores. Get people used to using them and offer the alternative before it becomes the major choice people use. Another thing they'll need to know is that they will never have the market they currently have with DVDs ever again.
Right now retailers need to be tackling these issues, not waiting until there is a huge gap in their sales before dealing with it.
One other thing they should do is look at all their current DVD space and think of what to put in its place in the future. It will be a much smaller section not too long from now.
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