I was reading an article that explained how Netflix and later on Blockbuster Online got started and how they became popular real fast. I found it interesting that there is a section of the US Copyright law that would allow me to create such a service as long as I physically have the dvd and do not alter it in any way.

In reguards to the other questions, It would be Video on Demand and ran in a similar fashion how netflix is ran. The service would be fully bitcoin powered. I would of course have to come up with a system where you pay to acess the site to view the movies, probly like a monthly thing. I can host the files right on my current server, just need to fetch me another domain address.

If this becomes poular I see alot of things happening. The first would be the downfall of Red Box and other video rental stores(like Blockbuster). True, Netflix would become the direct competition. It would come down to renting in credit or renting in bitcoins lol.