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In the case of Blockbuster and Hollywood Video stores, they are concerned about availability, so getting the physical disc returned is important to their ongoing business. But the number of the digital files is unlimited, so what is the drawback of permitting the renter to watch it as often as they like within the 30 day term?
I've been very happy with the quality of the HD movies on iTunes/AppleTV and plan on renting more. It just seems like opening that viewing window up more is only going to be more enticing to the consumer.