Moral Hazards Amok

Tough Times for Netflix - Barron's

Grabbing a disk from a kiosk on a Friday while you're in Wal-Mart shopping for pet food is convenient and easy. Returning it back on a Monday when you have a million other things you need to do is often a significant investment of resources and a pain for many of us.
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"BTW, the 'saving gas' argument is a bit bogus: nobody is expected to hop into the car for a 5-mile expedition to the nearest kiosk. The whole idea behind a kiosk is to snag the consumer while (s)he's already out of the house ... that's why they're located in malls and retail stores..."

Tough Times for Netflix - Barron's

Until you put a Redbox right next to my mailbox I won't be interested. The value that Netflix adds to the customer is that we don't have to burn gas and time returning the disks. Also, I doubt that Redbox has a million selections in their kiosks.

Not a significant threat to Netflix, imho.