Damn that video dragged on. I can't stand South Park. Gave up 1/3 the way through. Yes, point made - Blockbuster is outdated. Yawn.
As for the streaming/disc-by-mail service, Blockbuster could have done well if they had been a little more proactive and had those disc exchange plans when they still had a lot of stores. When I finally signed up for the first decent plan they offered my store closed not 2 months later
There are still huge flaws with the other methods. Netflix streaming has a crap selection for the most part and includes almost no newer releases. And while their disc-based service has a much bigger selection, it has the 30-day hold on a lot of new stuff which is annoying. I finally cancelled that the other day (kept the streaming of course). I have never used Redbox but it seems like a ripoff to me, especially for games (where you get charged every day you have it).
I would have loved a Blockbuster plan where I could get movies and games with unlimited exchanges at a relatively convenient store. At this point I'd pay upwards of $15-$20 per month for something like that. And yeah, I know they do have something like that - but with the closest store 8 miles away it isn't convenient. I really have no good way of getting new movies/games any more - so I just don't. I may be old fashioned, but I did actually prefer browsing the shelves for something to watch and getting an actual disc (the concept that South Park video ridicules). And when they had a decent number of locations it wasn't too much trouble to stop in and do so.
And let's not forget that all that game renting led to lots of excess stock that they then sold to us dirt cheap via the B1G1 sales - probably the best year-after-year sale I've taken part of during my whole time as a CAG.