[Magnus3x]

You make some great points, but I think some of the major players in the online DVD world would beg to differ. DVD's are surpassing the video market by far as you know..and a great point was brought up about DVD owners and broadband subscribers. For the cost of three months hi-speed you can get a pretty good DVD player.
Selling DVD's on-line is a great service to those that don't want to go downtown and hit a videostore and there is a huge market.

One thing I found with my toy store is that porn traffic (content based) does not convert as well as targeted search engine traffic, link list traffic and targeted paid advertising.

So the guys jerking off to choppy 56K modem movies are probably not your target market.