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Originally Posted by Jyster
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As the article points out, the shift isn't exactly their choice. The studios are tightening the screws on subscription movie streaming precisely because disk-based sales are drying up. They would rather have ppv digital rentals and sales.
They originally signed up for digital subscription services because they thought they would be limited to PC viewing (a niche) instead of migrating to the "living room" (their bread and butter). Now they have to deal with an entirely frictionless distribution channel and are looking to strike a balance between the predictable (but stagnant at best) Cableco income and the need to tap new business models to make up for the decline of the old business model.
Not unlike the Big Publishing Houses who expected ebooks to remain a hobbyist/techie niche and were caught offguard when they became a mainstream product appealing to the most prolific narrative text buyers, torpedoing their big-launch sales-driven business model.
Both industries are and will remain in flux for years to come.