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A couple of thoughts:
Physical media, books, CDs, DVDs require storage, depending how large the collection--lots of storage. For those living in small apartments or simply unwilling to manage a large collection of everything, renting the media is a viable option. In my experience it is also far more convenient. Time is money, and storing, cleaning, digging through collections of CDs and DVDs is time consuming if you have a large collection. While a quick search using a Roku or Fire TV or Apple TV box gets you streaming the movie right away, or likewise with music, it is time-saving and convenient.
ISPs here in the US are well known (fill in your own word for them). They are more interested in selling expensive Cable TV packages and Digital Phone than improving their Internet service, which robs them of Cable customers as people cut the cord and stream video. It is untenable. Competition via Google Fiber or some other competitor is our best hope. I expect the Cable companies will upgrade over time, but right now many places in the US have third world Internet service, mostly thanks to Cable Providers. But when Google Fiber shows up, you see how fast these ISPs change their tune, how much better their download and upload speeds become. It will take time, but eventually we will see better quality Internet streaming.
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