From the Fark thread about this:
"1. Create new industry (DVDs by mail)
2. Do it way better than anyone else
3. Drive nearly all the competitors out of the DVD rental business and have a near-monopoly
4. Build up over a decade of brand recognition
5. Throw it all away.
6. Focus instead on delivery system that has tons of competitors and burdened by content providers with draconian licensing contracts"
That about sums it up