Not the niche stores. Unless Redbox, Netflix, and their Canadian cousin Zip-It also sell independent movies and documentaries out of those machines, niche stores will always be here, and will do great business. A machine cannot replace a human being as far as customer service goes, no matter how efficient it is.
EDIT: Also, there are other ethnicities to consider as well: many if not all Asian and East Europeans, plus the Caucasians that like Asian and East European cinema/TV are not going to use these services if movies from their respective nations aren't in these machines (this goes double for those from Arab nations too.)