I mean, I know that I get a physical DVD, but there’s no reason why the 3 out at a time policy could not work for digital rentals. When you’re ready to watch the next thing, delete one of the previous rentals in your library. It also doesn’t beat Netflix on price. For 17$ a month I get to rent approximately 14 movies a month from Netflix. That same 17$ through iTunes rentals nets me 4 new releases or 5 old releases.
In addition, Netflix just opened up the ability for me to download stuff and watch it on my laptop, through my web browser, whenever I feel like it and as often as I want. My laptop is not as portable as an iPod, but that’s not the point. Netflix is already doing video on demand for its customers and they’re giving it to them gratis, as part of their packages if they have more than the most basic of plans through Netflix.
Apple, you’ve got a long way to go to beat Netflix at this game.