I pay for netflix and Amazon Prime. In fact I would pay 2-3x more for netflix if they had everything. (Not even new stuff, but old stuff)
I don't buy dvd's because the value is not there for me. If I am just going to watch something once or twice, its worth ~$1 to me, not $20 like a new dvd.
I don't go down to blockbuster/Red Box because the negative utility of getting in my car and going to a store is worse than just downloading it.