I remember one of my first jobs working in a video rental store. Back then, places with shelves of VHS tapes were a dime a dozen - but large chains like Blockbuster along with the collapse of VHS prices (due to the "new technology" of DVDs becoming mainstream) put an end to that.
I see online content delivery as the next "new technology" going mainstream - its fast and convenient. It is threatened by broadband bandwidth caps, but in the end I think even the cable, satellite, and telecommunications companies will loose out. They will have to make most their revenue in providing bandwidth and speed. Also, like the networks, they will have to find a new way to deliver programming on-demand to users.
As this happens, the TiVo will be reduced to a dedicated box for downloading and storing this on-demand content and thus will struggle to compete against computers (and possibly TVs with embedded computer technology).
TiVo may survive for a while, but if Blockbuster doesn't get into the online content delivery business and slowly phase out most of their brick and mortar stores they will most likely fade away.
Hey TiVo (Shannan) how about a TiVo with a built-in BluRay player or even an external one that plugs into the USB2 port? How about support for playing back remote .avi, .mpeg, etc? The remote mp3 support from an external server is nice, but video can't be all THAT hard. Just tell us what codecs you plan to support...
Whats the cost and will people with their mail delivery service get unlimited streaming like with Netflix? I currently get movies from Blockbuster online but they have upset me by constantly changing the service. First i could get 3 movies at a time with unlimited free in store exchanges, and as soon as I returned those movies in the store i would get new ones sent out to me even if I exchanged movies in store. Than they limited my free in store exchanges to 5 a month with each one after costing $1.99. Now they give me unlimited free store exchanges again, but they will not ship me a new movie until I return that exchanged movies. I also subscribe to Netflix, but only for one movie a month, i mostly use them for unlimited streaming over Xbox Live. Although Netflix streaming service works well their library could be better. However, Netflix send me the movies in the mail very quickly. I can send a movie to Netflix and return a movie at Blockbusters store the same day and my new netflix movie will arrive in the mail first even though they need to wait for my movie to reach them through mail and Blockbuster has already had my returned movie a good two to three days before Netflix has received theres. If Blockbuster wants to stay open they need to offer more advantages in their services rather than take them away, grow their streaming library, include all "Blockbuster Exclusives" in their streaming library, send movies out the very same day they're returned in the store, and creat more partnerships like Netflix has.