There was a whole industry for production of the cassettes, warehousing, distribution, retail space, service personnel which all cost a pretty packet. The cost now of putting the post-edit file on a server with a web payment has gotta be virtually zero. Any schmuck can serve a torrent to the world for the price of an internet connection -- sure, that's the baseline, and it relies on others paying the (small) real costs, but still.

Without the need for Blockbuster retail stores, that's got to cut the price in half. Being able to keep your whole back catalog in a computer rack instead of buying warehouse space in 50 different countries has to halve the costs again, surely. Account for actual material costs, factories to make the cassettes, write them, produce the cases. What are we down to now ...

$1 a month for buying 6 new movies sounds more like it.