Not mentioned is any thought about the cost of making the discs and disposing of them when they wear out. I'm betting the netflix model allows more people to efficiently share fewer physical discs than the blockbuster model.

What is stupid is that the movies could be delivered completely over the internet with no physical disks at all but this hasn't happened despite the technology existing that would make it trivial to do so.

I'd say itunes movies is as green as it gets so far.