The demise of Blockbuster was not a big surprise to anyone. Netflix was the first to make the huge splash offering digital download streaming, but they are certainly not the last.
Our standard cable and satellite companies all saw the trend and created substantial direct view divisions to try and stem the tide. However, 8.00 a month is a price point that has pulled a lot of marginal tv watchers over. I say, marginal, because Netflix offers older offerings. If you're about the latest and the greatest, you'll likely find Itunes or another digital delivery system more to your liking. The market will settle with new players finding niche entertainment offerings. The net net of this whole discussion is that by 2015, a much higher percentage of people will be "digitized" and not tied to the big clunky family monster screen. It's happening faster than many had predicted. I do believe however, family time will still have everyone gathering around a big screen to watch a collective movie together. But the spare tv in the bedroom or den has been replaced with a tablet in the backyard, the basement or anywhere someone cares to be within the wi-fi network.
Here's the article referenced Hollywood Reporter