For me, it's mostly a price issue.
I knew a guy who owned a video store for several years. He made a few dollars on each DVD sold, and did fairly well. The problem was that Best Buy started using DVDs as "loss leaders", meaning that they are priced under the store's cost. Of course since he only carried DVD, VHS, and LD business started to suffer since he couldn't match those rock-bottom prices.
He closed the store about two years ago, and stated making real money - he opened a porn video/toy store.
