When I watched the movie for my assignment a few weeks ago, I found that renting the movie from an online carrier was easier than having to find the movie at a local dvd store. I think the VOD movement will eventually replace the DVD, as you can order or download the video at your convenience, pause or restart the viewing if you are interrupted, and view it anywhere you are. It is a similar progression in music, where I can now download a song or album often for less expense than purchasing the physical format of a CD. This is an increasing return for the movie industry, as it migrates away from a "physical" delivery system.
I think VOD enhances movie going based upon convenience for the user. it retrieves the idea of having you entertainment with you wherever you are, such as the days of the portable radio, and rekindles the idea of podcasting in a visual format.
