Source: detnews.com

I have been preaching this for a long time - the Netflix model is very short term oriented as very soon a Internet delivery will take over the rather "silly" idea to send around DVDs via Fedex. Now Netflix has made a sweet deal with Tivo:

"... "We have a strategy to deliver movies across the Internet, and TiVo is one step in that direction."

Daver declined to specify a definitive release date for the service, but Netflix has said previously that it will have some digital distribution of films by the end of 2005. In the past, TiVo has said it's working on a video-on-demand service, too, but both companies have said they did not expect the fruits of those labors to generate significant revenue in the short term."