I would recommend reading "The Long Tail: Why the Future of Business is Selling Less of More" by Chris Anderson.

It is a great breakdown on how the digital world is making available the content that you are discussing. It also explains why the movies that you are reffering to are not on the shelf. They are simply not profitable for the traditional retailer to carry.

You are right, there is a market for your type of product, just not in a retail environment. In this book he discusses the statistics behind it.

I too worked for AT&T, and understand that alot of individuals either did not understand the technology to download movies, or had morals and would not burn them illegally, or maybe just could not afford it.

However, I have been to Wal-Mart and seen the movie bins that you are talking about, and they sell for like $5 a piece, about the price of a rental.

I think the idea has potential, and as others have said, a solid business plan should be able to help sort things out. You may have to find an alternative. The Kiosk idea may be something to explore.

Best of Luck.

Wayne Towner
Skid Fix LLC
www.skidfix.com
Making Every Step, A Safe Step