How much for digital?

The movie studios are starting to get excited about renting movies digitally (via Apple and others). The pricing seems to be modeled on Blockbuster (+). Figure $3 a rental, another buck or so for HD. That seems 'fair', because it's in the same range as we're used to. But wait. Blockbuster buys DVDs for $15 or $20. then rents them out 30 or 40 or more times each, meaning each rental costs Blockbuster fifty cents. Not to mention rent, surly clerks, cost of capital, advertising, etc. Or, in the case of Netflix, stamps. In the case of online rentals, all of these intermediate costs immediately disappear. Gone. So, why try to mimic the current model when it comes to pricing if the costs are mostly gone? (Seth Godin's Blog)