I own a VUDU and it is great. I don't really mind that pay per view system. Renting movies on VUDU costs about the same as renting from Blockbuster or a store, but I don't have to leave the house. And it is instant.
And with Netflix you only do pay per month... but the selection is limited and the quality isn't that great. As Netflix starts to have more people streaming movies, there cost of a streaming subscription is going to go way up. There is no way they have the bandwidth for that many users to stream movies.