RedBox at McDonalds is $1 a day. RedBox is even at many grocery stores and Walmart locations.
I seriously doubt I'll consider spending $3 MORE for 24 hours considering the McDonald's is walking distance from my house!
Unless you live in the middle of nowhere, geez, what a rip-off.
This idea is gonna sink like a rock.
Are you suggesting that most of the population lives in walking distance from a RedBox, doesn't care about weather, and doesn't mind RedBox's minimal selection?

I live in a major city, and would sometimes use RedBox if there was one really close. But there isn't.
I watch movies during my commute to and from work. I have about a half hour+ to watch. At times it will take me a few days to get through a whole movie. 24 hours is no good.
Im not buying the "24 hour time limit" rumor
waiting to see next week...
I take ALL of these details--even the very existence of rentals--until they are official. But meanwhile, many people make the mistake of assuming that THEIR needs/wants are exactly the same as everyone else's. For example, while I do hope Apple persuades the content owners to ditch the 24-hour limit, I still think the venture can succeed even if they lose the half-hour-a-day commuter movie market.
I don't want subscriptions (neither online nor Netflix-style). But that doesn't mean subscriptions shouldn't exist and are doomed. I don't speak for the whole market. Why do people who don't want iTunes rentals (which I DO want) assume that they speak for the whole market?
For anything > 1 movie a month, Netflix absolutely kills Apple here. I'm pretty sure for $4.99 a month Netflix gives you 2 DVDs (i.e. far better quality than iTunes) plus 5 hours of downloaded film.
So, Netflix offers vastly greater selection, much higher quality via DVD if you deal with the mail transport, and even more downloaded film time.
I look forward to Netflix's download service improving one day. That, or per-movie rentals, might bring me back to Netflix. In the meantime, though, Netflix's selection for downloads is limited (as iTunes will likely also be for the timing being). It's nowhere near their whole library. And it's Microsoft-based and incompatible with Macs. (I'm aware that may change, and I hope it does.)
And again, don't assume your wants are the same as everyone's. Some people, sometimes, want to watch a movie NOW. Mail doesn't provide that.
Netflix is a great option. So is RedBox. So are local video stores and libraries. So are PPV and VOD. So are Microsoft-based download services. So are street jugglers.
We don't have to give those up--and Apple doesn't have to drive them out of business--in order for iTunes downloads to be a nice option that many people WILL appreciate having.