You sure this is a licensing thing? Maybe they are just putting spin on it, but it sounds like they are saying they were taking a loss on the DVD side of things (or just making minimal profit) in anticipation of DVD's going away, and have discovered DVD's aren't going away as fast as they planned.

I mean, really, post is something like $0.40 these days. Unless a postal service gives them a price break, the $2 DVD fee is entirely consumed by the cost of mailing you (and you sending back) 2.5 DVD's per month.