This is motivated by the fact that I'm in Australia and our broadband sucks.
Netflix send a whole heap of DVDs through the mail, so they're trust you not to rip them and distribute copies. If there was a massive content distribution network with kiosks in shopping centres where I could put in a DVD-RW or usb storage device (or pay for a blank DVD) and pay for the latest movies and TV shows I'd make a good amount of use of it.
It's mostly about saving bandwidth, but also trying to provide an extremely fast and convinient alternative to piracy. If that existed, I'd probably use it. I already buy TV shows on DVD if someone I trust recommends them highly enough - a much better experience for me than watching them on TV, no adds, pause, rewind, etc...
We get some shows quite a bit later here, and a few of the good shows only come to pay tv. So the timing would be the key. As soon as the TV show is aired anywhere - bam - available from the kiosk. The premium for being ad free and not getting it on the studios timeline might more or less balance out with the savings in packaging and distribution.
Same with movies. Theaters wouldn't be happy, but we're rapidly approaching the days when people will go to the movies for the theater experience and otherwise just get hold of it online (one way or another).
As a bonus idea, if the kiosks kept records of what you'd bought then buying a whole series through the kiosk gets you a big discount on the DVDs if you want the physical media since you've already paid for the IP at the point.