Netflix's DVD model worked because everybody was used to renting movies from Blockbuster. The business model already existed: Netflix just did a better job of it and at exactly the right time. Will you have to change hearts and minds, or will you be simply "doing a better job than Blockbuster"?
It seems like you're considering some business that requires a lot of inventory, low margins, and high-operational costs. I guess I'm making a lot of assumptions.
EDIT: I guess I sound fairly negative. I'd like to add that I have a dear friend who manages to earn a decent living with a small internet-based video game rental service. It's a husband/wife team. They somehow managed to bootstrap the business, earn a loyal customer base, and maintain inventory in their apartment. They spend a few hours per day manually fulfilling orders, adding custom notes/suggestions to their customers, etc. It works quite well for them.