They aren't competing with Netflix. They are competing with all the other movie on demand services.
Netflix streaming has a poor selection of movies. Netflix dvd in mail is great but there are days of delay in mailing them back and forth.
Netflix is like an all you can eat buffet and this lionsgate is like a streak house. You wouldn't tell the steakhouse that thier food is overpriced because the golden coral sells all you eat for 7.99.
It think in practice it will. I don't think that difference in type VoD vs streaming library is as well defined in most people's minds as it is in yours. Same for attaching (much) more value to the one per movie as you do.
You're not wrong about the steak thing, but cheap price plus "unlimited" goes very far in practice I think. And in fact has judging by Netflix performance
Netflix streaming has a poor selection of movies. Netflix dvd in mail is great but there are days of delay in mailing them back and forth.
Netflix is like an all you can eat buffet and this lionsgate is like a streak house. You wouldn't tell the steakhouse that thier food is overpriced because the golden coral sells all you eat for 7.99.