I remember when Netflix started and some IVRs said it wasn't a threat "because our customers don't have the Internet" and when Redbox machines started to pop up some said "our customers would never rent from a machine".
My point is that what might not seem to be a threat today might be eating your lunch tomorrow

I agree, of all of the formats to watch a movie, I believe Video on Demand will eventually be the demise of video stores, netflix, redbox and any other antiquated technology. Look what Itunes has done to the music retail industry. But for Sept 2009, video on demand is not at that point yet. Therefore, I will take a wait and see approach to this test run on dance flick.