Final answer:
The estimate of customers leaving Netflix was off because of consumer preference for physical DVD rentals from Redbox and other substitute services leading to sustained interest in tangible media. Additionally, not all customers had access to the high-speed internet required for quality streaming, adding to the continued relevance of video stores and kiosks.
Step-by-step explanation:
The question pertains to customer behavior and changes in the digital movie rental market. The inaccuracy of the estimates of customers leaving Netflix can be attributed to a resurgence of interest in physical DVD rentals and the availability of alternate streaming services. Consumers displayed a preference for Redbox kiosks, which were conveniently located for a significant portion of the population. This indicates a continuing desire for physical media and demonstrates that, despite the rise of digital, proximity and the tangibility of DVDs still held value for many customers in 2012.
Moreover, the estimate did not account for the fact that not all customers have access to high-speed internet, which is necessary for streaming HD content. Quality of service is dependent on internet speed, and this factor could deter customers without broadband from relying solely on online streaming. Thus, video stores and rental kiosks provided not only cultural and business value to communities but also served as an important service for those with limited internet access who still wished to watch movies in HD or access content without digital means.