My family doesn't have the Fri/Sat night watching habit as much. We look to Netflix as a replacement for owning a DVD library. For $25/month we get 4 DVDs. For us, this is perfect. We tend to have 2 DVDs on hand at any given time which is plenty. We did stop by the video store to pick up a DVD. But the next day my wife sat in traffic for 45 minutes to make it back to the store in time to avoid a late fee. With Netflix we drop it back in the mail, when we are ready.
Also: I complained about the 4+ days it was taking to go to/from California and Maryland. Suddenly, my return address became Gaithersburg, Maryland, and round trip was 4 days instead of 10. Not sure if you have to request it, or whether the Gaithersburg plant just opened.
Another Netflix benefit: We get to queue up movies as we think of them, or see them recommended (a great system). This means that we don't have to think about 'what's next.' This is the key benefit in my mind over video store browsing--which I've ALWAYS hated.