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And people forget that Netflix's original model was also sneakernet. Before streaming was viable they would physically mail you a DVD, which when you were done with you had to drop off someplace or physically mail back. The difference with Netflix was that if you didn't give the disk back they'd whack you for a (rather inflated, as I recall) purchase price for the movie. DIVX would just disable your ability to play it until you coughed up, obviating the need for a return trip for the disk.
If you had a subscription, you could have a Netflix disc indefinitely. You just couldn't rent any new movies/shows until you returned it.
If you cancelled your subscription and kept the disc, then yeah they hit you with a "higher than cost" fee.
And it was a pretty great deal when you watched a load of movies, like my family did. We were very early adopters. Queue over a hundred titles deep and it never shrank because we added as fast as they came.
Also unlike modern day streaming, they didn’t have to worry about obtaining the rights to the movies. They could just buy the DVD from any retailer.
So there were no platform exclusives to worry about.