Blockbuster, the largest retail chain for renting and buying videos, is scrambling. Watching movies at home has become as natural as watching TV shows, and internet speed is steadily increasing. The two forces have created new opportunities for connecting viewers with the videos they want to see. New industry entrants grabbed these opportunities as new entrants always do. After all, why go after a leader where the leader is strongest? Netflix provides movies on-line and by mail, with an Amazon-like artificial intelligence that helps to inform a member’s choices. Redbox offers dollar rentals in kiosks located in grocery stores, a disruptive business model innovation that captures spur of the moment purchase decisions. Both business models increase convenience. Still other kiosk competitors exist. U Flick, a start-up in Madison, Wisconsin, for example, places kiosks on college campuses. The niche succeeds because they’ll offer films…