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I think it's mostly because of the economy. I know of plenty of people who, a few years ago, would buy DVDs every single Tuesday -- even ones they hadn't seen. I doubt many people have the expendable (or seemingly expandable) income to do that today.
Some great movies already mentioned. Here's a few that I liked a lot: "The Staircase" (really a mini-series, but addictive), "Overnight," "Off the Charts," "Inside Deep Throat," "Atlantic Records," "After Innocence," "Brother's Keeper," "The Hobart Shakespeareans," "Bukowski: Born into this," "Touching the Void," "God Grew Tired of Us," "Ayn Rand: A Sense of Life," "Young @ heart," "Waco: The Rules of Engagement," "Little Dieter needs to Fly," "Margot," "Z channel," "The Loss of Nameless Things," "Cinemania," "A touch of Greatness," "In the Shadow of the Moon," "Nobody Listened" and one of my favorites, "Tom Dowd and the Language of Music."