My bet is that it wont fly. Do any of you remember DIVX? No not the codec but the distribution scheme that was adobted by circut city in the late 90s? The basic premise was that you payed only a few dollars for any dvd but then had to pay a few dollars every couple times you watched it. The whole thing was a big failure, no one bought them and a lot of money was lost.
Now this is a little different, I don't know but if the self destructing dvds don't require new specialized DVD players like DIVX did and enough movie companies get behind it then maybe it might just get some market share initially. But long term I don't see how this could work, would you want to waste gas and time running back and forth to best buy to pick up another copy of a DVD you already have owned?
I also see this leading to an increase in bootlegging and illegal distribution of copied DVDs. If the public doesn't want to deal with the movie industries stupid practices they will just do what they did to the RIAA and start getting more and more of their movies online.