He doesn't say that he <i>knows</i> that the video rental stores are going out of business. He says about 'digital convergence in the set-top box', that "All that's going to do is put the video rental stores out of business and save me a trip to rent my movie."  It's not hard to see that hooking the Internet up to a television saves will allow you to have video delivered to your television over the Internet. You'll notice that he's poo-pooing the digital set-top box in that quote, not praising it.