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DWB makes great points and we have seen the same phenomenon, which I think Kristin sums up eloquently - price/perception of quality. I agree with both of them on exclusivity being key regardless.
Regarding DRM - these days you can use DRM in a manner that is "invisible" to the surfer so it is not like the old days where it was just a pain in the ass. You can also use it to track traffic and re-market to ex members so it can be very useful, imho.
On going streaming only, there is a catch-22, because if you do it then even if the surfers don't complain - which is going to happen, but usually only those leeches that are trying to dl the entire site so whatever... but a lot of quality review sites, with killer traffic, will mark against you for doing it so that is an issue if you want their traffic.
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