From what i read in the Schamus & Wyatt both VOD and home videos essential attempted to provide the same utility of getting films in the hands of cult fans that follow the genre they fall into. This allowed many indie films to flourish at the time and were very successful doing so. I feel the major problem that was shown in the home video model was they were spread too thin trying to produce and distribute more films than they were capable of doing so at the time. The major difference between home video and VOD is the massive cost reduction of distribution. With VOD having access to streaming and monthly charges to internet accounts, they are able to more efficiently make profit.
After reading the web article I feel that VOD provides more positives for independent film makers than negatives. Given their low production cost and inability to compete with the big title blockbusters VOD provides a medium for which they can cover their cost and occasionally thrive. It also provides the opportunity for them to reach an audience that may normally over look the film in theater. As for the issue of overcrowding, the internet has also provided the solution to that with a simple search engine that allows you to filter out the movies you know you aren’t interested in, where as searching the endless rows of VHS tapes it was easy to feel overwhelmed by the numbers.