I acquired a DVD rental business almost a decade ago, and Jack Sparrow DVDs were already flooding the market then. Kahit sobrang pangit pa ang quality nang Capt Jack noon, the P50 cost per disk have already killed the rental business. I think I bought the shop from an ad here in PinoyDVD rin back then.
I operated it for several months, and total rental was probably only less than 100 for the entire time (swerte na meron 1 rental sa isang araw). And the shop was located at the g/f of a low-rise residential condo building nun.
Surprisingly, selling Globe/Smart load at that time was just enough to pay for rent and salary of 1 staff. Overall, lugi yung biz, but not much. It was still worth the experience, and at least I was able to provide employment for 1 person for several months.
These days, Jack Sparrow disks are better quality, and there are HD downloads widely available. If you'll do it for the love of it, go ahead. But don't expect it to send your kids to school. Like any other business, location and target market will be key. Maybe best to tie up with a home theater shop, to entice business on both fronts.
Oh... and I haven't even touched on permits, etc.