CNET News.com reports that "The DVD swapping service Peerflix is closing, according to an e-mail sent to users this evening. The service enabled its members to request DVDs from other members. It let users print prepaid fold-it-yourself mailing containers on 8x11-inch paper, and charged a fee for each swap."
This doesn't surprise me a bit. If you don't want to keep the movie, but just watch it, then swapping movies doesn't make sense when you can rent them so much faster and easier from Netflix, and no one can compete with the selection Netflix has.
However, I am sad whenever an entrepreneur fails.