DVDs Have Replaced VHS - but why?

I think it’s safe to say that DVD is now the distribution medium of choice for films (and TV programmes, etc.), rather than VHS. Most high street shops, whether selling or renting, stock DVDs in greater quantities than VHS, and some don’t stock VHS at all. This is also true of most online retailers.

But is anyone else surprised at how quickly this change has occurred? Technically speaking, DVDs aren’t that compelling. Sure, they have some advantages: the quality is better, they last longer, they are random-access. But are they that much better? Is the change entirely demand-side driven? Or are there good reasons for distributors to encourage the switch to DVD?