The (legal) streaming and on demand options in Australia are very limited, though I guess that's slowly changing. Video rental stores still survive here, and there's a Blockbuster a short walk down the street from me. AFAIK, it isn't going anywhere any time soon, though all the US ones are closing. I do rent movies there sometimes, but not often enough to match the number of movies I see on planes.
What about Quickflix?
I don't think it's as popular as Netflix is in the US, for whatever reason. Could be that the library of movies that they offer for streaming isn't as large, or something. Also, many people here have internet plans with a data cap, so you can only download so many GB per month. Not as conducive to streaming large files all the time.
For my own part, I don't rent movies often enough to make it worth it to pay a monthly fee for that sort of thing. Cheaper for me to just go to the video store (which again, is just down the street from me) when I want to rent something.