At last, we can legally download movies from the internet.

http://www.nytimes.com/2006/04/03/business/03down.html?_r=1&oref=slogin

As always, the marketing spiel sounds good at first.
You can download the same day the DVD is released.
It will cost $20-$30. You can download it before it appears in rental shops.
Studios believe that we want to own our own copies of movies - Correct "The internet...is a viable method of distributing our content"; President of Universal Pictures - Correct

Why it will fail
"CinemaNow will only allow the movies to be played only on a single computer"
"Movielink will allow the movie to be copied onto a DVD, from which the movie can be downloaded to two other computers, but it cannot be played on a conventional DVD player.
Movies will also not play on handheld players.

So I can pay for the DVD, in much the same way as I would if buying it in a store, and can then only play it on my computer. Are they insane? The lifetime of a DVD is almost infinitely more than that of a computer. I would speculate that few of us still use a computer that we had in 2003 - am I right? Whereas I've got videos and DVDs pre-dating 2003 by many years and intend to keep them for many more years, that was the whole point of buying them in the first place. This has to be a classic case of not thinking something through and simply rushing to market to be seen as a "player". The hare has lost already and the tortoise will be triumphant.

It gets worse. The downloaded movies are [a] more expensive than if purchased in the store and [b] do not contain the bonus footage on the store DVDs. So where is the incentive for me to download a movie again? I've forgotten. Furthermore, where are the savings that a realised in online distribution (through not producing DVDs for a start) passed on to the consumer? How on earth did the price manage to increase?

I don't think this will fly, it will be interesting to see if I'm proved wrong.