I started playing around on the internet about 14 years ago on my 14.4 modem and it is remarkable on how much it has evolved since then ...
About 10 years ago there was a debate as to whether MP3s were going to be the next mass market format or if SACD/DVD-A were going to dominate, and the basic arguments that are used against Digital Downloaded movies today were used against MP3 back then. What people never seem to take into consideration in these types of discussions is how much bandwith at a price level can increase in 36 months, and how one break-out product can really change the face of a competition. An example of a break-out product was the iPod because before it was released many/most people would burn their MP3 files to a CD to play in their old players, and the release (and popularity) of the iPod meant that people so no value in burning CDs anymore.
Right now people are downloading a lot of movies and there are even people who are downloading 4GB/8GB 720p/1080p HD movies. These people have accepted the limitations of the internet at the moment and are (completely) willing to queue up a download to store on their massive hard-drives until they have a reason to watch it; many of these people own a XBox 360, PS3 or Home Theater PC extender to watch these movies without worrying about burning discs. All that is missing (at the moment) is a mass market product that can change the thinking of the majority of users and Digital Downloads could explode.
