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@dbot
Dish already allows storage of downloaded he movies to USB attached drives, so they seem to be moving in in the direction of greater media flexibility.
The music and movie industry would love to force everyone to buy content on optical drives, but as transfer bandwidth and storage capacities rise, consumers and distribution vendors (such as dish) will push harder and harder for greater content playback flexibility. Case in point: iPod and iTunes.
Movie studios fought tooth and nail to stop the advent of vidio recorders, but the market shoved them into a corner.

The older models of content distribution keep evolving. The challenge for the content producers is to adapt to consumer demand.