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Vetteman94 said:
This looks cool and works pretty well. But I personally like to own movies so I'll stick to hard media. But I can definitely see this being an advantage to some people. Although my connection speed is 20MB, and it never drops below 15MB, so I wonder how well it will work with the 512KB and 1MB connections as being the norm in the US. I know they say it will scale it back but that comes at a cost, whether that is buffering time or image quality.

The quality degrades dynamically.  It is actually quite impressive that they are doing this in real time.  To me at least.