I'm kind of questioning a service for downloading videos at this time. Now, I don't know how well Microsoft's current renting thing is for movies on Xbox Live. However, if movies take up a lot of space, I'm not really sure if my internet can handle it. The good internet at my parents house is well... good... but I can't imagine using it as a complete movie experience and it'd be better than hopping in the car and just going down the street to a brick and motor outlet. Hell, I think I'd laugh at the thought of even trying the same thing on the internet service at my apartment, which has crummy DSL (but good enough for games, so I can't complain as much as I should).
I'm not saying that it wont happen (that'd be stupid to say that), but I don't see the great advantage of it until you can either download it VERY fast, within 30 minutes to an hour (30 minutes would be roughly the time it would take to go to the actual store) and never have it stop to download if you're streaming. Now if you're not renting but actually downloading for keeps, download speed might not matter as much, but it'd still tie up the internet for quite a while based on indications of downloading on my parent's computer and their connection.
Still, the format war here is between HD-DVD and Blu-Ray and I'm not really sure how Blu-Ray would lose the war if it beats out HD-DVD.
