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I really don't see this happening, to download a high-def movie with all the extra blu-ray style features takes up countless gigs. It's not like little 5mb songs on itunes, and even with itunes cds still have a formidable business. We'll need terabyte harddrives and faster internet connections before we all buy movies on line and watch them like that. The idea is cool, but even itunes movie business I doubt is that robust just yet. People still even like to rent videos., and movies are a little more expensive then cds, they like something like that in their collection they also like to let friends borrow it, you can't do that with a download. Plus whats up with pricing for on-demand? It's a digital copy of the movie and the on-demand rentals still only let you keep them for 24 hours. It's just as expensive, it's a shorter time frame to keep and I can't switch a download from one tv to another.
I think the next generation of gaming consoles might push donwloads further, but can the internet even handle that level of traffic?