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in 3/4 years people will have the bandwidth for a decent HD movie, but most people simply don't have the storage or the broadband for true HD.

An ok HD movie encoded with 264 is around 10 gig, and that's without any extras.

Thats more than most peoples bandwidth caps for the month and about 1/20th of thier entire HD space.

People want disks, people want to own movies. Yes rentals have thier place but people will always want to own, and downloads only last as long as the system does.