I like the idea of movie downloads, but the way the studios have flubbed HD-DVD / Blu-Ray I won't be holding my breath for downloads. Just for the record, here's what's important to me:
1. Quality. Home Theater is here to stay and it's getting better all the time. I didn't invest thousands in A/V gear to watch blocky super-compressed movies. If download quality is not as good or better than disc-based movies then downloads don't offer enough to be worth my time.
2. Ability to archive movies. Before I'm willing to buy even one downloaded movie I need to be comfortable with the idea of buying many. I have hundreds of DVDs. If I'm to buy hundreds of downloads I want the ability to offload them from my PC to make room for newer movies and the ability to restore those archives and watch the movies again.
3. Ability to watch the movies on any device in my house, provided I have compatible hardware. If I have a DVD player for every TV in my house I can watch a DVD anywhere. Downloads should work the same way.
4. Reasonable price. That means less than I pay for DVDs. Forget everything about the convenience of downloads--I can order DVD movies online and they show up in my mailbox without tying up my network or making me responsible for ensuring the whole download completed successfully. Downloads aren't really more convenient, but they can save space, so if they offer the same quality and flexibility of disc-based media for a competitive (i.e., moderately cheaper) price I may be interested.
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On top of all of these items, it really needs to become practical to use a PC as a home entertainment hub. Higher-end A/V equipment delivers very clean audio & video, while PCs are notoriously noisy. I want the same high-end A/V experience with the flexibility a PC offers before a computer will become my main choice for home entertainment (but I do hope this happens!).
Cheers!
Speleo.