[eric2006]

Originally Posted by karavite

Any way, I can see the technology working, but what about price? 99 cents is fine for a song, but if apple charges 5, 10 or more for a movie, it just isn't worth it. Do you think they would ever offer a subscription model like Netflix? That's what would get me on board (and I have been using Netflix for many years).

It's actually not much for a movie, but people are comfortable paying more for a DVD because they can use it. With a digital movie, they can play it on their iPod, or computer, or, after much setup, perhaps on their TV. An iTV device would effectively replace a DVD, because it's faster than going out and buying a DVD, it's cheaper, it works on every video player in the house - not just the TV, and is about the same quality.
Another thing is that you're buying the movie, not renting it, so it seems expensive compared to a rental (though I'm not sure if we really want some hellish DRM scheme to make movies rentable..)