Another reason why HD VOD is not quite there yet...

[D.R. Payne]

"The Netflix web site is temporarily unavailable.
Our site is temporarily down, but not to worry, our distribution centers are still sending and receiving DVDs. We're also working hard to get the site up as soon as possible. Sorry for any inconvenience and thank you for your patience. You can contact Netflix Customer Service at 1-888-638-3549.
-- Your friends at Netflix "

I just went to reshuffle my queue I love Netflix, but this is another reason why having a disk is nice.

[GlocksRock]

see my thread in the general area for even more reasons.

[stratman]

Nothing like physical media, to do with as you please.

[D.R. Payne]

(Stolen from http://www.hollywoodinhidef.com/blog_detail.php?id=164)
When it does finish downloading, it is compressed and not in full 1080p and does not have uncompressed audio.
It takes up a ton of storage space.
It doesn't have the packaging -- at least not that I can touch and feel without making a printout.
It doesn't have chapter stops.
It doesn't have audio commentaries, making-of documentaries, bloopers, deleted scenes, trailers, etc.
It doesn't have interactivities.
It doesn't allow me to lend it to a friend or play it on more than a finite number of players.

[jcPanny]

There is a reason why Apple has sold billions of compressed audio files through iTunes, the average consumer doesn't care about the difference between MP3, AAC, and lossless audio.

I suspect that Apple TV and/or netfix will bring HD video (in some form) to the masses and BluRay will remain a niche market. The convience factor is huge. You see posts on the forum like "My BluRay player wont play Live Free, Die Hard", etc. BluRay will need a fully implemented, non-changing standard and players in the $1-200 price range before is can reach critical mass.

[allargon]

I'm not so sure on this one.

Cable VOD looks a little better than upconverted DVD. It is actually MORE convenient than Apple TV, since you don't have to buy a $300 box to play $5 movies. Netflix is slow, and B&M stores require you to leave your house. I think Apple might acquire a small portion of the rental market but won't overtake Blockbuster, Netflix or even multichannel PPV. They might eclipse the Xbox/PS3 services, but I doubt it.