Follow up:
Don't get me wrong, I think that HDDL has a huge potential in the rental market to replace Netflix/BB Online. Netflix has already started to embrace this with unlimited streaming downloads, but it can truly be taken to full integration...
Imagine being able to set up a queue on your TV for movies you want to see. You pick your resolution of choice (480i, 480p, 720p, 1080i, or 1080p) and then you add movies. You pay more for more bandwidth (1080p) but the service is a flat fee, rent what you want scenario. No STREAMING! The players download in the background when you sleep. Instead of getting them in the mail, they just appear inside the box and you play them when you want to - for as long as you want! The big caveat is the standard Netflix/BB one - only 2 movies or 3 are available to you at any one time.
You can watch a 'rental' as many times as you want, for as long as you want, but when you want something new, you must 'return' the movie. Just one click, and it's returned. Then the new movie becomes available within 24 hours. The big perk is that the movie you want is ALWAYS available to you within that 24 hours. The other perk is that certain titles - like new releases, could actually download far ahead of the actual release. Give a person 100GB and they could store 5+ movies on their system, but only have access to two or three at any time. So, the rest sit there in the 'queue' for later viewing.
It all ties in with music and advertising and can work phenomenally if implemented correctly.
But, the $3.99 for limited viewing over a short time period? That's just insane. I own about 25 Blu-ray movies and I paid $15 or less for each one of them. They are mine - I can watch them as many (or as few) times as I want. With a 3 year old in the house, Ratatouille has been through its paces at least a dozen times already.
This technology could, eventually replace optical media - but it will require (REQUIRE!) a service that stores your order history and protects you against data loss. A fried hard drive = buy a new hard drive, then reload your collection. It requires networkability, and TVs with built in decoding for video streams via wi-fi. It requires portability... somehow.
It definitely is a cool concept, and I LIKE AppleTV. I've used it, and I could definitely see using it as a media server if the damn thing could see my DVD collection that's stored on my networked hard drives (it can't). But, I could use my PS3 just as easily... or an X-Box 360. In fact... I'm not sure why I would spend the money on an AppleTV when I do already have a PS3 that will likely be able to do most of it's functionality, play my Blu-ray movies, and games as well.
We'll get there guys, but not today... and I sure as heck wish this site would embrace HD optical discs instead of continuing to pretend they are SACD or DVD-A. It's video guys, and my smallest TV is 32" - not exactly an MP3 loving pocket display. HD is the buzzword.