HecubusPro said:$14.99 for new movies, but $9.99 for older films supposedly.
Some movies aren't much longer than hour long TV shows, and people have been downloading those regularly from iTunes. And like I said, there are a lot of people out there already downloading movies from the internet. My guess is there are also a lot of people who would love to have an easy option to get their movies online, but aren't tech savvy enough to know what bit-torrent is, or where to find illegal torrent sites, etc. Those types of people would probably jump all over an easy to access and use movie downlaod site. iTunes already has a great reputation, so consumer comfort is high with Apple in that regard.
I've said it before and I'll say it again... it's really easy to hook an iPod up to a TV to play videos. Just one cable. You're not limited to the iPod screen or your computer screen. Download movie>copy to iPod>plug into any TV with composite video and audio jacks (yellow, red, white). It's not DVD quality, but it's pretty good. Apple could certainly make it better while still keeping download times reasonable. I downloaded the second season of Lost - all 24 episodes - from the iTMS in less than 4 hours (I'm not sure how much less because I went out while they were downloading). Anyway, that's around 1,032 minutes of video. I'm guessing Apple could raise the video quality and still keep the d/l time of a 120 minute movie to under an hour, which would be reasonable, IMO.
$10 - $15 movie downloads won't replace Netflix for me, but buying DVDs is now a thing of the past. In fact, I'm in the process of selling my prized DVD collection. I look forward to downloadable "rentals."