I personally have about 500 DVDs sitting in my office on the wall, and the only ones I or anyone else "re-watches" over and over again is animation films, such as Toy Story, Finding Nemo, etc, because kids will sit and watch cartoons over and over again and not get sick of them. I will be happy if all they do is allow rental downloads, then I will cancel my membership with Blockbuster and their $20 a month fee. Here is my "wish list" for Apple on this Movie Store.
1) Open a movie section on itunes with at least 2K movies in content, ready to download and rent for $2.99 - $4.99 (have a fixed price, but no more then $4.99) to be viewed for unlimited times in 1 week. Instead of waiting for it to download completely, have it stream to the TV (through mac mini or new video airport express) with a good enough buffer that doesn't interrupt the movie. While you are watching it or not, continue to download to the HD so you can transfer it to an iPod to watch later or take to a friends house, on a plane, in the car, etc.
2) Movies must be better quality then current TV Shows!
3) Release the Widescreen Video iPod with 60GB and 120GB and better battery life and screen.
4) Release a Mac Mini the have Tivo capability, frontrow "style" movie store that you can access and rent movies from across the room, and a huge HD between 250GB 500GB so you can import your current DVD collection. This would be my strategy if I was apple. And I know some people on here are screaming that they want to burn it to a disc, but simply ask yourself how many times have I watched the last movie I bought? Once! Maybe twice when you had to share your new found favorite movie with your friends or family. The movies you are going to want to buy, you will go to Wal-Mart and buy them for $15 each, then import them into the new mac mini!