Again we're going to see Blu Ray being adopted because people get it without really knowing it. I'm talking about PlayStation 3. It might be expensive right now but so was PlayStation 2 back in 2001. Now it is the best selling home console of all time and many, many people are using it as a DVD player because it's convenient to have one box under your TV rather than two.
Here in the UK, we've had a service which is similar to video on demand for a very long time. It's called Sky Box Office. Previously you had to order movies by phone, but when Sky Digital came along in the late 1990s it became possible to order movies with your remote control. Yes, it isn't true video on demand but it is very similar. In itself, it is popular but compared to DVD it hasn't made a dent.
There is one very, very good reason for this. People like having physical products. If a digitally distributed movie is going to cost the same (or more!) as buying it on real media then it is going to fail miserably.
What Apple does with movies is really not going to matter. The Apple TV device is a failure because it is one box which people aren't interested in. If it had a built in DVD player or built in Blu Ray drive then it would become a much more interesting prospect, but when I've got to turn off my digital TV box and turn on this other box, swap over the remotes and then get used to a new interface, I can't be bothered. At £199 it can go to hell too.
I believe true VOD will become much more attractive when I don't have to do anything extra or buy anything extra to watch it on my TV. Virgin Media's service is really good because it's there on the digital TV box, but until Sky gets something out there and until there is a free service offering it via DVB-T boxes then it isn't going to make a difference here in the UK.
Sky's only box with internet capability is Sky HD, so when that becomes more widely adopted I think we'll see more services on there. BUT, distribution of HD programming via internet is going to rely entirely on the internet connection people have at home.
Timing is everything and I think that Blu Ray has enough of a window to actually get huge adoption. I see Blu Ray player and disc prices dropping much more quickly than connections capable of distributing similar quality movies becoming widespread.
No matter what though, Apple's influence in this area is going to be absolutely tiny, if any.