Information Week has this article that kind of validates the instant gratification issue in on-line video:
The biggest hurdle for download services is the fact that current movie providers continue to provide a “vastly superior,” and often less expensive, product. “The industry needs to develop reasons and business models that increase overall consumer interest in Internet-delivered video, including allowing for easy transfer and better viewing on the large screen,” Wolf said.
Of course, when the technology improves and various different devices in your entertainment center is online and work seamlessly to provide a convenient, economical and superior movie viewing experience, consumers will get in.
My ideal scenario would be a media center that is in your living room hooked into your large TV, you take your remote and browse the online offering (pretty much like viewing on-demand content in Comcast), if it costs less than $4/movie and it is HD content, it is hard to resist. Also, main thing is same set of features as you get in a DVD, i.e: rewind, forward, subtitles, ability to watch it again(n days) etc. Special Features content… nah! I dont care much about those. Sorry, completely forgot…. movie should start in 30 seconds, that is key. I dont feel that I will plan ahead and download a movie that I would watch in the evening.