iTunes Movie Rental
There are now lots of online services that are attempting to replace the video store. The services are reportedly plagued by problems in quality, high bandwidth requirements and a lack of the special features now found on most DVDs. To me the biggest drawbacks are in convenience - long form feature films call for a living room and a big screen - locking the content to a certain computer is a recipe for obscurity.
Apple now has AppleTV (take2) which aims to allow users to download directly from the living room with a remote. The downloads are progressive which should help with quality and cut down on any latency issues. The film can be taken along and viewed on an iPod or iPhone.
These all seem like steps in the right direction in terms of convenience. The problem is in the DRM. The user has 30 days to start the film, but once started, only 24 hours to finish watching. After this time, the film is locked. This is applying a 90s mentality to a 00s service. Netflix has pioneered a new way of renting films in which you retain (say) 3 films for as long as you want. When you want a new film, you have to send one of the old ones back.
It seems to me that this would be the best way to rent movies online. It would enable users to set their own viewing habits. The beauty of the Fairplay model of DRM for iTunes music purchases was that it provided enough freedom that most users did not even know the system was locked. Movie rentals should be the same.