Will iTunes do for online movies what it did for online music? Does Apple’s entry into this space represent a ‘tipping point’ for the entire segment, or is such an outcome even relevant to Apple? In other words, is this simply the next step in Apple’s larger strategy to establish a presence in living room?
Chances are even a $9.99US movie would have it’s quality downgraded significantly. Most music on iTunes is currently at a very low bitrate, so it would not be a surprise. I think it would have to be straight DVD quality before this ever catches on.