With ISPs imposing caps, and the inferior quality of the videos, why would they think customers would prefer downloads.
not to mention when you download movies off of say xbox live (or other services), they're more rental type issues where you only get the thing for 2 days.
for online to be successful, you need to permanently be able to purchase a flick. And people able to lends it to friends, and be able to sell it used.
Online downloads seem to be designed to prevent a secondary market, and that sharing of a movie between family/friends. I don't think the movie studios will shy away from that.
Not to mention with the caps again. And you could download them with a perm. licese. How much of a PITA is it when you're hard drive dies, and you've to redownload your collection.
I guess my ramblings really just mean I think online movies, seem to be geared to give the content holders more control, and the consumer less. Why would people be up for that. I could see the rental aspect (ala xbox live) might help, but for people wanting to build a permanent collection. meh.