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Netflix’ titles will be in an older static non-HD technology, where on line downloads can adapt more easily.
iTunes will have 2 competitive advantages. These are at both ends of the movie demand curve. First, when a movie first comes out, everyone with an AppleTV can download it the very first day. No running down to Blockbuster and having all copies checked out already or waiting for Netflix to get around to sending you a copy weeks later once the new release demand for that particular title has died down.
Second, online distribution is also ideally suited to fulfill the long tail of demand for low-volume niche movies in many genres...
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