Dave

Why should anyone buy discs anymore for +$30 each when I can rent 8 HD DVD's/Blue Ray discs from Netflix a month for $10. It seems to me that the industry is looking in the wrong place for the effects on the formats. I own both the PS3 and Xbox 360 HD DVD player and have watched probably 12 movies in the last month on both systems combined with no disc purchases at all. For me to have purchased that content would have cost over $400 vs. the $10 I spent. Pretty stupid to buy IMHO.

The downloadable HD content is not a substitute for the HD DVD drive for one simple reason:
HD downloadable movies $4
Netflix HD movies $10/month for 8+ At almost $3 savings per movie watched, it will take less than a year to fully pay off that investment, not to mention any residual value on Ebay.

The HD content will be nice for getting $1 TV show episode if my HD DVR fails to record something or I just miss a good show.