Why There's No iTunes For Movies
theodp writes "Slate's Farhad Manjoo would gladly pay a hefty monthly fee for immediate access to recent movies and TV shows — if someone would just take his money. In reality, he pays nothing because no company sells such a plan, and instead resorts to getting his programming from the friendly BitTorrent network.
iTunes for movies exists, and solves the problems you're pointing out. All you need do is make the data-rate of the movie lower than the average internet connection (not hard, movies typically are encoded at around 1.5Mb/s for SD), and stream it to them. They can start playing after a few minutes, while the movie is still busy streaming in the background.
The reason iTunes for Movies hasn't taken off is more to do with the lack of selection, and prices that are higher than plain o'l DVDs.