Sony Pictures is in the process of digitizing its 500 most popular movies of all time in anticipation for making them available for sale electronically for download. The goal, it seems is for Sony to develop a program and back end similar to what Apple has done with iTunes but designed specifically for movies.
The timing couldn't be better -- with the next generation DVD technology still in flux -- Blu-Ray vs. HD-DVD, one things is consistent: They both use the same video format, it's just a matter what physical medium they will be provided for. In other words, the MPEG 4 based high definition technology is already set and Sony could be well placed to get users as they begin migrating from today's DVD technology (480p typically) to movies that can take advantage of high definition displays.