The article talks about music, but is applicable to movie downloads. It also raises doubts about cell phones as entertainment devices:
Reasons cited for not purchasing a music playing phone included worries about battery life and concerns about losing the handset, and potentially their music collection.
The fact that phones tend to be frequently replaced also meant people had a low emotional attachment to them.
Speaking of downloads, the new issue of Videography magazine is available here (warning: massive .pdf)
ALSO RELATED: Newsweek surveys the broadband effect on media mergers.