Well, I’ve now got three decent options for video on demand:  Hulu, iTunes movie rentals, and the Netflix/Roku set-top box (which just arrived a few days ago).  

Hulu is free, ad-supported, with mostly TV content.  Netflix’s “watch instantly” has old-run DVD content (movies and TV shows) with no ads, free for existing subscribers.  And iTunes has newer movies and content for a pay-per-view (err, “rental”) model.

I think we now officially have a competitive market for on-demand TV and movie content.