They are scared to death but the movie industry is trying to make digital on-line distribution of movies work. Disney, who has been a real on-line pioneer in the last year, announced they will make movies available on Movie Link at the same time as DVD sales. Usually movies do not come out on Movie Link, if at all, until well after the DVD is available. Of course there is plenty of DRM attached to these movies. They can be put into up to three digital devices including laptops and handheld devices. Movies cannot be burned onto a DVD. It's not perfect but at least it's a step in the right direction.
Film Industry Tiptoes Into The Digital Water