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Well, I think the biggest problem with that idea right now is still bandwidth issues. Even though a lot of people have broadband connections nowadays, it still takes a good while to download a full-length movie (of any decent quality). The provider would have to have a massive amount of servers and bandwidth in order to serve huge-filesize movies to thousands (or more) users at the same time for hours at a time, at broadband speeds.
I think it will happen in the future, but it will be a while away still. Bandwidth will improve though, and when it does, I'm sure some intuitive companies will take notice.
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Jordan M. Wigley
Aximsite.com
Email: jordan AT aximsite.com
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