OMG Where did you get that clip.
Anyway, somebody is going to come up with some way to break any copy protection system. But I still think this is a very good move for the movie companies.
Before you'll have 10 people buy/rent the DVD and 5 illegally download it on-line. Now you'll have 15 people buy/rent the download/DVD and 7 illegally download it on-line.
But I still don't think it would work for an iPOD but it's working with TV, so what do I know. I would rather have it go directly to my TV.
Breaking Apple's DRM isn't worth the trouble. It isn't even that difficult, but legal use is sufficient and convenient enough for most people.
Studios stand to make more money off this deal than just selling rental rights to companies like Blockbuster and NetFlix. If the cost is low enough, it could be very profitable.