In another step towards legitimacy, Warner Bros announced that it will sell movies and television shows through BitTorrent in the US. (The service already launched in Europe in March).

No mention of what format is being used, but the article mentions "new digital rights management (DRM) software from BitTorrent" which was a major element in the deal. (BitTorrent is strictly a transmission technology).

This follows up on an announcement by seven studios last month who plan on selling movies MovieLink and CinemaNow.  Warner Bros.' movies will also be released along with the DVD, but sounds like costs will be more inline with the DVD instead of in the 20-30$ range.  Unfortunately, you still can't burn to physical media.

I would still prefer to see a service where you could pay that $20 or $30 for the right to watch theater-release movies in the comfort of your own home, but obviously there are some complicated politics and economics involved there.  Still, this sounds like a step in the right direction. At least Hollywood is acknowledging what its customers want and are trying to deliver.