Starz originally began offering movie downloads via RealOne over a year ago. I briefly gave the service a try, but was dissapointed with an unpredictable selection of mostly older films. If the new service offers current, mainstream content, both the pricing and timing could be right to make some waves.
NY Times says: As a subscription service, Vongo will allow users to download as many movies as they want for $9.95 a month. They will be able to choose from an ever-changing roster of about 800 movies, including about 300 films in rotation on the Starz cable channel (mainly movies released in theaters one to three years earlier) and 500 older titles.