DVD Station

If we had to throw down, we'd bet that most people would prefer to get their digital downloads the old fashioned way (i.e. over the internet), but next month DVD Station is expanding their kiosk business so that people can download movies directly to several different personal media players, including the PlayStation Portable, next-generation Palms (we assume that this includes the LifeDrive), and a few video-capable iRiver players. Only "select stock" will be available for download, and they don't get any more specific about what movies will be available, what it might cost to download a title, or what DRM nastiness will be involved, but DVD Station says that they are on the cusp of closing deals with two major movie studios.
They've probably/hopefully got their business plan all worked out, but if they want to really impress us they'll put these things in airports, add support for more portable video players (and laptops), and charge something reasonable for the downloads.

[Via GigaOm]

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DVD Station planning movie download kiosks for the PSP and other handhelds