No way.
I won't pay to rent something that I also have to pay to download (bandwidth fees). Even further, I will not pay to rent or buy something that is provided at such a low resolution. And, I definitely will not watch something like that on a 2-inch screen (and I will not suffer through watching video at that low resolution blown-up with an Apple TV to my television or on my computer screen).
I'll gladly pay to get actual DVD quality movies and even tolerate the bandwidth use / fees. But, there is a catch, it must be at least half the price of the comparable DVD at the local store. If I have to lose some of my bandwidth allowance or pay fees for overages, then I am definitely not paying anywhere near store price.
After-all, I can go to the store, and buy DVD's at full quality for regular price (or a nice discount at many stores) and not have to burn them to disk myself, copy them to a given device, or any other messing around. And, I don't have to use up my download allowance or pay extra fees. I get full quality, great T.V. resolution, and no hassle.
Now, if someone just really didn't want to leave the house, there's always Netflix that will rent them to you (many, many per month) at a flat fee and deliver them to your door. That's even cheaper. You can rent a lot of movies per month that way and it's cheaper than paying for just small number of rentals.
And, again, with Netflix, I get higher quality, larger screen, no hassles, no download fees, and I don't have to leave home.