I'm not fussed about whether it's free or not, it's convenience that matters.
When my girlfriend and I would like to watch a movie that's no longer in cinemas, I don't care if it'll cost me a couple of euros if it only takes a few clicks to start the download, and the connection is good enough that we can watch it a few hours later. Just the fact that I don't have to look at porn ads on some torrent site ghetto would be worth money to me.
Right now, it depends on what country I happen to be in whether I can download a movie from, say, iTunes, at all. (I can't at home, certainly) But wait, I don't even want to "buy" a movie off iTunes, as that would force me to watch it within 24 hours. If I wanted to have my life scheduled by the entertainment industry, I'd watch TV.
We're finally at a point where I can buy non-DRM music if I jump through a few hoops and lie about where I live. Except of course it's easier and inexplicably costs almost the same amount of money to just order the CD from amazon. Okay, it takes 2 days to arrive, but music usually isn't as spur-of-the-moment as "let's watch a movie!" Plus, I get a nice booklet (if the artist cares enough to persuade the label to spend a few cents on presentation) and I don't have to worry about backups once the CD has fulfilled its original purpose of facilitating a rip to FLAC and moves into the CD rack, rarely to be touched again.
I don't see how they wouldn't make a killing if they sold downloadable, DRM-free movies for about €3-4, albums for, say, €4, and TV series episodes for 50 cents to 1 euro. Sure, it would destroy the industry of shops that sell DVDs, but amazon and play.com are doing that already.