As I've tried to educate my readers last year with my blog "Why HD movie downloads are a big lie", these so-called HD movies [from on-demand download services] use very low bit-rates compared to even standard definition DVDs let alone something like HD DVD or Blu-ray. Raw uncompressed 1080p video at 60 frames per second is about 3000 mbps so even HD DVD's 28 mbps needs to be compressed about 107 to 1 with the H.264 or VC-1 codec. By all reasonable standards this needs to be the minimum bit-rate for acceptable loss in quality on 1080p video.
Standard definition 480i DVD movies are typically 5 to 8 mbps (megabits per second) MPEG-2 whereas these so-called HD wannabes weigh in at a pathetic 1.5 to 4 mbps of 720p H.264. Apple's new HD service is capable of 4 mbps which simply isn't enough to be considered HD. XBOX360 downloads are 6.8 mbps 720p VC-1 so they're semi-decent borderline HD. Marketing will push the nicer sounding "720p" aspect of the video but they don't tell you it's way too compressed to offer good video fidelity. Blu-ray has a maximum bit-rate of 40 mbps while HD DVD offers a maximum of 28 mbps. Over the air broadcasts can be up to 19.38 mbps.