Better late than never, I guess. The XBOX Live! Video Marketplace just opened up in Canada offering 30 some odd movies for Canadians to download onto their XBOX 360s. The selection is pretty solid as well with relatively recent movies such as Ocean’s 13, 300 and the new Teenage Mutant Ninja Turtles available. Microsoft will be expanding their library on a monthly basis.
Pricing is considerably cheaper than physical media: 300-440 MS points for standard definition and 440-580 MS points for high definition content. High definition content will most likely be capped at 720p though.
Unfortunately, I don’t see myself using this service any time soon. The primary factors being the 20 GB limit of my XBOX 360 and my adoration of physical media for “True HD” movies.