TiVo is starting a trial run of a new service that allows customers to download videos via the internet onto their TiVo boxes.

TiVo partnerned with the independent Film Channel (IFC) to offer TiVo customers downloads of new shows via the Internet.
More details in this AP story. (Thanks Larry R.).

While this is definitely a move in the right direction, it is not clear yet how customers will have to pay for this. What TiVo has going for them, is that they are already in the living room. Movie on Demand internet download sites are already available, but customers need to first get the movie on their PC and then somehow get them over to the big TV in the living room.
Netflix is also supposed to start testing their Internet Movie Download service. Netflix does not have a box in the living room yet, so it will be harder for them to gain customers.
Engadget has leaked screen-shots from the TiVo internet video download service.