Walmart has announced a partnership with Vudu. You can take your DVDs and Blu-ray movie discs to Walmart, and pay $2 to have them "converted" and stored in the cloud. If you want an HD (Blu-ray) version, you pay $5. Walmart does not actually read your discs; instead, they verify that you actually have a physical copy, then just enable that movie for your account from a previously stored digital master. Walmart also apparently stamps your physical disk with some mark so that you can just give it to a friend who takes it in a week later. The Walmart/Vudu site has remarkably little information; you have to create a Vudu account to figure out how it works and what the restrictions are.
Of course, if you want to stream your HD movies from the cloud, you better have good broadband at your house.