iTunes just released movie sales and rentals in the New Zealand Store.
Purchasing starts at NZ$9.99
Rentals Start at NZ$5.99

It’s a good idea but I don’t think I would pay full price for a download movie over a DVD because:
a) a DVD Is cheaper at the Warehouse than a download on iTunes
b) a DVD is higher quality
c) You don’t need to tally in the price for broadband usage. (My plan at the moment would be a $2 surcharge)