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Maximum PC Article from 2008
(media.tech.lgbt)
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They're probably referring to streaming. I don't know when this article came out, but considering they're talking about literally the first iPhone I guess we can assume it's 2007 or 2008, and Netflix started streaming back in 2007.
Apart from that, perhaps they're referring to when Amazon started offering movies to buy or rent online, but I don't know when they started doing that.
It's funny how piracy was a step forward compared to the industry. People around 2008 hyping downloading movies from the internet, when pirate sites have been doing that since early 2000s, of, perhaps, even earlier.