I just got an email from VUDU saying that they can convert your physical disks to digital media available for streaming. Here's how it works.
You'll have to create a VUDU and UltraViolet account.
Search for the movies that you already own and add it to your list.
Print the list and head to Walmart to turn in your discs.
From the description, it sounds like they keep your disc, but from the hands-on it appears they just stamp the disc so that no one else will trade it in. If anyone tries this out, let me know what you think. I'm willing to do this for a small fee ($2.00 to direct conversion and $5.00 to upgrade from SD to HD).
Sources
VUDU: Disc to Digital
Hands-on
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