Richard, for what it's worth...
I don't watch films on my computer but I do download from time to time. I have a pinnacle showcenter thing which reads movies off my pc and plays them on my big screen home cinema
Some are good quality, others not so - crap ones I watch on rented DVD later.
As for going to the cinema - no thank you - I can't stand the sweet wrappers, people standing up to go to the loo or get another hot dog, people who laugh at the wrong time cos they don't like the movie or comment on the movie as it goes along, uncomfortable seats, etc...
So I definitely prefer watching them in the comfort of my own home either on DVD or downloaded if the quality is good enough.