From my experience, the Digital Copy is something that can be copied down to your PC for viewing. It just copies down the movie and not all of the menu and bonus features. Then from there, you can watch it on your PC or even convert it to watch on your PSP, or Xbox, or MP3 player, or a variety of systems and formats. So, basically, the digital copy just brings it down to your PC so you can watch it on there. I have the Dark Knight, Wanted, and Hitman all on Digital Copy on my laptop so I can watch them anytime on the road without having to bring the DVD along.