Netflix is rental, so you stream the videos in question. There's some caching involved, but after a period your rental is over, so there's no need to store anything.
UltraViolet is more for purchasing. You should be able to re-download the digital versions of your purchased movie any time you want. It's basically like storing your movies online, in the cloud, and so you don't have to worry about backups and stuff (although you can probably have local versions of all the files, for offline access).
That's the general idea anyway, what it will be like in practice, nobody knows.
UltraViolet is more for purchasing. You should be able to re-download the digital versions of your purchased movie any time you want. It's basically like storing your movies online, in the cloud, and so you don't have to worry about backups and stuff (although you can probably have local versions of all the files, for offline access).
That's the general idea anyway, what it will be like in practice, nobody knows.
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