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Tesltra's BigPond Movies offers all new releases and is set to have a library of more than 2000 titles in the coming months available for Samsung TVs, Blu-ray players and home theatre systems.
The movie on demand service allows users to rent films, play, pause and fast-forward just like a regular DVD.
The price of the movie rentals start at $3.99, while new releases will set film buffs back $5.99. HD version of movies are also available.
BigPond's service will be available on all ISP's, but is unmetered for Telstra customers, it has also been confirmed.
The existing BigPond TV service on Samsung already provides seven streamed channels including news, sports and music videos, and are free to view for the bulk of users.
Telstra also revealed today it will launch a new AFL Game Analyser service later this year.
"With automatic rental periods and the ability to browse through a variety of titles ranging from the latest TV shows to Hollywood classics, BigPond Movies really is bringing the DVD store to living rooms across the country," Telstra's Director of IPTV, Pay TV and T-Box, Ben Kinealy said.
This announcement comes as the Korean company launched its new line of SMART TVs, which it unveiling today in Sydney.
Samsung users have already been receiving BigPond TV on certain models since last September so the movies is the latest addition.