Universal Studios' Movies Now Available on iCloud
Several readers have noticed that Universal Studios' movies are now available for re-download through Apple's iCloud service. In March we reported that both Fox and Universal were not yet participating in iCloud video streaming due to contractual obligations with HBO. HBO was reportedly working with both Fox and Universal to loosen these restrictions.
HBO agreed to loosen its arrangement with Warner Bros., which is working with iCloud, and also is in talks with Universal and Fox to do the same, the spokesman added.
When searching for movies in iTunes, Universal movies no longer contain a warning that the movies are not available through iCloud, while Fox's movies retain the warning:

Universal Studios (left) vs 20th Century Fox (right)
Another reader was able to confirm he was able to re-download
40 Year Old Virgin. Previous movie purchases from Universal should now be available for redownload in your previous purchased menu on iTunes.
Fox is also said to be in negotiations with expectations that their movies would also become available through iCloud in the near future.
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Top Rated Comments
You buy the movie, it gets downloaded to your device/machine.
If you later want to redownload it you can in iCloud (if available).
There is no "buying a movie in iCloud". There's "buying a movie" and it happens to be available later to redownload (or not).
arn
You can. go to itunes preferences and change it to 1080p and redownload.
I still can't believe the prices. I can get Bluray versions of several of these movies for $10 or less and I can rent them as part of Blockbuster or Netflix. Why are they so expensive? I have never bought or rented from iTunes store for that reason. Plus I am spoiled by the lossless audio on the Bluray movies.