Digital remastering is a marketing buzzword for a transfer of video and/or audio from an analog source to a digital target using filters. The expression is likely to be used when a movie or recording was released before for home use in a crappy version and a new version tries to come closer to the original experience.

One reason to remaster is the availability of a better transfer technique as used before. Another is the appearance of a source that is closer to the master recording as the one used previously. (And where, one is tempted to ask, did they find that and why didn't they use it in the first place? Well, don't let me start ranting about DVD Special Editions (with lots of bonus material) of movies that I already own in not-so-special editions.)

Another reason is the use of digital filters to fix a deficiency of the original material, e.g. video or audio noise, by removing it (at least to a degree) or converting it into something less noticeable or annoying. In case of film, the differing frame rates of film (24 fps) and video (30/60 fps for NTSC, 25/50 fps for PAL) contribute, among other factors, to a change in color intensity, that has to be cunningly (color) corrected.

The result is a digital copy that is hopefully as good as the analog original, and won't degrade any further. It doesn't matter if the copy is then transferred to analog tape again, the result will still be called digitally remastered.