The blog that was sued over disclosing leaked information about the Mac Mini before its launch, ThinkSecret, reports that Apple CEO Steve Jobs will announce the availability of movie rentals on iTunes at next month’s Apple Worldwide Developers Conference.
Rental instead of purchase is the key issue here. The use of Digital Rights Management to limit how long a video file can be watched after payment is already facing lots of criticism but is also seen as an almost inevitable concession to the big movie studios. I’m curious whether higher priced download-to-own options will also be available.
ThinkSecret reports that the announcement will cover deals with Walt Disney, Universal Studios, Paramount Pictures, and Warner Bros. Warner Brothers already offers limited downloads for rental and purchase through a company called Guba, in a partnership we covered here last month. Warner, Twentieth Century Fox and Paramount also have deals for P2P rental distribution with Wurld Media. Several other services offer download to own movies from major studios as well, including CinemaNow and MovieLink.
If this ThinkSecret information is true it indicates to me that these studios are willing to try out a variety of distribution methods with smaller vendors but want to play it safe with the hugely popular iTunes. Episodes of TV shows through iTunes are becoming more common, usually with DRM as well. Movie rental is obviously a model that most consumers are comfortable with, but it will be interesting to see whether downloading media files to our computers that are only usable for a short period of time makes sense to people. On some level it could be a test for the palatability of the Software as a Service model in the consumer space. If mass audiences are willing to pay for a movie download that will only be viewable for a short time then perhaps we can be expected to pay a subscription for ongoing access to software we no longer own.
I really enjoy Movielink’s movie rental service - they let you use WMP _OR_ Realplayer (hey, options are options). They have a great variety of movies, get lots of movies in all the time (and loads of them are mainstream download-it-instead-of-going-to-Blockbuster movies, although they have some obscure stuff also). Considering I don’t use iTunes now for anything really (other than the random LOST episode purchase), I doubt I’ll be switching. Plus Movielink has all sorts of deals (99cent movie of the day, deals for military members, deals for college students, etc). Yup, I know where I’ll be staying. http://www.movielink.com folks.
What does time-based (or limited viewing) movie downloads have to do with SaaS? Movies are generally “consumed” once (or a few times over its lifetime) vs. software, which is used, well, a lot more times.
Terence, I may be barking up the wrong tree here, but I think that there are some similarities on another level. Are consumers willing to pay for access on their computers to something they don’t own? After years of software-in-a-box I think there is a question here, and I think movie rental downloads are related in an interesting way.
Oh yeah - Movielink also has movie PURCHASES. There’s also another service, which I believe was called CinemaNow or something. Back when these services first came out, and the last time I checked, I wasn’t too thrilled with CinemaNow’s offering, so I haven’t kept up with them.
“On some level it could be a test for the palatability of the Software as a Service model in the consumer space.”
Since the two services I mentioned for a while have been out for a while, I don’t think there is a need for a “test” anymore. The online-movie-rental model works. iTunes, if they do this, will simply be opening it to a wider audience…
“Terence, I may be barking up the wrong tree here, but I think that there are some similarities on another level. Are consumers willing to pay for access on their computers to something they don’t own? After years of software-in-a-box I think there is a question here, and I think movie rental downloads are related in an interesting way.”
I think you may be barking up the wrong tree. That is, if what you are trying to compare is iTunes charging you $2.99 for a 24 rental period for a movie versus Microsoft charging you $150 for a copy of Windows as a service… I don’t know if Terence expressed it correctly, but his intent is correct, I think. Why would you relate a single-night’s movie viewing to a company maintaining a service-provider’s hold on your *operating system* (or word processor, or whatever).
“Several other services offer download to own movies from major studios as well, including CinemaNow and MovieLink.”
Hmm, I guess this edit is OK because it clarifies the fact that iTunes would be the new kid on the block, not an innovator (unless they create a stunning new model). BUT, while you’re editing (since more people will read the main post than all of these comments), you may want to clarify that CinemaNow and Movielink offer download to own AND download to rent services. If nothing else, it will let people who haven’t heard of them go give dowload/renting (rentloading?) a try instead of waiting around for iTunes.
-other
FYI, CinemaNow appears to have seriously ramped up their offering in terms of new releases/mainstream movies/quantity. I can’t comment on their service/quality/software though as I haven’t tried it recently.
Movielink is great though, especially their customer service (ALWAYS helpful, via their webchat). And speeds? Well, let’s say that it’s amazing. Insane amazing. Assume you have a good connection, you will have your film *FAST*.
I’ve commented a lot on this…
“The blog that was sued over disclosing leaked information about the Mac Mini before its launch, ThinkSecret, reports…”
This very same blog has got countless things wrong in the past…
Sorry, but movies and software are apples and oranges.
A movie rental is one night’s entertainment. Software is something that, generally speaking, is used for daily productivity. (The one exception to this is PC games, which like movies are essentially entertainment). Willingness to rent the former doesn’t translate into a willingness to give up control of the latter. (Although reading some EULA’s, we’re doing that anyway…)
In this case I don’t think we know enough to determine if the service is viable. File quality, pricing, exact DRM terms. The biggest question in my mind: Can it offer superior pricing, convenience, and catalog size to Netflix?
I guess we’ll have to wait a couple of weeks to find out - but somehow I doubt it.
Marshall, the similarites in a movie DVD and software in a box are their respective packaging (CD/DVD in a box) and that they are “soft contentware”.
IMHO, it ends there. Purchasing SaaS adds a dimension to software that downloading movies does not, mainly data and software portability.
At end of the day, how one “consumes” is a bigger determinant of how one “buys” XYZ than a “I used to own soft contentware in a box” and now “will I buy it in a non-box form” mentality. Examples: If I was a busy traveler and wanted to watch movies, iPod video loaded with iTunes downloaded movies would be great for me. But if I was a stay at home mom, Netflix, Walmart and Blockbuster is the better way to go.
My 2 pesos.
I really love the idea but considering the movies will likely be $4, I’ll take my chances with RedBox (select cities only) that offers $1/day rentals.
http://redbox.com
This is perfectly fine with me. With a few exceptions (Princess Bride, Garden State, LOTR), I don’t buy movies. Movies are not music. But I use Netflix all the time. Unfortunately, Netflix suffers from scratched DVDs and the two - four day downtime between movies. I’d much rather pick the movie and watch it ten minutes later. Part of the problem is the classic issue where Netflix makes you pick out movies ahead of time, thus skewing selections towards high-brow movies, but when the movies arrive, you realize that you really just wanted to be entertained with a comedy or action movie, so the DVDs sit around because you feel weird sending the movie back unwatched.
If Apple can manage to price the rental downloads at a level where they can compete with Netflix and offer the same kind of selection, I’ll switch over, definitely. But if they stupidly think that I’ll pay the same amount for a downloaded rental as I do for a movie rented from the local grocery store, they’ve got another thing coming.
Unless the downloads are *at least* DVD quality *AND* include the ability to output AC3 to a digital audio connection (for decoding of DTS or 5.1 audio), I won’t bother. If all I get is 320×240 stereo, I’m not so impatient that I can’t queue stuff up at NetFlix and wait a day or two for better audio and video quality.
These self-destructing movie files will never work because people like the flexibility of renting and watching it 2 weeks later if things come up in their lives, or to move the device to their iPod then to their laptop then to their friends’ media center to finally watch it, and these formats won’t accept that.
I think the truley successful model will be subscription based with access tiers. 1 tier will be access to up to 5 movies a month for $15, tier 2 will be access up to 25 movies a month for $25 (I think a 25 movie per month access cap is required to combat piracy). The files will have to be unlimited device transportable, and never self-destruct.
And of course the catalogue must be totally inclusive with all movie studios on board.
at least that’s my future view of telecom and entertainment convergence. http://www.telecommer.com
“Sorry, but movies and software are apples and oranges.”
And so are movies and music. Most movies are watched once so renting makes much more sense than owning.
I would actually prefer to pay as I go rather than subscription. Who wants another $15/month subscription?
I agree that the length of rental and number of plays will be key but I don’t think it needs to be much more than 1-2 plays over 2-7 days. That’s where MovieLink really suffers. You only get 24 hours to watch the movie.
It would seem that CinemaNow and MovieLink have already broken all the ground here. The biggest issue is that they are Windows-only which I actually think makes a big difference even despite Mac’s supposedly low market share.
I just got my 2000t and all of my songs are skipping in iTunes, and I cant figure out why. If someone could help me out and tell me how to fix this I would really appreciate it because its driving me crazy. Thanks for the replys.
San Diego Tennis League http://www.northcountytennis.com