digital music/video

03/23/2006, 11:20am, EST

Thursday, March 23rd

Universal Pictures takes on iTunes U.K.

Universal Pictures has launched a service in the U.K. to sell digital downloads of full-length movies with a DVD copy to complement the download, plunging the studio into competition with Apple's iTunes Music Store. iTunes as yet offers only one full-length film that Disney and Apple silently added in January of 2006, and which industry watchers suspect may be Apple's way of testing the waters before delving into widespread full-length film downloads. Starting April 10th, users of Universal Pictures' new service will be able to download two digital copies of selected movies, with one for a computer and one for a portable device, and will receive a DVD in the mail, according to a report from Reuters. The service operates on a download-to-own basis, and utilizes Microsoft's digital rights management technology to prevent consumers from duplicating the movies and distributing them. "It gives instant access, it gives portability and it gives much greater flexibility for the consumer to consume his product any way they want," Universal Pictures U.K. Chairman Eddie Cunningham said.

Lovefilm -- partner to Universal Pictures -- already offers a movie download service that serves up films from Warner Brothers on a rental basis, and Lovefilm CEO Mark Livingstone said he expects Warner Brothers and other Hollywood studios to follow Universal's lead in the download-to-own market, according to the report. Universal will kick off the service with a collection of 35 movies consisting of such titles as "King Kong," "Pride and Prejudice," and "Serenity." "King Kong" will sell for £20, which is comparable to the retail price, and the films will be accessible to consumers via America Online.


Filed under: industry
Other story tags: digital music/video

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LOL
0
03/23, 1:34pm, EST
Like that's gonna take off. There is a bigger chance of winning the lottery 10x than for this to succeed.
Fresh-Faced Recruit
Joined Apr 2005
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Okay...
0
03/23, 1:55pm, EST
You said it yourself MacNN, Apple only has 1...so...exactly how does this 'take on iTunes'? I'm sure the UK has a Blockbuster (or NetFlix) variant who is really concerned with this move.

Geesh!
Grizzled Veteran
Joined Dec 1999
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Mobile device?
0
03/23, 3:41pm, EST
This makes sense for studios in that they can cut out the middleman reseller, like Costco, etc. and keep a little more profit. I don't think it changes the rental industry much since the prices are the same as current sales prices. So in some ways this doesn't change much at all except that it gives a minor convenience to sales to people who want the movie within the hour.

Where iTunes has made its mark is in the mobile market. How does the digital download compare size and resolution to the iTMS video? What devices can use it?

I expect Apple's answers to these questions are better than Universal's answeres, but I am still waiting for the promise of the scalability of H.265 which was to make all video viewable from cellphone to iPod to laptop to TV. If Apple can do that, and deploy it THIS year, then they have no worries.
Fresh-Faced Recruit
Joined Apr 2004
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I heard the rumored price
0
03/23, 10:01pm, EST
I heard the prices are from $17.50 for older movies and a whopping $35 for new releases. I'm sorry I can get new releases at the store in DVD format, case and all for $15 and ripp them myself easily. The prices should be more like $7.99 and 9.99 for new releases because all's your getting is data. No case, no cover and no DVD. Greedy as usual seems to be the norm. This will fail because it's to expensive. I'd rather rent from netflix.
Fresh-Faced Recruit
Joined Apr 2005
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