Apple, Hollywood "split the difference"
updated 05:55 pm EDT, Thu September 7, 2006
Home run for Apple?
A new report says that Hollywood studios and Apple reached a compromise over the cost of digital movies by splitting the difference, and while the compromise could cost both sides millions of dollars, it may not be enough to reach more users. The report follows a slew of other reports that indicate that Apple is prepping its own digital movie service. Apple will reportedly charge $15 per movies, after the studios wanted to charge $20 and Apple wanted to charge $10, according to researchers at the Diffusion Group in Dallas. "The decision will likely cost both sides millions of dollars. Only 14% of broadband households would be interested in an iTunes movie service if the films cost $15. At $10, almost 1 in 4 homes show interest, TDG found in surveys. The firm's report on the viability of an iTunes service also suggests that Apple will hit a home run if, as AppleInsider speculates, it announces next week a wireless video accessory for the iPod to beam movies to the TV set," MarketWatch reports.
but what do you get?
09/07, 06:18pm reply
For $15 I can find almost all movies on DVD, meaning high quality video including all the extras, and I can make a copy for my iPod too.
If the service won't let me burn my own DVD, it's going to be DOA. My guess is that Apple is smart enough to know this. But for $15 if I am just getting the movie, not in DVD quality and not with all the extras, why would I buy it?
luomat
Fresh-Faced Recruit
Joined: Jun 2006
Rentals?
09/07, 06:23pm reply
Now that I don't travel for work anymore, I haven't bought a movie in years. There really aren't that many movies I will watch so many times that it makes sense to buy it. And now that I have an HDTV, what happens when the HD version is available? I either have to rent it anyway or buy it again. It's just not worth it to me to own the movie. Would I use a download rental movie service? If the quality was there (IE minimum DVD video quality and Surround Sound), sure would.
I want to own my music, I want to rent my movies.
jasong
Mac Elite
Joined: Mar 2000
Ipod Shuffle TV Model
09/07, 06:46pm reply
Went to openings at theaters. Got stacks of disks in closet. Got many ripped files on hard drives. Now what. I have no time to watch them. It is a busy world.
I hope Apple makes a lot of money with this fad. For a while at least. Just as Dell sold a computer to everyone in the country, non user people will wonder. Why do I need such a device. Sales will plummet. However for investors, the first few years wil be great.
Need the streaming device for my cable (ipod shuffle model) random viewing experience in any room.
starwarrior
Fresh-Faced Recruit
Joined: Mar 2006
www.apple.com/movies
09/07, 09:13pm reply
If you go to www.apple.com/movies you get a Forbidden: you are not allowed to view /movies. This is unlike entering /iflicks, etc. in those cases you receive the normal "Are you looking for something at apple.com" statement. Shows were you will find info about movies in the near future. :)
bradbissell
Fresh-Faced Recruit
Joined: Aug 2003
However
09/07, 10:18pm reply
15 bucks for a HD movie w/ DD 5.1, that might be interesting.
paulc
Junior Member
Joined: Aug 2000
doom to fail...
09/08, 12:00am reply
...from the start. why d/l a less than DVD quality movie I can't keep, for more than I can buy it on DVD with the extras at bestbuy[.com] or deepdiscountdvd.com?
gizmovision
Fresh-Faced Recruit
Joined: Aug 2002
jasong
09/08, 04:27am reply
You say: > I want to own my music, I want to rent my movies.
...and I believe that Apple knows that, and you will get exactly that.
While the focus is on purchase prices, no one is paying any attention to the man behind the curtain readying a movie RENTAL store.
While purchasing movies will most likely cost $14, you will probably be able to rent a movie, for, say, $5 or less, which a LOT more consumers will choose to do.
I mean, do the math:
14,000 users at $15 - 210,000 25,000 users at $10 - 250,000 or 75,000 users at $5 - 375,000
Who'd make more $$$, what would result in more repeat customers?
You got it!
ZinkDifferent
Fresh-Faced Recruit
Joined: Jan 2005
9.99
09/08, 06:55am reply
For lower than DVD quality 9.99 Is the sweet-spot, rental is ok at $3-$5. Not that i really care, Europe isn't on there map yet.
Peter Bonte
Fresh-Faced Recruit
Joined: Aug 2001