updated 02:05 pm EST, Tue February 26, 2008
Steps to ousting Apple
Two research firms -- Park Associates and Entertainment Technology Center at USC -- have released a document urging Hollywood to use Apple's own tactics of offering low-cost TV shows and feature films for mobile media devices in an effort to reap profits on their own, cutting the Cupertino-based company out of the equation. "Hollywood shouldn't let Apple make all the money, especially since they are the ones making the movies," said John Barrett, director of research at Parks Associates. "Judicious use of free mobile content can help drive ticket and DVD sales." The white paper specifically details steps to achieve profitable distribution of mobile content on mobile platforms and devices, without Apple's help.
"Many content owners have tried re-purposing TV and movie content on mobile devices and have largely been disappointed by the revenues on those platforms," said David Wertheimer, Executive Director of the ETC@USC. "While we believe wholeheartedly in 'Anytime/Anywhere' availability of content, we also know that these devices, when content is created specifically for them, can create opportunities for marketing and selling content elsewhere, especially now, while consumer habits are just taking shape."
Park Associates says less than 10 percent of internet users are willing to purchase a digital movie download at current prices, and suggests Hollywood drive consumers to new theatrical releases as well as TV programming and eventually made-for-mobile programming by using Apple's own tactics of offering low-cost downloads.