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October 16, 2008 10:20 AM PDT

Why iTunes makes Blu-ray useless

by Don Reisinger

Apple announced today that it has not only become the world's most popular TV programming store, thanks to 200 million unit sales of TV shows, but that all four of the major networks--CBS, Fox, ABC, and NBC--are offering high-definition content on the iTunes store.

"We've got an incredible fall 2008 TV lineup with over 70 prime time comedies and dramas, including many of the most popular shows on TV in stunning HD," said Eddy Cue, Apple's vice president of Internet services. "With over 200 million episodes sold, iTunes customers have proven they love watching television on their computer, iPod, iPhone and TV with Apple TV."

If Apple is the world's leading store for buying TV shows and the world's largest music retailer, how can Blu-ray and it's measly 8 percent market share, expect to compete with Apple's freight train as it starts to pick up steam in the movie space?

I contacted Apple for its latest movie sales figures, but the company didn't provide any. Because of that, I'm forced to consider the fact that as of this past January, it had sold 7 million films on iTunes after 15 months of availability. Consider the fact that Blu-ray hit the 7 million-units-sold mark after 18 months, and it's quite obvious that people are ready and willing to download films instead of buying an expensive player and media to go with it.

Granted, the movies Apple has sold are standard definition and of the 2,500 films currently offered on iTunes, the 600 HD films can only be rented, but does that even matter?

When we consider the cost of ownership between Apple's integration and Blu-ray's, I simply don't see how it would make sense on any level to choose the latter. Not only are Blu-ray players more expensive than an Apple TV, it'll run you about $30 just to have one HD movie in most cases. And if you want to rent Blu-ray films from Blockbuster, it'll be $5.99 and you'll be forced to leave the house. The way I see it, the only logical way to get Blu-ray films into the house is through Netflix and even that company has raised its rates by $1 to make up for the additional cost of providing Blu-ray movies.

iTunes may just be a store, which may make it difficult for some to compare it to Blu-ray, but I don't think that's the case. Sure, it may be a store first, but when it comes to choosing and watching movies, it's no different than a Blu-ray player: you choose your movie with a remote, click play after buying or renting it, and watch the film on your HDTV with the help of your Apple TV. Oh, and by the way, that HD film you just rented costs just $4.99.

The only obstacle standing in the way of Blu-ray dying at the hands of iTunes is the fact that you can't buy HD movies on the service. But let's face it--if Apple went out of its way to tell us today that it's offering HD TV shows on iTunes now, don't you think that HD movies are right around the corner? I give it weeks, not months.

Blu-ray's decline will result from the popularity of the DVD too, but when we finally find a more suitable alternative to discs, it will be iTunes that will come out on top. Apple haters may not like to hear it, but at this point, I don't see any other downloading or streaming service that has the customer base to compete with Apple. And in turn, I simply don't see how Blu-ray can compete with a service that provides people with what they want: HD content directly in their homes.

iTunes is growing at a rapid rate and it's no longer just a music store. And as more consumers find that they can have HD content in their homes with little or no effort, iTunes will claim another victim.

Check out Don's Digital Home podcast, Twitter feed, and FriendFeed.

Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.

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Add a Comment (Log in or register) Showing 1 of 4 pages (80 Comments)
by leganx October 16, 2008 10:38 AM PDT
When I can get fast downloads then iTunes would make sense for me. I live in Los Angeles and can only use DSL. My neigborhood is crowded with users making it very difficult to download anything of large size in reasonable amount of time.

In the meantime, I will have my blu-ray movies served by netflix which I think is still a much cheaper and easy to use alternative to itunes.
Reply to this comment
by savagesteve13 October 16, 2008 12:48 PM PDT
DSL is not a shared network like cable modems. You can't attribute slowdowns to all your neighbors because DSL doesn't slow down during heavy use hours. I've had DSL for 5 years and its always been pegged at the speed I pay for which is 6 mbits/sec. With 6mbit DSL downloading HD movies would only take at the most 30 minites per movie if it downloads completely then plays. If it is streaming then its on demand real time.
by Ian_Morris October 16, 2008 10:42 AM PDT
Blu-ray = 1080p
iTunes = 720p

My TV = 1080p

I'll stick with blurry thanks :)
Reply to this comment
by bubblebathgirl October 16, 2008 12:03 PM PDT
Me too!
by bubblebathgirl October 16, 2008 12:03 PM PDT
Me too!

... and renting movies? I haven't done that in over a decade.
by myles taylor October 16, 2008 12:33 PM PDT
Is it okay that I find it funny that you said you'd stick with "blurry"?

That's fine for those who choose to do so. The point was that most of the market disagrees with you. Not that 8% that uses blu-ray of course, but a lot of it.
by pjmaley October 16, 2008 1:59 PM PDT
depending on your tv size most people cannot tell the difference between 720p and 1080p. I have a 55 in plasma, a blu-ray player and an AppleTV...they look and sound the same to me.
by aztec92154 October 16, 2008 4:06 PM PDT
What percentage of the population have tv's that are so small that 1080p would NEVER make sense over getting a 720p/1080i tv? Most? What percentage of the population currently have 1080p tv's? Lets face it, Blu-ray is a niche product. I want a download service that will only charge me for 720p for a tv that doesn't support 1080p
by Zen-Masta October 16, 2008 11:01 AM PDT
I would only consider buying movie downloads if they were DRM free (don't have an iPod or use so I don't know). Also, was the ratio in price increase from VHS to DVD the same as DVD to BR? I don't really remember but I sort of thought the pricing was the same 15-20 bucks each, then when dvds came out they were 15-20 and then vhs were about 10 or less.
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by volterwd October 16, 2008 11:01 AM PDT
I will never purchase online for several reasons

1) download cap on my internet
2) download time
3) Many downloads (TV HD too) are only 720p
4) DRM (I don't expect to play bluray on anything other than a bluray player but i expect my downloads to play anywhere that can play them)
5) I like owning the physical media (+ i can re-sell the physical media)
6) When i-tunes stops supporting the DRM you can no longer move it... yeah BS
Reply to this comment
by lawgone October 16, 2008 12:01 PM PDT
Very good points. I think there will always be a place for phsyical media. Another I'll make is that say you decide you want to change to a different manufacturer of your Blu Ray player, you still keep all your movies. If you wanted to change from Apple to something else, you couldn't. You would lose all your movies. That's another problem with DRM...it's not transferrable. In other words, there is more value in a piece of physical media than there is in downloaded media. Hmm, I just realized I'm kind of stuck to iTunes for my music for life - unless I'm OK with losing all the music I've purchased over the past 5 years.
by sonymaster101 October 16, 2008 11:04 AM PDT
hah. what a joke. the itunes "hd" movie quality cant hold a candle to blu ray. washed out colors, lower frame rates, not to mention its only 720p.
Reply to this comment
by pjmaley October 16, 2008 2:01 PM PDT
are you joking? very few people (and I would argue that people that say they can tell the difference are fibbing) can see a difference unless you have a TV larger than 50 inches.
by compudoc318 October 17, 2008 11:30 AM PDT
pjmaley, thats bs, i have a 1080p 42 inch and if you have a nice bluray (ps3) and hdmi, its a very noticable difference
by jamie_smith July 31, 2009 10:28 PM PDT
Agree with you. BLURAYs, even DVDs, have much more color depth, color accuracy, artifact free imagery, audio fidelity than ITUNES HD and SD downloads. It is matter of bit rates. ITUNES has to have a highly compressed low bit rates to maintain small file sizes. DVDs and BLURAYS have much higher bit rates than ITUNES downloads. People have to remember that lines of resolution (480p, 1080p) are only one measure of picture quality; the rest like color depth and accuracy require high bit rates which ITUNES simply cannot afford now or in the future. Furthermore I love the extras on BLURAY and these are missing from ITUNES downloads. If you want real quality picture and sound you have to buy BLURAY.
by Live_Alive October 16, 2008 11:06 AM PDT
#1 reason why I will never buy a movie from the iTunes store: special features

I'm too much of an information hog to completely disregard all the extras you get when you buy an actual DVD. Deleted scenes, documentaries, commentary, bloopers, etc. None of that comes when you buy a movie from the iTunes store. When I do finally break down and start building my HD library, you better believe I will have copies in hand, not stored on a machine somewhere.
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by btravitz October 16, 2008 11:07 AM PDT
Yea, we have heard this rant before. You may be right that most people don't want or need the high quality that Blu-ray provides, but some of us do. And until the download service can offer 1080p with lossless audio there will be a market for Blu-ray. Blu-ray is picking up steam at this point and with prices falling on hardware you will see prices falling on movies also. By the way, I get my Blu-ray movies from Blockbuster online and they come very quickly and I get new releases. I don't pay 30 bucks for a movie. If Blu-ray has an 8% market share at this point I say ,way to go.
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by mdntcallr October 16, 2008 11:14 AM PDT
Honestly, I think you are missing the boat here with your article.
Blu-Ray has alot better options, extras, picture quality, sound quality.

Yes digital downloads have their place. I use them, but... Blu-Ray is just better. hands down better!

Sorry, consumers want a choice, and Apple is denying them that choice. Give the option for us to get a BD reading superdrive. give the option for a BD burning Superdrive for more money.

it is so ridiculous that you need to lobby your own darn favorite computer company to do something that other companies are offering for some time now.

Apple is starting to lose its Halo.
Reply to this comment
by fireballz October 16, 2008 11:15 AM PDT
was this a joke article?
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by zhakidd532 October 16, 2008 11:15 AM PDT
I don't buy movies very much, and I have no Blu-Ray player, so iTunes is easiest for me. I get it right on my laptop. Downloads in 5 minutes and i'm ready to go should I ever want to.

That makes tons more sense to me then going to a store and buying when I can simply push a button.
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by Haroon_Aslam October 16, 2008 11:23 AM PDT
What an outrageous article. Broadcast media as well downloadable just can not replace Blu-Ray, for the near future at least. The sheer size required for full uncompressed video and audio is ridiculous and only Blu-Ray right now is capable of carrying it. iTunes = Blu-Ray. Not likely at all.

HDTVs standards are set at 1080p... downloadable media can barely deliver 720p at a decent size while broadcast TV can not go past 1080i. Plus consider how many internet providers have download limits, how many shows and movies you watch will be ultimately limited. Portability issues and DRM is a major flaw that will prevent many from fully embracing iTunes, as a "replacement" for Blu-Rays. Who wants to sit and wait hours and hours for a movie to download, while their general internet is crippled in the process. Not to mention the destruction of speeds across networks we'll see if everyone adopts downloadable media as their HD standard. This is a ludicrous suggestion.
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by tcr071 October 16, 2008 11:30 AM PDT
You are comparing standard definition online movie sales to HD Blu-Ray sales when the comparison you should be making is 1080p iTunes sales to HD Blu-Ray sales. Blu-Ray sold 7 million movies in 18 months. iTunes has yet to sell a single 1080p movie. iTunes has yet to sell a single 720p movie. iTunes allows you to RENT 720p movies.

iTunes is not only not competitive in the HD media market they don't even exist because they don't SELL movies.
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by bitshiftr October 16, 2008 11:33 AM PDT
It's a difficult position to be in. On one hand, you have convenience but at the cost of quality. On the other hand, you have quality at the cost of convenience. Sure, if I have a 1080p television then I want to use it to its full capability. But at what cost? Naturally, a 1080p television will cost more, and then the media to use it will cost more again. From a purely financial outlook, streaming content at 720p is a very practical solution. Until my ISP will allow me to download hundreds of gigabytes of information at megabytes a second for $40/mo, for a price comparable to 720p or HDTV media, it would be financially irresponsible for me to invest money in a high-quality TV, only to invest even MORE money to use it.

Talk about hitting me where it hurts the most, my wallet.
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by bearvp October 16, 2008 11:34 AM PDT
Is this editor serious? First off, iTunes compresses the crap out of their movies so you will get worse picture quality on an iTunes download than you will with a Blu-ray movie.

Oh and also with the audio tracks. Blu-ray's storage capabilities allows the studios to offer uncompressed lossless audio tracks for the best sound possible. The iTunes versions again compress the sound, thus limits the audio quality.

And am I the only one who prefers to have a hard copy of my movies? Digital copies are handy and all but all it takes is a hard-drive to crap out and you lost your movie.
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by jeremykoerber October 16, 2008 11:37 AM PDT
Wow, looks like the readers couldn't agree more, huh? ;) That title was too good to pass up. I think we are all on the same page here when I say that we are a long way from Blu-ray being made useless by an online service. Most people don't have the bandwidth yet to make this option totally convenient, plus the picture/sound quality isn't there, plus the DRM. Charge me an extra dollar and send me my bluray from netflix anyday. In fact, i've abandonded Itunes even for music downloads. Amazon is much better in my opinion. I've found several albums that were cheaper there, NO DRM, MP3 format, and it even adds it to your itunes library after it downloads. Don't get me wrong, I think Apple makes great products that definitely compete well. But why does one good thing always have to make another useless? Use Itunes when you feel like it, pop in a blu ray when you feel like it, take a bath, take a shower, have your cake and eat it too.
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by dochiggens October 16, 2008 11:40 AM PDT
the 720p 1080p thing should be dead right now all of you that babble about this are like kids that talk about horse power in cars but really dont understand there is more to it then that.

The independent experts all tend to agree on this point.. 1080p is just about the least important factor in picture quality particularly if you are seated outside the physical boundaries where our human eye can no longer discern the resolution differences. This is a sliding distance scale which depends on screen size in relation to seating distance. Here's one such chart example:

http://hdguru.com/wp-content/uploads...ance_chart.pdf

Color accuracy, contrast, black levels, scaling/processing all come before resolution in importance. The smaller the panel, the less important resolution becomes UNLESS you will be using the panel as a computer monitor (where you'll often be seated within 4ft. of the display, and at a distance that close, you will much more likely notice & appreciate the difference). On a 37" panel, for example, you have to be within 5ft. to tell the difference. And that's under ideal circumstances.

Disregard any poster who suggests otherwise. They are seeing something other than the true difference between 1080p & 720p when they claim they can tell the difference even on smaller (37"-42") panels beyond 5-6ft. The difference they claim to see is likely to be in the processing of non-native signal, i.e., panels will typically display their native rate better than they can a lesser resolution which the panel then has to scale to match it's own.
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by gggg sssss October 16, 2008 3:27 PM PDT
then those blind as a bat viwers might as well stay with Standard Definition and just ignore HD anyway
by bri0831 October 16, 2008 11:41 AM PDT
I think "buying" a TV Show is a fricking joke, especially typical network shows.
Reply to this comment
by CptGreedle October 16, 2008 11:42 AM PDT
I think you are looking at it wrong... how can iTunes and it's measly .2%- market share for HD movies expect to compete against Blu-ray?
Not to mention they are NOT competing as you think. Blu-ray appeals to the disc crowd, the people that want the quality sound and video and a hard physical disc. Downloads appeals mainly to the renting and younger crowd. They are not as reliable, not NEARLY as high quality, and take much to long to access for main stream media. Don't forget that the internet was NOT DESIGNED to transfer movies like this. We have to expand the capabilities of the internet, but AS IT IS, ISPs are already charging people for high bandwidth use cause they download/upload too many movies. Blu-ray will never have these problems.
Besides.. Blu-ray has a 9-13% market share AND GROWING... which downloads consist of ... well.. less than 1% right now.
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by planblove October 16, 2008 11:46 AM PDT
Once the price of Blu Ray players and movies come down your argument will be in the garbage. Blu Ray will eventually overtake dvds once the price of Blu Ray tech is comparable to dvds, its that simple. Right now Blu Ray is still an expensive option for many and doesn't really justify its price for the average movie purchasing consumer. Jumping from DVD to Blu-Ray isn't the big jump in technology it was when consumers jumped from VHS to DVD, so nobody is in a hurry to switch. But eventually that switch will happen. And when it does, again, this argument will be non-existent.
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by craigfaircloth October 16, 2008 11:53 AM PDT
I do agree with you and have thought the same thing since the blueray player came out in the first place. That it was a half set in technology and not the next thing. Just like the huge laser discs that came out before DVD's. The xbox 360 has been offering this service for a while now, although they don't have the same selection as apple. There is one flaw in the theory and that is bandwidth. The time I tried to download an HD movie using my xbox it took over an hour for me to be able to use it. If people continue with the trend of downloading movies it will take up even more. The internet infastructure needs to change for this to really take off and become more than a trend.
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by PCUser2008 October 16, 2008 9:18 PM PDT
sounds like you have a slow connection speed.....
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About The Digital Home

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

Don writes product reviews for InformationWeek and is a regular contributor to Processor Magazine. You can visit his personal site at DonReisinger.com or if you would like to email Don with questions or comments, drop him a line at CNETDigitalHome@gmail.com. He is a member of the CNET Blog Network and is not an employee of CNET. Disclosure.

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