Will iPod movie rentals take off?

Video rental comes to the iPod. Can Apple finally make download video rental succeed for a portable device?

(Credit: Daniel Terdiman/CNET News.com)

From an iPod perspective, the biggest announcement from Macworld 2008 has to be iTunes video rentals. Beginning in February, those of you who own an iPhone, iPod Classic, iPod Touch, or 3G iPod Nano, will be able to rent and transfer movies from iTunes. iTunes movie rentals will be priced at $3.99 for new releases and $2.99 for older titles. While I'll have to wait and see how well renting movies in iTunes works, at first glance this looks like a huge win for the iPod.

Only a few competing MP3 players have dipped their toes into integrated video rental services. Specifically, the Archos line of portable video players and the Samsung YP-P2 have an arrangement with CinemaNow, which allows identically-priced movie rentals. While Apple might not be the first to pioneer DRM-protected movie rentals, no one has pulled it off at this scale. The built-in audience of iTunes users and iPod owners provides a staggering amount of leverage for Apple to completely change the way people rent and watch movies. But will it really stick?

From my point of view, Apple's video rental DRM strategy is a big roadblock to people renting movies specifically for their iPod. Apple's rental terms afford users 30 days to decide when to watch their downloaded movie rental, and then 24 hours to finish watching it after the movie has started. For users who are renting movies to watch at home, Apple's rental terms seem adequate, if a little stingy. At home, most of us are free from distraction and will have no problem consuming a movie within 24 hours of starting it. On a portable device, however, I predict that the 24-hour limitation will be very frustrating.

Unless I'm on a transcontinental flight, I have a tough time getting through a full movie on a portable video player. I usually watch half of a movie on the departure flight and half on the return--a scenario that wouldn't work with Apple's proposed DRM scheme. Apple's PR representatives at Macworld touted the ability to start a rented movie on a computer or Apple TV, and later transfer the video to an iPod to finish it on the go. While I'm happy Apple's rental DRM-protection doesn't hamper the transfer of movies between devices, the idea of rushing to finish last night's movie on my morning commute seems needlessly stressful.

Why can't Apple's movie rental DRM simply allow users one complete play of the movie, digested in as many small doses as needed, within a 30-day period? Wouldn't that be a more user-friendly approach? What advantage does the 24-hour restriction afford Apple? Whatever money Apple makes from customers renting a movie twice because the DRM expired, can't be worth the frustration it causes the user.

So what do you guys think? Will an iTunes movie rental make it onto your iPod in the near future, or will the DRM make renting strictly an at-home activity? If Apple's offer isn't perfect, what would seal the deal for you?

[Bagelsaurusrex]

I think that the iTunes Movie Rentals are going to take off eventually, but I personally don't want anything to do with them.

Honestly, 24 hours? If I ever even consider using my iPod for watching a full-length movie as opposed to just TV shows, I'm hardly ever have the time to watch the entire thing in one sitting, and end up breaking it up into a bunch of bits and segments. Maybe it's just because I'm a student, but if I do decide to watch an entire movie, I usually don't turn to my iPod's 2.5 inch screen. I think it's unreasonable to be offering a portable device that lets you enjoy that sort of content everywhere, and then limit it to a really narrow time period.

anywho, just my two cents.

[restoration85]

Didn't Movielink already try this a few years ago?

[brass2themax]

I think it's really sad that people sit on buses or other forms of public transit and prefer to watch a movie on a miniscule screen, rather than read or (even better) watch what's going on in the world around them, or take in some local scenery out the window.

People in general these days would rather pay more attention to their stupid cell phone or portable device rather than engage in social conversation or, at least, observe their surroundings.

I'm 21, and I'm saying this. BTW, I'm not poor, I can afford such devices, but I'd rather not be glued to a tiny screen all through my day. Couldn't handle it.

[tlowell01]

I agree with your point here. When I was an undergrad (1997-2001), I used to enjoy the conversations with people that I met on the hike across campus and to and from the dorms/fraternity house. In fact, that is how I made some of my closest friends.

Fast forward to grad school (2005-2007), I would walk around campus and there was no interaction between between anyone. Everybody had little white earbuds in their ear. I thought it was really sad that friends would walk side by side listening to their respective ipods rather than talking to each other.

Come on people, free yourself from your Ipods for just a little bit during the day. Who knows what you might see or who you might meet. :)

[vladicaster]

The limitations around the rental rights has nothing to do with Apple. It has more to do with tme movie studios. They will not let Apple break up the 24 hour viewing time, nor will they give Apple subscription rights to content (like NetFlix), or access to rentals until 30 days AFTER the DVD has been out. This is simply due to the Movie Studios Release Windows system. These windows incude "Theatrical", "Home Video", "Pay Per View", and "Cable". Each window has its own set of limitations as far as to where the movie can be played, on what device, and for how long. Apple has clout. But not enough to change the release windows.

The whole goal of this service, i think, REALLY, is to get people to buy Apple TV's!

They did GREAT with the iPod and are doing very well with the iPhone, but are trying VERY hard to be the FIRST to get Internet-Delivered Video right! I hope that it works, but, I do NOT think it will be as successful as they want it to be because:

1. Most people will have issues wiring the Apple TV to their home network. Those that manage to go wi-fi will have a less than stellar experience.

2. The selection of titles is fairly small (compared to just subscribing to Netflix or Blockbuster)

3. The rights to high quality Interenet-Delivered content are limited due to the major studio windowing scheme.

4. Most people can get the same exact service on their home cable box, and with FREE VOD from many of the cable networks. WIth Apple TV, you have to plop down $230 for the box and pay for EVERY show. There are tons of FREE choices that come with cable VOD now (from HBO, Showtime, etc..).. and the built-in DVR gets last night's show (that I may have missed)

Now, I DO believe it's all about the content. The reason why we got cable TV, is so that we can get MTV, HBO, etc.. If Apple produced good original content (VIdeo Podcasts?) EXCLUSIVELY available via the Apple TV.. well.. now, we're talking.. :)

Thoughts?

[tlowell01]

I already own and AppleTV, and I love the prospect of this service. I have an HD Tivo with cable cards, so VOD is not an option for me (technological foot dragging by the cable companies to keep you locked into their proprietary boxes). This service fills in very nicely!

I would also like to comment on your first point. I have AppleTV connected wirelessly to a draft N router. The set up was simple and took all of 5 minutes. I stream movies from my computer flawlessly with buffering taking less than a second when starting, rewinding, or fast forwarding.

[nnjim]

It clearly states on iTunes website that you can watch the movie as many times as you want within the 30 days. Nothing is to stop you from watching half of the movie. Stopping. Restart the movie and fast forward to where you left off.

I have read several uproarious articles so far about this assumed limitation of one shot at pressing play and done. Seems like someone would have surely just checked the actual website.

[NeverFade]

You're misinformed. Once you rent from iTunes, you can have that video on your computer ( or where ever ) for 30 days, meaning if you don't want to watch it right then and there, you don't have to. HOWEVER, once you start the movie, from that minute you have 24 hours to watch it. You may watch it as many times within 24 hours as you want, but it's still 24 hours from the time you start.

[Azzuro10]

Movie rentals is more about Apple TV and viewing at home then it is about watching it on your iPod. Honestly, I wouldn't watch a whole movie on an iPod anyway...unless i was on a plane in which case the battery would run out before you get a chance to finish it. No.....people are more likely to watch rented movies on their PC or TV - hence the increase in resolution and the adoption of surround sound.

The fact that you can rent a movie directly through your TV without using your computer is the big breakthough in my view. People don't like the idea of buying something they cannot own physically particularly if you are only going to use it once or twice - this is different to music. BUT....will people sit on their chair and order a movie through their big screen TV without the hassle of going HMV or Blockbuster? Hell yes. This is about convenience and convenience is always underestimated. This is why it will be successful this time around. People will care less about DRM if their intention is to rent it and watch it at home - especially if it streams in less than a minute after ordering it.

This time Apple TV is a winner (only gripe is that I would have loved them to have included surround sound on the DVD quality movies). They have the most studios and they have the largest customer base.....prices seem reasonable....so it will be a success - no doubt about it this time.

[denispb]

I live in Brasil and I bought 2 months ago an ipod touch 8GB. Today I try to update the touch´s sw through itunes. And for surprise only us residents can perform this update. My intl credit card has a Brasil billing address not a US billing address... I´m feeling like a clown with a red ball nose....

[poopster]

get a zune

[Smegz]

The ability to watch the movie once. I think everyone at Netflix just breathed a sigh of relief. That DRM is miserly. First, you should be able to watch the movie more than once should you desire. Second, if they are going to keep it to only once, try and make it cheaper than going to Blockbuster. $4 to watch a rental once? That's a rip off. And, why have the 5G iPods been left out? As the author put it, in a portable situation, i.e. travelling, you may not have the time or inclination to watch the whole movie in one sitting. I'll keep Netflix and enjoy watching movies on my laptop wherever I can get an internet connection.

[rufustel]

Nnjim, you are right, you may watch the movie as many times as you want, but only within a 24-hour period. The 30 days is the period in which you must use your viewing rights once you have downloaded the movie. Hence, people's complaints as to the 24 hours.

[poopster]

Why would I want to pay $4 or more for rentals I can get for more than half that price? I can get movie rentals anywhere now. The supermarket, Blockbuster even McDonalds.

I noticed Comcast even raised their On Demand service to $4.99 for rentals. Digital downloads and on demand is cool, but come on what a crime.

[tlowell01]

I am very excited about this service. I have had my AppleTV for many months and loved the convenience of having access to my entire movie collection in electronic format on my TV.

This rental model just sweetens the pot. I love the convenience of on-demand video rentals, but I can't get them through the cable company (I have a HD Tivo with cable cards, so all pay per view functionality is turned off). In addition, I will be able to get HD quality without cluttering my entertainment center with a blu ray or HD dvd player. (Yes i know it is 720p versus 1080p, but on a 37" tv, its TOUGH to tell the difference).

The DRM restrictions don't bother me since I will primarily be watching them through my AppleTV. If i don't have an hour and a half to watch a movie, I usually watch something from the tivo anyway. The only place I might get annoyed is if I am traveling and can't get through the entire movie on the flight. This doesn't bother me too much though since usually there isn't much going on in my hotel room, so I can just finish it up that evening.

Kudos to Apple for this one.

[yogachuck]

The key insight here is that the movie rentals are all about Apple TV and your big screen at home. hint: HDTV for your iPod? :)

[buckarez]

Why can?t this work just like a standard Netflix queue, but without the actual discs? Here?s an example:

01. Open ITunes movie rentals and what do you see? A queue of the movies you want to watch (just like Netflix).

02. You pay a MONTHLY fee, not per movie, which gives you access to a predetermined number of titles at the top of your queue. If you pay 15$ a month, you get access to the top 3 titles on your queue, for example.

03. After watching the movie, you can either purchase the film (save it permanently to your computer, apple tv, whatever) or you delete it, which then bumps up the next title up on you queue.

I believe the counter argument to this model is that it will make it easier for hackers to permanently save the movie if they follow this model. But you know what, hackers will figure out a way to permanently save the movies REGARDLESS of the accessibility window. If someone wants to figure out a way to hack it, they will, no matter if they have it available for 24 hours, 30 days, or for an unlimited amount of time.

I hope Netflix?s move to go unlimited pushes apple to do the same.

[iasthai22]

This iPod movie rentals is going to take off and be largely successful. iTunes sounded like a total rip off just a few years ago when a competing Napster was offering $16/month unlimited downloads without the DRM and completely capable of playing in any mp3 player. iTunes won that battle as consumers were lured in by trendiness of Apple and the iPod. Apple has become a brand name and people are willing to pay a premium for it, even though its services are vastly over priced.

[Alexjhp]

24 hours is way too short for an iPod maybe for apple TV, which would basically be the Apple On Demand. Anyhow, doesnt amazon already has this? and I remember that there were three day rentals but I cant remember if it was amazon or CinemaNow, which also offers direct movie downloads on the new Archos. Once Apple tries something the whole world follows, even if numerous others have already done the same thing.

[minimalist]

I predict iTunes movie rentals will be a huge success because it has both the built in user base AND the support of all the studios, a combination that no-one else has been able to do thusfar.

All other VOD services (cable boxes, vudu, xbox 360, etc) all suffer from one big problem... lack of content. Some studios have signed on for some services but not for others. Ones that might have decent studio support don't have the installed hardware base to get the content to the TV and onto (popular) portable devices. ITunes and iPods are ubiquitous AND they have all the studios.

Will it kill Netflix? We'll see. Maybe in a 5-6 years but even then I'm not sure. One thing that Netflix has that no download service has is a deep collection of films. Lots of people use Netflix because you can find almost any movie or TV show ever made there. Current VOD selections are comprised of just a few hundred blockbusters. Want anything other than Spiderman or harry Potter and you are out of luck. And even though Apple TV seems like it will have a much better selection, they still have a long way to go to catch up with Netflix's selection.

[ktreb]

It's alright. I don't think I'll be using it, though. I can go to the grocery store and rent a movie for $1.50. My gripe would have to be that rentals are not playable on 5th gen iPods. Not that I would even want to watch movies on that small of a screen, now that I have a Touch.

[phsdancer37]

1- blockbuster just raised prices to over $4 for a movie rental.
2- Amazon Unbox does this already, except the software is full of flaws!
3- Some cannot read or watch the world on trips because it makes them sick. I don't really think watching a movie on a tiny screen is better but whatever,

Finally... I can already rent movies from itunes. I downloaded the new updates for my ipod and itunes and it was there. And I've read from other reviewers that they've already rented movies. So I'm confused about the first wave being av. for dl in Feb.

Personally, I used Unbox once because I wanted to see an older movie and an indie flick which my Blockbuster didn't have. I still have another year at school and we allow free rentals for 24 hours, so I guess the 24 hrs. thing isn't crazy for me. I would choose itunes over Amazon anyday.

[fs4724]

I have the "5th" Generation Video iPod purchased this past summer which will not work with iTunes Movie Rentals. It does work with movies and other video purchased from the iTunes store. I use it with the iPod video dock to play the content on my Sony XBR TV via s-video input like a budget Apple TV. So I will not be renting any movies. I was not happy that only the latest iPods work with rentals. Note that Apple refunded my (first and last) rental and gave me some free music track credits - but I would rather have movie rentals work on my iPod. Probably a DRM issue with the 5th Gen.) I think the pricing is a bit high for movies out on DVD for 30days but it is all about convenience. Hopefully Steve can negotiate a better deal for customers once it gets rolling.

[SINBAD]

No. I do not blieve people would want to watch a movie on such a tiny screen that you can hardly see. After all, TV's have just been getting bigger and bigger. Better stiil, watch it in the theater. You can't beat that with a stick