Comments on: Why Steve Jobs has pulled one over on the entire movie rental industry

With iTunes movie rentals now available, Don Reisinger thinks Steve Jobs pulled a fast one on the online rental industry. Is he right?

[JC-G35]

While I do not consider myself a "zealot," I do believe that the Blu-ray format is clearly the most viable format for viewing HD content; particularly considering the apparent death blow recently dealt to HD-DVD by Warner Brothers. And while receiving video rentals via vudu, Apple iTunes or any other combination of networked hardware/software applications is definitely appealing, the reality is until some combination of compression improvement and/or bandwidth expansion occurs, video on demand movie rental simply cannot compare to the picture quality and buying or renting a Blu-ray disc.

[gfallar]

Am I the only one that thinks the additional buck for HD content is cheesy?

Don, I think you're seriously underestimating Netflix and the loyalty of their customer base.

I suspect the pricing of the service that Netflix eventually provides will be one of the bigger reasons to stay away from iTunes. Right now they offer unlimited downloads of a subset of their available content with the obvious problem of delivering it to your TV. They say they're working with hardware vendors on the final delivery piece, it would need an interface easy enough for my 70+ year old mom to use of course.

Sony has a pretty interesting device with an Ethernet port that mounts behind a bunch of their TVs to deliver internet based content. It's a few bucks more than the Apple TV box, but it's accessible through existing Sony remotes and NOT proprietary to iTunes. If there were an interface to Netflix, I'd be going that way this afternoon.

The next year in this game is going to be fun to watch.

[E B]

There are two major problems with iTunes plans, as currently announced.

1. Broadband isn't yet as common as it needs to be for this to "kill" DVDs or high-def DVDs.

2. Some movies you simply don't want to rent, you want to own. Seriously, you expect me to cough up $4 every time my kids want to watch the latest Pixar release? Charge me $40 for a disc, I'll still save money in less than two weeks!!

Pay-per-view is Hollywood's wet dream, but many customers don't want it as their only option. So while it may take off, and do well at the expense of DVD/Blue-Ray, it won't kill either format. Because sometimes you just want to own the content, and watch it as often as you want without limits.

The second issue is a killer -- one they can address by offering a "permanent unlock" option. But until that day comes, it will still be only the few technically saavy or Apple zealots who really flock to this option.

[biggstuu]

Obvious, you didnt either watch the keynote or get the full information regarding the other side of this equation. It's not meant to be the end-all/be-all for the movie business. The Chairman/CEO of 20th Century fox came on the stage and announced that they would be including a digital copy made for transfer to Itunes based devices (iphone/ipods/macs/pcs) on new DVD/BR based releases, Family Guy being the 1st. He discussed this being a complimentary step, offering consumers the ability to do what they will with their content and enjoy it across multiple platforms as easily as possible.

[aztec92154]

Is this a reasonable request?

Here's whats missing.... the option to buy. If I rent a hi-def movie for $4.99, I want to option to buy the full movie for an extra $14.99. I want to be able to watch it on my iPod, iPhone, or iTunes. I would also like the option to burn it onto a DVD or Hi Def DVD. Is this a reasonable request?

[howdijul]

until when? 6 months...1 year, maybe 2. Blue Ray will mature faster than any technology we've seen to this point and become obsolete faster as well.

[aztec92154]

@howdijul

I think that if I pay for a rental, the store should remember that I rented it as long as my account is active. If I decide to purchase the full movie, I should be credited for my rental in the same way Blockbuster will credit my rental fee towards the purchase of a full DVD purchase.

The ability to burn to DVD or some Hi Def DVD would just be icing, its not necessary. I just want to be able to rent a movie, and if I like it, have the option to buy it. I want to rent-to-own, if you will.

[rcrusoe]

Is (burning a copy) it a reasonable request? Yes. Will the movie industry ever allow it - not a chance.

[hongcho]

I didn't see anything that different from Xbox Live Video Marketplace (which has been online since 2006).

I think Amazon Unbox is better (except for the HD) in that they have a purchase/buy option. Also, I can use my TiVo box for Amazon Unbox.

I think Apple's (and Xbox's) approach of a closed system will lose out to Amazon Unbox or Netflix where they are soliciting third party STB manufacturers to have their services available on as many (multi-purpose) boxes that are connected to TVs as possible.

Hong.

[jrw88]

Why would someone consider using something besides this service that's a day old? Hmm. ok, because I have a TiVo that's got a WiFi connection to the internet and Amazon's Unbox delivers a pretty high-quality video file that sure-as-heck beats the videos I've bought off iTunes. They both have the same encumbered DRM, but if I pay full price to Amazon, I can re-download it another time. (That said, why would I pay the same price as a DVD to anyone and NOT get all the higher quality/special feature/etc? well, I haven't yet. But $1 - $4 for a rental, sure. I'll save that in gas these days.)

[seatrooper]

I'm a fan of HD content -- I own both formats and have several Blu-ray and HD DVD discs.

And yet, the Apple TV 2 is tempting me, because I occasionally rent a movie, and it would be most convenient for me to use an Apple TV to get one on my home theater. (I also got some Apple Store gift cards for Christmas!)

Nevertheless, I don't want to sign up for a monthly service that I may or may not use; my desktop PC is not close to my home theater, so forget the online content from Netflix; my local Blockbuster (30 minute round trip) doesn't always have the Blu-ray film I want; and I don't own a Tivo and thus UnBox - I have EyeTV with OTA and QAM signals on my MacBook.

Downloads may well be the future, but I still enjoy watching all the extra features you get on a Blu-ray or HD DVD disc. It's just that the Apple TV could provide me with convenience and good quality at 720p and Dolby Digital.

[Groucho6]

It's simple. You buy children's movies because your young kids will watch them again and again until the DVD wears out (and yes, they do, trust me). But how many adults watch movies over and over? How many of us have old VHS or DVD movies on the shelf we haven't watched in aeons? Exactly. Rental is the way to go, as long as the price is reasonable and the convenience level is high. As usual, Apple will cover both of those bases. I wouldn't touch the original Apple TV because it had no high-def. Now that it does, I'm in. So will a lot more people across the continent.

[willyhoops]

YOU HAVE HIT THE NAIL ON THE HEAD! But there is one more point.... what if Apple go on to release a $20 a month service that gives you unlimited access to every CD in the world and the ability to copy anything you like to the iPod (secure from piracy and unable to play if you end the subscription). That's the next obvious step and gives Apple control of Video and Audio. Those shares are looking tempting...

[gboris]

The elephant in the room is cable TV VOD. That is what Apple is competing against here. The fact that most people already have the cable box on top of their TV will seriously hamper Apple's efforts. The portability issue is only important to a tiny segment of the audience. Many people who rent more than a few videos per month already know that Netflix's model is better and will patiently wait for it to be replicated online before moving.

[kevinobvious]

At $4.99 I'm only able to watch 3-4 HD movies at the coast of my Netflix subscription. The rental price is still too high for me to give up on Netflix. It needs to come down just a bit to about 5-6 HD movie rentals per month for a single Netflix subscription. IMO they should have kept the price the same for HD versus non-HD movies. I would have been much more inclined to hop on the Apple TV bandwagon.

[Desdichado]

Add the option to buy the HD movies (and upgrade those you already bought like they did with iTunes+) and a Netflix-like monthly payment and queue -- and I think Apple TV takes it away. That combination makes me cancel my Netflix account. Heck, an all you can rent monthly fee makes me cancel my Netflix account and give all that constant revenue to Apple. Now, I have both and when I get in the mood for a movie and don't want to wait for the mail, I'll rent it via Apple like I used to via the XBOX360 --because it sounds to me like Apple will have more selection and I hate those damn Microsoft Points).

By the way, I was an early purchaser of Apple TV and have used Handbreak to essentially put my DVD collection on my iTunes. It has been great IMHO and this tweaks it to give it broader appeal.

[gboris]

I won't stop getting DVDs by mail from Netflix until the selection is equaled online. My guess is that the company that equals it online will be Netflix.

[aztec92154]

I agree I used some cheap hack to get my DVD's on my Apple TV. I also got the "EL Gato" to record hi def content like a tivo and then sent it to my Apple TV. If Apple adds the feature (upgrade to buy) you're talking about I'll buy from them.

One more thing...

If its Apples aim to deliver content a subscription based system that could potentially replace my cable provider would be awesome!

[AStrangis]

Sorry, I'll stick with my 360. Besides the Xbox Video Marketplace, it plays nice with my DivX, and even plays back Amazon Unbox videos without any problems. Now if Unbox would just offer HD...

[rtkrum--2008]

I think the AppleTV 2.0 is big.

First, I've been trying to decide between HD-DVD and BluRay, and now I don't have to buy a player for each. Apple just left them behind.

Second, I'm canceling my NetFlix account as soon as I buy an AppleTV. Personally I use NetFlix for movies to watch on the plane while traveling, and now I don't need that anymore.

[gjohnson]

The problem is two fold. Cable VOD has a very limited selection. Amazon unbox, at this time has an extremely limited selection, and it takes hours to download a movie. Unless you have a computer in the same room as the HDTV, then apple TV is not an option without paying for another box to go into the living room.
On top of that, when you download a movie, you do not get all the extra's that you get on a DVD. If I could rent a movie on line and still get all the extras then I would be much more likely to do it. Until then, I'll stick to stopping at Blockbuster and seeing what is available. Although, when all the new programming comes to a grinding halt as the writers strike continues, then these outlets will see a huge jump in business as people get sick of reruns and mindless "reality" shows. having said that, I can also see cable's subscribers disconnecting too. Why pay for service that we are not getting. I could save $60 a month that way. I could watch an awfun lot of DVD's for that price.

[Alpachino321]

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