Bringing movie magic to Net marketing

(continued from previous page)

complained about the grainy, stuttering video still often found online.

Maven isn't the only company aiming to boost this quality. Apple Computer, whose QuickTime video site has long served as one of the biggest online hubs for movie trailers, recently added a high-definition video section as a way to showcase its new software.

Although few consumers have both high-definition monitors and the patience to download 100 megabyte-plus files, studios are eagerly providing content, Apple said.

"When they look at the quality that's produced by high-definition, they want to be part of that experience," said Frank Casanova, Apple's director of QuickTime marketing.

Ozguc sees these Net promotions as a natural step to more ambitious plans. With his company's ability to trickle high-quality video to a hard drive, it's ultimately a logical move to begin selling the movies themselves, he said.

"The two major studios are using technology to promote films, but I think they're also testing the waters as to what it will take to build a major retail presence down the road," Ozguc said. "All the functionality for billing and content management is there. It gives (the studios) a way to flip the switch from promotion to sales overnight."

That may be a long shot, since studios are still struggling with a business calculus that favors physical DVD sales over Internet distribution. However, several movie studios are toying with the idea of selling digital versions of movies with limited portability on the Net by the end of this year.

Analysts say it is increasingly important to reach consumers on the Net, where people are spending more and more of their time. The high quality of Maven or Apple high-definition video may also help increase the effectiveness of the studios' marketing message, they say.

The downside is that the number of messages and applications competing for people's attention online is rising fast. That cacophony ultimately may make consumers ignore even the highest-quality video as easily as they do today's banner ads.

"Anything that gets to people at their computer, where they're spending a lot more of their time, is important," said Michael McGuire, research director at analyst firm GartnerG2. "But the risk is that consumers will run into icon fatigue."