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Reading coverage of the introduction of the latest video iPod, one might think that the wheel had just been invented. Portable video devices have been around for a couple of years, and many--like the fantastic Samsung devices--far exceed the video iPod both in form and functionality. But you rarely hear a word about them in the mainstream media.
In and of itself, the video iPod is of limited significance. The real story is the Disney-ABC content deal that Apple Computer CEO Steve Jobs struck.
Disney only went along because it's part of its effort to win back Pixar. Competing Hollywood studios have been in the chase, with Fox going so far as to offer up a juicy deal similar to one it gave George Lucas.
What's more significant is the blowback that Disney is getting for licensing its TV shows to Apple. Forget about the stink that the affiliates are making. The network TV business is toast. Soon, network affiliate stations will be as cheap as AM radio stations. Meanwhile there are advertisers who are going crazy. If they buy a commercial on "Lost," the advertisers say it should be seen on the download available at iTunes the next day.
The real problem is the Hollywood guilds, which are the film business' equivalent of music publishers. Except that the guilds have more time on their hands to sit around and think of ways to make the studios miserable.
They want a bite of the Apple deal. A big bite.
For example, the guilds only grant the studios a free pass for the use of 1,000 feet of film. That translates into approximately two minutes and 15 seconds, the length of a trailer. What's amusing is that they still think in terms of "feet." (How many bytes are in a foot?)
In recent meetings with the major studios, my interlocutors clearly stated that they were not very worried about rushing to find an online solution for their feature films. They feel that they have a good year or so to deal with the issue because online film trading isn't yet that big a problem. There's still not quite enough bandwidth, and the files are enormous. And BitTorrent really isn't that a huge concern because it still takes about a week to download a feature film.
The best entry point for the studios into the portable/online video world is through television programming, the vast majority of which is produced by the major film studios. Though it still takes much longer than a music file, episodic television represents a quicker download. My feeling is that current episodes of "Curb Your Enthusiasm," "Rome" or "Lost" have more immediacy in the mind of the viewer.
Let's face it: If you miss an installment you usually have to wait for months to see the repeat--unless, of course, you have Tivo. And don't forget that you still have the commercials and Tivo is not exactly the most portable-friendly format.
My expectation is that you'll see many Hollywood players gravitate toward the Apple model but at a slower adoption rate than we saw with the music business. They just don't feel the pressure yet. As far as feature films go, that's further out still. No doubt Hollywood is going to have to revamp its business model, but it's not in any mood to rush things.
Biography
Wayne Rosso is the founder of Mashboxx.
See more CNET content tagged:
Apple video iPod, studio, Disney Corp., Hollywood, film
I don't know about the U.S, but with the average bropadband connection you can now get in the UK you're looking at a few hours, or a day at most, for a popular movie download in full high-resolution glory.
The reason why television programming is so well suited to the portable medium isn't because it's easier to download: it's because it'e easier to pick-up-and-drop, to watch in few minutes' bursts while waiting for a cab or sitting on the train.
In any case, the one-million plus videos sold through iTunes in its first 20 days of offering them is a sign that the adoption rate isn't as slow as you may think. In fact, recent announcements by AOL, NBC and Nickelodeon offering their own content for download would indicate the contrary: now that Apple and Disney have opened the floodgates everyone's jumping on the bandwagon, fearful of being left behind.
players on the market. But NONE, repeat: NONE of them have
anything close to the coolness factor of the iPod (not to mention
ease of use).
You want to make a teen-age girl cry cry this Christmas? Give
her any portable player that ISN'T an iPod.
Want to sell MILLIONS of tv shows at a couple of bucks apiece?
Get them on the iTunes Music Store. It's quite simple. The
reduced file size & crystal clear video (on the iPod, at least),
makes it hard to resist downloading these shows on impulse.
Ask any grocer about impulse buying -- put cheap, small itmes
at the checkout counter -- make it EASY.
There's nothing like the lure of $$$$$ to make the networks
stand up and take notice. Getting the shows on iTunes is a no
brainer -- just between air date and DVD release.
Putting Gilligan's Island on AOL is not going to make the bucks
that throwing shows on iTunes will, and this much will be
obvious by January to anyone.
-=-Mister Ron-=-
the commercials.
In addition, it seems to me the story was slanted pro-studio,
and anti-writer. Is not part of the video hold-up, NOT the
guilds, but rather the desire of the studio execs who think the
same business model applied to DVDs, and VHS should be
applied to digital format?!
This story has more spin on it than a eletro-magnetic
accelorator! The studios want to include the same trumped
up costs for distribution, manufacturing, promotions, packaging
etcs. on the digital media. Hell, they've even quoted that
everything is fine! After the "costs" are added into it, the
studios come up with a magical number that leaves the
remaining percentage of a "possible" net. If I was the guilds,
representing the authors, and performers of these materials, I'd
be stressed over the financial manipulation as well.
For those of you who are not getting this point. Digital media
has a zero, I repeat ZERO storage, reproduction, and delivery
costs. Consumers are clamoring for content WITHOUT the
damn commercials, and other crap they have to swallow.
So what is the authors beef about?! I think he's trying to spin a
new topic, after Apple had over 1 million videos, in 20 days.
Those numbers must have woken some suits up, and this article
is merely THE BEGIN OF THE SPIN.
Digital media has a zero, I repeat ZERO storage, reproduction, and delivery costs.
But that's rather a naive view. First, there is the cost of disk drives, backups, maintenance.
Then there are web site costs, bandwidth costs, staffing costs, costs for electricity, and other infrastructure.
Few if any of the companies are currently providing massive download sites, with rollover servers, etc. There's plenty of costs.
Certainly sales of advertising will cover some amount of the costs. But it remains to be seen if enough sales of advertising will be generated to cover all the costs. And even if advertising sales income covers the costs - the costs are still there.
I do agree, however, that the costs of digital distribution are, overall, less than that of physical media, and should be more cost efficient after the initial infrastructure is in place.
And I agree with Mr. Thomas that the companies do not appear to be considering the differemce.
So, is this merely a media overhype? Doesn't appear to be the case to me. Instead, it appears that finally some company making a video player has gotten the average customer interested in the idea of portable videos. Are there technically better solutions than iPod? Certainly there are grounds for arguing that perspective. But Apple has the mind share and the built in customer base to make a serious run for the field.
Will customers be satisfied spending $2 a file for something they already pay for in another format (aka satellite or cable)? Some portion of customers will. But IMO there seems to be less market for selling current television series than selling music videos. When pricing becomes more reasonable, and the selection becomes wider or at least exclusive, then changes in the market place are more likely to appear.
The Media giants don't understand what is happening here. Apple with Video iPods, Intel Based Macs, plus "Front Row" spells the end of TV, Movie distribution as we know it. Just like that little thing called "www", that came out of a Steve Jobs machine 15 years ago.
At this point it's just best to sit back and watch :)
perspective. I would be trashing the iPod too if I had a P2P
agreement with Sony that I was trying to get off the ground.
Gawd.
This is what passes for journalism these days?! Get someone
who is clearly unfair in his assessment but call it 'perspective'
anyway?
I dare anyone to read the first 2 paragraphs of his press release
over his Sony BMG deal. YAWN.
Do wait for the real Video Ipod -- the one with the wide screen
coming up and for films - then you'll see a video iPod revolution.
Mashwhat?
How premature in speculation can you get? It took years for the
original iPod to catch on. YEARS.
coming up and for films - then you'll see a video iPod revolution.Mashwhat?"
Sony has a 7" and 12" portable tv system that works via a wireless network called LocationFreeŽ TV that because of the screen sizes i think is much more atractive(flexability wise). Plus you can record and watch whatever you want. I don't understand why people want to watch video on these tiny eye-straining screens anyway.
Wrong, superfunk. The first iPod, released October 23, 2001, overtook the marketplace nearly on impact, overturning every other competition mp3 player around. Barely a year and a half later, with the release of the 3G iPod, Apple skyrocketed to the megafame we're used to now. But YEARS to catch on? Hardly.
We live in a different world. The tech industry is so breakneck speed that these kind of predictions are hardly EVER premature. Wrong, perhaps, but premature? Read "Business at the Speed of Thought" by Bill Gates and get a paradigm shift. You sound old fashioned and strangely bitter.
And it's predicTable, anyway.
always with the same line:
"Reading coverage of the introduction of the latest video iPod,
one might think that the wheel had just been invented. Portable
video devices have been around for a couple of years, and
many--like the fantastic Samsung devices--far exceed the video
iPod both in form and functionality. But you rarely hear a word
about them in the mainstream media."
Here is a catch-all paragraph to fit any Apple product hype
complaint insert your device:
Reading coverage of the introduction of the new (Powerbook,
iMac G5, Powermac G5, iPod, Mac Mini, Airport) one might think
that the wheel had just been invented. (Laptops, all-in-one
computers, professional grade workstations, MP3 players, low-
cost desktop computers, wireless routers) have been around for
a (long time, forever, couple of years), and many like (fill in
appropriate device) far exceed the Apple (Powerbook, iMac G5,
Powermac G5, iPod, Mac Mini, Airport) in both form and
functionality. But you rarely hear a word about them in the
mainstream media.
I pity the poor monopolists . . . .
JoeL
As a consumer, at this point I want nothing to do with Sony products, and by extension their industry shills. If I want music that is produced by the Sony label, I will not buy their CD's or their "P2P" spyware. I have another place I can buy it: iTunes.
If I want every episode, I'll wait for the DVD. It will be cheaper.
But if I need one episode, like last night when the local affiliate
turned into the Weather Channel because a tornado was spotted
two states away, I can get it.
And that's not going to happen all that often, so why pay the
monthly Tivo subscription fee.
The truly wonderful thing is that I now have another choice, so
that I can enjoy TV without it running me.
gotta love Apple's "Think Different" Campaign. You editors,
writers, and critics need to get a clue, of course, if you had ever
been in the military and deployed anywhere you would stop
criticizing Apple and praise them for the good they do the good
people in Service of our Country.
Let me explain. Over 200,000 troops deployed worldwide, to
mention U.S. Civilians and do you think they have access to
Satellite TV everywhere, nope. I was in Iraq and DVD players
don't last very long in sandstorms, dust storms. Hello! WE
LIVED IN TENTS! I am now in Afghanistan and I've gone through
2 Xboxs already. This environment is murder on the DVD drives.
You know what has not been replaced. My original iPod made it
through Iraq and here in Afghanistan. The video iPod is the
Soldier's/Civilian's solutions to damaged DVD players and
scratched up discs. Can you imagine what family will do for
another family member deployed in harms way? Let's download
legal content off of ITMS and convert existing movies onto the
iPod Video and send to GI Joe in the desert. Now Private Joe
Gadget can view and listen to content so he/she can forget
where they are for just a little moment. They can hook it up to a
TV and watch them with fellow soldiers/civilians. With internet
access they can download TV shows off of iTunes days after it
airs in the U.S. Then define REVOLUTION for me.
Okay Apple Computer is going to make a little profit but they do
something other companys don't with there profits.
INNOVATION! As long as produce really awesome stuff, we will
buy it. Maybe the answer to his REVOLUTION is INNOVATION. If
he had it he would know.
gotta love Apple's "Think Different" Campaign. You editors,
writers, and critics need to get a clue, of course, if you had ever
been in the military and deployed anywhere you would stop
criticizing Apple and praise them for the good they do the good
people in Service of our Country.
Let me explain. Over 200,000 troops deployed worldwide, to
mention U.S. Civilians and do you think they have access to
Satellite TV everywhere, nope. I was in Iraq and DVD players
don't last very long in sandstorms, dust storms. Hello! WE
LIVED IN TENTS! I am now in Afghanistan and I've gone through
2 Xboxs already. This environment is murder on the DVD drives.
You know what has not been replaced. My original iPod made it
through Iraq and here in Afghanistan. The video iPod is the
Soldier's/Civilian's solutions to damaged DVD players and
scratched up discs. Can you imagine what family will do for
another family member deployed in harms way? Let's download
legal content off of ITMS and convert existing movies onto the
iPod Video and send to GI Joe in the desert. Now Private Joe
Gadget can view and listen to content so he/she can forget
where they are for just a little moment. They can hook it up to a
TV and watch them with fellow soldiers/civilians. With internet
access they can download TV shows off of iTunes days after it
airs in the U.S. Then define REVOLUTION for me.
Okay Apple Computer is going to make a little profit but they do
something other companys don't with there profits.
INNOVATION! As long as produce really awesome stuff, we will
buy it. Maybe the answer to his REVOLUTION is INNOVATION. If
he had it he would know.
- OPEN MOUTH INSERT FOOT
- by Dream Weaver November 18, 2005 6:34 PM PST
- Why does CNET let this guy comment on anything. He's managed to name a company nothing else...
- Like this Reply to this comment
-
(18 Comments)NBC Teams With P2P Distributor
by Gavin O'Malley, Friday, Nov 18, 2005 6:00 AM EST
NBC UNIVERSAL ON THURSDAY ANNOUNCED plans to distribute full-length movies through the peer-to-peer file-sharing service Peer Impact. Come springtime, consumers will be offered 24-hour access to new and archived films for an as yet undecided price.
While movie download services already exist--like Cinemanow and Movielink--the deal is a first for both Universal and Peer Impact, which is owned by Wurld Media.