"Hollywood is once again abuzz with thoughts of a transformed business
as Wal-Mart, the world’s biggest retailer, has entered the movie
download biz, while Amazon.com is partnering with TiVo in a bid to
expand its presence.
In a nutshell,
as one mogul recently put it, "Nobody is making any money at all on
this yet." Of course, movie downloading isn’t the only business that
got ahead of itself during the first dot-com boom. And studios have
plenty of reason to be optimistic this time around. The Internet is
finally transforming the way all people, but especially teens and
twentysomethings, find and consume media, as evidenced by the meteoric
growth of companies like Google, MySpace and YouTube.
And Apple’s iTunes is now the main growth driver of the music biz along with a host of smaller competitors. But
despite nearly eight years of trying, the online movie biz still hasn’t
overcome many of the problems that have long plagued and that iTunes
overcame in music.
Online prices, for instance, are still on par
and in some cases higher than those for DVDs, even though studios and
e-tailers save the cost of manufacturing and shipping. A key
differentiator for iTunes was its price points, 99¢ for singles and
$9.99 for albums — representing a significant discount vs. CDs."
I found the list of top downloads interesting: 24, Little Miss Sunshine, An Inconvenient Truth, and Studio 60 on the Sunset Strip were the top downloads of this service.
I am not sure if this combination threatens Netflix‘s model. In theory, and additional convergence should be a danger to the internet/snail mail business model.
Be sure to see the #6 of our disclosures regarding these faster than realtime download and play patents . . .
TiVo and Amazon.com Announce New Service
Enabling Amazon Unbox Video Downloads to TiVo
Download the latest movies and TV shows straight to your TiVo
Download business stays elusive
Online movies remain a tough sell
Variety, Posted: Wed., Feb. 7, 2007, 5:36pm PT