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Research Study: iTunes Video Failing To Duplicate Music Success

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Forrester Research, Inc has released a new research study that is critical of Apple's iTunes video attempts, and states there is room for competition in the industry.

The iTunes video experiment of selling TV shows for $1.99 and movies for upwards of $9.99 — although a great service to the 4% of online adults who regularly buy video on iTunes — is not a mainstream model. Importantly, it won’t translate into what Apple really wants: increased demand for sophisticated hardware like the iPod touch and Apple TV.

Forrester conducted an online survey of 5,379 US and Canadian individuals aged 18 to 88. Forrester believes that only 4% of the online population buys iTunes videos, in contrast to a total of 19% iTunes store consumer population. Forrester acknowledges that while those 4% are satisfied with their service, the iTunes video store will remain a curiosity rather than a game-changer.

One of the pitfalls mentioned is that there are currently easier ways to get [free] TV shows, including consumer DVR's and services like NBC Direct. Furthermore, Forrester calls out Apple's lack of a catalogue of hit movies. One result of Apple's video misfortunes is that although awareness of the AppleTV is at 45%, the purchase intent is only at 3%.

In an open letter to Apple, Forrester suggests it's time to change their video game plan, including winning NBC back (background), adding a movie rental model (rumored), funneling more web content into iTunes, and supporting an advertising model for TV shows.

Article Link
 

Squonk

macrumors 65816
Mar 15, 2005
1,370
14
I want HD content and movie rentals on the music store. And for :apple:TV I want HD or BR and surround sound support. Thank you.
 
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SPQR

macrumors newbie
Jun 28, 2007
13
0
The choice of Movies on iTunes is pretty poor. Reminds me of years ago when our local store had a couple of shelves full of VHS video's for hire. The owner didn't think there was much of a market - and then Blockbuster arrived near by.
 
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shoffmueller

macrumors newbie
Apr 22, 2005
8
0
it's failing because people rent movies, not buy

and iTunes music is successfull because people buy music, not rent. Opposite consumer preference for each product.
 
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davidtoronto

macrumors newbie
Dec 7, 2007
1
0
Why survey Canadians?

Last time I saw, we Canadians didn't have access to any feature films on iTunes. Maybe if that changed, the statistics would improve.
 
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SthrnCmfrtr

macrumors 6502
Aug 20, 2007
310
0
Las Vegas, NV
iTunes won't present a serious alternative to piracy until they can lower the prices and raise the quality. Unfortunately, that's not really up to Apple.

Every sensible person is aware that, regardless of ethics, a black market will appear if pleasant options do not exist. With the black market firmly in place, especially one as efficient and relatively risk-free as BitTorrent, is this news really surprising?

The content providers and creators are still stuck on a concept of preserving their historic profit margins, even though it's clear to most of us that they'll have to compete with the (free) black market just to survive.
 
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Avatar74

macrumors 65816
Feb 5, 2007
1,389
67
Here we go again. The same moron analysts (mind you, not ALL analysts are morons... I'm an analyst :D) who said the iPod would go "nowhere", and then on scant third party data claimed iTunes sales were collapsing, are tooting their horn yet again about iTunes Video.

Well, it certainly didn't die back when I posted this rebuttal on Slashdot to their earlier misgivings that they are simply repeating ad nauseum.

While the Forrester article has the appearance of news, it's just more hot air to further discredit the internet as a source of newsworthy information.

The strategy Apple is deploying is going to take some time to seep into the public consciousness, something Forrester doesn't grasp. iPods were not a success overnight... they were around for three years before they really took off... and it was that "doomed" iTunes Music Store that, once it found its footing, contributed to the success of the technological convergence model Apple is building upon. The same model of technological convergence that involves various pieces of the puzzle.

The truth is, video sales have been stellar for Apple more than they have for any other online outlet. If anyone can make it work by sheer will, Apple has that ability. Note that I am not claiming what WILL happen in the future... I just think Forrester has a history of being a harbinger of nonsensical "research" and unsubstantiated conclusions.
 
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Luveno

macrumors member
May 12, 2006
36
0
Nova Scotia, Canada
Forrester conducted an online survey of 5,379 US and Canadian individuals aged 18 to 88. Forrester believes that only 4% of the online population buys iTunes videos, in contrast to a total of 19% iTunes store consumer population. Forrester acknowledges that while those 4% are satisfied with their service, the iTunes video store will remain a curiosity rather than a game-changer.

US *and* Canadian individuals? We're still not able to purchase video in canada, beyond pixar short films, and music videos. I ordered an AppleTV at launch, because I thought Apple would finally start selling video in Canada. How wrong I was. Here I am, nearly a year later, and my AppleTV is still under utilized because I can't buy video to play on it. If video were available in Canada, I would easily spend $50-$100 a month on tv/movies.
 
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apollo8fan

macrumors newbie
May 23, 2004
26
0
Video quality and resolution are important to me. This 640 pixel wide crap is for the birds.
 
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ccunning

macrumors member
May 3, 2006
61
3
Simple

If they ever offer HD TV shows at reasonable prices, I will drop my cable subscription.

If they ever offer a "rental" model for movies I will drop Netflix.

If they offer HD movies for purchase, I'll start buying movies again and stop worrying about the high def disc format wars.
 
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Consultant

macrumors G5
Jun 27, 2007
13,310
32
Um, this "research company" almost never have good Apple related report.

They are just trying to grab headlines with negative news.

Last week they said "iTunes needs NBC back", when in reality iTuns is what made NBC's shows popular.
 
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ifjake

macrumors 6502a
Jan 19, 2004
562
1
i'd use iTunes for movie rentals, because there's no way to get the movie onto external media for playback, only just as a backup, and i don't have near the space to begin buying movies and actually holding on to them. and at that point if i'm just holding on to movies while the rental is good, they might as well be DVD quality at least. HD would take too long to download.
 
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Iroganai

macrumors regular
Oct 18, 2003
201
0
I hate Ads in TV shows. I once tried to watch The Office on the new NBC website, and the excessive ads sucked. Why do we have to see ads on PCs/Macs ? I'd gladly pay some money instead of forced to watch ads.
 
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reckless_0001

macrumors 6502
Sep 22, 2003
304
0
Canada
Last time I saw, we Canadians didn't have access to any feature films on iTunes. Maybe if that changed, the statistics would improve.

That's exactly what I thought when I read that. "Why interview Canada? We don't have videos in iTunes. If we did, I'd buy em like cah-razy!". :)
 
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Avatar74

macrumors 65816
Feb 5, 2007
1,389
67
For an interesting comment on the report by Daniel Eran Dilger at RoghlyDrafted Magazine:

http://www.roughlydrafted.com/2007/12/06/forresters-james-mcquivey-announces-the-death-of-itunes-again/

There seems to be some errors and mistakes in the report...

/ Påhl

While I'm not convinced of roughlydrafted's sense of journalistic integrity (they get info wrong too) they do make some very good points about McQuivey which I've made previously on Slashdot... see my above post.
 
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super_kev

macrumors 6502
Jan 12, 2005
352
2
USofA
The :apple:TV needs to have HD and 5.1 surround support, and then I'll pick it up. Most people have setups like that these days, so there's no reason why the :apple:TV shouldn't have it.
 
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merge

macrumors member
Dec 17, 2002
45
0
Quite simply...
People want to own music.
People want to rent movies.

Maybe not everyone... but in general. Those 2 rules apply very well.

Make an :apple: TV with DVR, sell it dirt cheap, and sell a subscription based rental services and apple would do to movies what they did to music.
 
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Peace

Cancelled
Apr 1, 2005
19,546
4,552
Space The Only Frontier
yes, that's what people want - more adverts!

Oh, and $279 to read the article, I think I'll pass.

That's exactly what the industry wants.

Um, this "research company" almost never have good Apple related report.

They are just trying to grab headlines with negative news.

Last week they said "iTunes needs NBC back", when in reality iTuns is what made NBC's shows popular.

iTunes does need NBC back and Jobs better give in.

I hate Ads in TV shows. I once tried to watch The Office on the new NBC website, and the excessive ads sucked. Why do we have to see ads on PCs/Macs ? I'd gladly pay some money instead of forced to watch ads.

Everybody hates ads except the advertising industry and the studios that pay them money.
I've been testing Hulu.com for a while now and it works rather well utilizing flash,java and the H.264 codec. NBC has actually done a good job.
 
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Dicx

Contributor
Jan 10, 2006
138
27
My Apple TV has been gathering dust the past few months, unless something changes it will continue to do that.
 
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emotion

macrumors 68040
Mar 29, 2004
3,186
3
Manchester, UK
From a UK perspective the price ($ almost equals £ ?!) is a massive put off.

Most people here have DVRs now anyway. Apple need to get into that. However, they won't because it is contrary to their business model.

Edit: Remember it's people's own CDs that filled iPods and made that device popular (at least initially). If Apple could do the same for DVDs and had DVR functionality in AppleTV then they'd be selling lots of AppleTVs (and maybe even more Mac Minis as home servers for this content). Off the back of that they then have the foothold to sell stuff on the store.
 
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Stella

macrumors G3
Apr 21, 2003
8,499
5,366
Canada
Its not suprising since Video is only available in two countries - the UK and u.s.

Also, it doesn't help that NBC content has gone...
 
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