Research Study: iTunes Video Failing To Duplicate Music Success

[jaw04005]

There are several problems with video in general.

Most people don't watch TV Shows more than once. Therefore, the only person you're really going to get purchasing TV Shows is someone without cable, wants to live a "digital lifestyle" (discs are an inconvenience, instant gratification, etc) or missed an episode of their favorite show.

If you're a TV lover, you're much better off purchasing season DVD sets at full quality at a lower price. Not to mention, once you get done with the box set—you can sell it, trade it or give it to a friend.

And don't forget—every major network (in the United States) offers free episode streaming.

With regards to movies, Apple's prices are ridiculous. I know of no one that purchases iTunes movies on a general basis (or at all). $12.99 or $9.99 for a sub-par portable version of a film is too expensive. I will be eager to see the sales figures once that gets bumped up to $14.99 because of Fox

Also movies lack surround sound, multiple languages, bonus content or extra features.

The value for your dollar (or euro, etc) is just not there for online video.

 

[xenotaku]

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.

hahahah, how old are you? 12? NBC shows have been and will continue to be popular with or without Apple. Apple needs NBC MUCH more than NBC needs apple.


As for the lack of video interest, I don't agree with the need for advertising, but I do agree, they NEED to create a rental system that works with Apple TV. If and when that happens, I will finally use iTunes for video, and I might actually buy an AppleTV. Netflix is all I need as it is, I still don't understand why people buy movies.

 

[nbs2]

Everybody hates ads except the advertising industry and the studios that pay them money.

Except during the Super Bowl

I don't see what the uproar about a couple of ads is all about. As some have mentioned, video is more a rental system than purchase system. Sure a lot of people buy movies and keep them to watch over and over again, but I would venture that more money gets dropped into the rental system for movies that might get watched once or twice - or just to check it out before committing to the purchase (I wonder if sales would go up or down if "no return" policies weren't in place for movies - the number of people too lazy to bring the movie back or just liking the movie would surely far exceed the number if pirates, right? I suppose not).

I'd imagine that TV shows are even more prone to single watching, for whatever reason. Maybe it's production values, or perceived star power, or whatever. Point is, if end user costs can be lowered/eliminated by installing ads - customer value is increased significantly. Put all the ads at the beginning (or even better - the end), and value is enhanced even further.

 

[mgauss]

Yes! Own music, Rent movies!

Here is why:

While listening to music, one can work, drive, play, etc.

Video monopolizes attention, so really one only watches once!

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 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.

 

[lazyrighteye]

Still Netflixing

I'd drop Netflix in a heartbeat if Apple offered a similar service.
As has been mentioned over & over: people RENT movies - not buy. As a solid movie goer/fan I still only own a handful of DVDs. But I watch probably 5 movies per week via Netflix.

Side note: is any other Mac/Netflix user annoyed at the lack of Mac compatibility with regards to Netflix's instant viewing service? Windows only - BAH!

Back on topic: Apple/Steve must change their/his stance on movie distribution. What they have now is not working. And I say "not working" not based on this report but on the fact that I'm not using it. And if I'm not using it, millions aren't using it.

I want to be able to access the iTS on my TV via my TV and select movies to watch on an unlimited subscription basis. Sure, maintain the option to buy - that's smart. But also let me watch what I want when I want. And while not a big movie purchaser, odds increase I'll buy a movie from iTS if I can view it 1st. Maybe when the movie viewing is complete, an on-screen "option to buy" message pops up that I can initiate or cancel. Maybe I could rate the film afterwards and a few other options. Maybe (?).

But with regards to the TV concept - I really do want to want one. But frankly, just don't see the value, yet. Lots of potential. But right now, a real dud. I'm guessing Apple rushed that product to production in order to sway studios that they (Apple) were serious about movies. If they can get their distribution model fixed, I'm very much interested in a way to get my media onto my TV. But for now, I wait.

C'mon Apple. Let's turn this aspect of your business around in '08.

 

[slu]

There is simply not enough content and the content that is there is priced too high. As everyone else has said, rental for video is the way to go. There is no way I am going to pay $1.99 for a TV show to watch once. And the movie selection stinks, but the same thing applies. Why should I pay $9.99 for a movie I will watch once when I can rent it from Blockbuster for less than $5.00?

I don't need better quality, though I'd take it. I need better selection and either a rental option or cheaper prices. I don't even mind ads if it lowers the prices. Hell, I'd put a lot of video on my iPod for my train ride to work if it was free and ad-supported.

 

[baleensavage]

I've bought a lot of music from iTunes, but I can count the movies and TV shows that I have bought from there on my hands.

For me it's the DRM. I'm not going to pay money for something I can only watch in iTunes especially if the video isnt DVD-quality. Let me burn a DVD from the movie and make it DVD quality, then I will be all over it. And no, I would not rent movies from iTunes. If I rent a movie, I want to watch it on my TV. I'll stick to Netflix thank you.

Not surprisingly, it's not Apple that has killed online video, it's the movie companies. They put all these dumb restrictions thinking it will have anything to do with stopping piracy. It's been proven time and again that DRM doesn't work. All it does is turn customers away.

 

[blindzero]

It's not surprising when you can watch most of the big shows in the same quality online for free, or buy it cheaper on DVD in higher quality, or just TIVO it. Season Passes need to be way cheaper than the DVD box set of a season.

They really have to move to the HD model. I won't pay 10 bucks for a movie if it'll only look great on my IPhone. And Xbox 360's model of charging 6 Bucks for an HD movie rental or 5 Bucks for a HD TV show is not gonna work either.

Price and Quality.

 

[Popeye206]

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 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.

I couldn't agree more! I think most people these days want movies when they want them... not own. I know I don't buy very many DVDs anymore... why? Most just sit there and collect dust. Most of the time when I want to see a movie, I go rent it. Give us an easy way to rent via iTunes and Apple TV and I'll buy one! Oh... but like others, I want HD and 5.1 sound too!

 

[Popeye206]

One other comment on Music...

In contrast to movies... I think too many companies are trying to get in the Music biz and will fail. Why do I need music through Verizon or Tivo/Rapsody? This is insane!!!! I buy the music I want and turn on internet radio or satellite radio for when I just want to listen to whatever comes on. Everyone is trying to jump on the band wagon and it's going to be a blood bath of failures soon I'm sure. I know I don't want to manage 2, 3 or more music accounts!

 

[crees!]

Roughly Drafted

A good read on the topic:

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

 

[ClassicBean]

Including Canadians in this study is highly flawed. We don't have access to the same video content as Americans. While the U.S. gets TV shows and movies, the Canadian store has a few music videos and some Pixar shorts.

The strategy of this survey is tantamount to conducting a political poll for the 2008 U.S. elections, including Canadians in it, and saying that the results reflect the opinions of the entire U.S. population.

We Canadians are outsiders. We may be smarter, funnier and better looking - and therefore it's understandable why you'd want our opinion since we're clearly the best - but we are still outsiders.

 

[AgingGeek]

One word, Steve:

pr0n

You want to make a mint from video? Add this in the parental preferences screens: "Require age verification access to iTunes adult sections".....

 

[nemaslov]

This does not surprise me at all. I have not read all of these posts but in my opinion, music is the on the go entertianment. Video is for home or maybe tarvel but watching on an iPod? Sorry but a laptop yes but NOT on an iPod. Once in awhile it could be great but I can't really see waching Heroes over and over and over on an iPod. I can't imagine even watchin Heroes on a TV

I got my iPod classic 160GB with 35,ooo songs to take along. That's fine by me!

 

[hh83917]

DRM DRM DRM... and price is close to a DVD (higher quality BTW)

 

[Maccus Aurelius]

Wisdom is completely lost on the content-doling dinosaurs anyway, because the DRM extends further than the crappy restrictions on iTunes movies. Lots of newer DVD's, particularly Disney and Sony stuff, are harder to rip, so you may have paid almost $30 for a special edition set and be limited to only your DVD player. The last few movies I've purchased were completely closed off, and it's pretty annoying that I can't take it with me on my iPod. Seriously, rentals should be the only model that utilizes DRM. I'm just gonna have to say that locking down legal purchases so tightly is evil, because I can't do what I wish with my purchase what I see fit.

 

[ryanw]

IF AppleTV was a DVR

IF AppleTV could act as a DVR along with what it currently does, I would totally buy one. And if I happened to have an Apple TV, I would probably buy shows and an occasional movie off iTunes.

 

[Maccus Aurelius]

One word, Steve:

pr0n

You want to make a mint from video? Add this in the parental preferences screens: "Require age verification access to iTunes adult sections".....

LOL XXXTunes! The problem I see with this, other than the whiny parents whose kids found a way to access their private accounts, are the big studios that may not want to associate themselves with "smut peddlers", even if the one producing the smut is a subsidiary of theirs

 

[madmaxmedia]

A penetrating observation. Amazing to me that multi-billion dollar corporations can't seem to grasp what every young family already knows instinctively.

The only thing I will add to that (because in general it is true), is that the movie companies have gradually increased sales of movies by pricing for sale vs. rental (remember the old days when VHS movies cost $100?) That being said, rentals are still more popular and desired for the most part. It would help Apple a lot here to offer both sales and rentals.

With Blockbuster I have to drive to the store and wait in line (if the movie isn't all rented out!) With NetFlix I have to wait 2-3 days for a specific title, which doesn't work for those 'impulse' rentals on Friday or Saturday night. iTunes rentals would potentially erase both those deficits (but requires that you have an ATV if you want to watch a movie with your family in the living room.)

It would also be interesting if they could somehow package ATV with say 30 free rentals or something like that, or even offer some sort of Netflix type plan (10 movies a month for $30 bucks or whatever, etc.)

 

[paquetja]

Exactly!

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 the first thing I thought of when I read that post as well. Asking Canadians about their iTunes video purchasing habits is pretty dumb - we can't buy any video!

That's like asking someone in China if they watch HBO

 

[rockosmodurnlif]

In an open letter to Apple, Forrester suggests its 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

Of all the things I saw in this thread, from actual users, that Forrester recommends, according to the original MacRumors post, to Apple in their open letter only a movie rental model is echoed. It can only lead one to question what information they actually gathered in their research since there seams to be a disconnect between wants and recommendations.

Oh wait. Forrester is telling Apple how to make more money right? Not necessarily satisfying customers. Oh, okay, I got it now. Nevermind.

 

[Claytoniss]

I just want everything! I don't have cable, or dvr, or hd dvd, dts 7.1 If TV gave me all these things. It would be a big fu to cable companies. A true play all media device. Itunes would sooo kick off! They could so improve on Netflix! and save on gas for the mailman!

But there is probably too much politics that are involved, so I am forced to watch TV on their time. I hate that.

 

[sterno74]

Not a huge surprise...

The reality is that iTunes and iPod filled serious gaps in the market. When the iPod first came out, it was really the only hard drive based music player that was a good size and was easy to work with. iTunes provided a way to get instant gratification of having music now, but without the hassle and moral quandry of P2P.

With video, there's not a similar gap to be filled. Most people watch video, at home, on their TV. The need for instant gratification is solved through various on demand video services and, to a lesser extent, video rental stores, and Netflix. I've personally purchased a few videos through iTunes, but they've always been with the intent of having something to watch on my iPod for an airline flight.

Having said all this, what would really get me on board with Apple's offerings is if they provided an easy way for me to download high definition versions of my favorite shows as they were released. So I could buy a season of Lost, then find it sitting on my computer the day after it's aired, ready to be played. Basically replace my Tivo and my higher priced cable service with being able to just pick the shows I want and buy them.

If I could have that, then I could cut back on my cable service to just the basic channels so I can get news, sports, etc. Then I could get all the episodic programming through iTunes as I wanted it. It would probably save me money in the long run and given enough storage space, I could just maintain all these shows forever if I wanted to go back and watch them later.

 

[Timo_Existencia]

I should be in the prime target audience for Apple iTunes Video activity. I've been a long-time mac fanatic, I've owned several ipods. I watch video on my ipods. I own an iPhone, and watch video content on my iPhone. I travel a lot.

I have not purchased an Apple TV, even though I keep hoping it makes sense to do so.

I own an EyeTV unit and a Tivo. I dvr most TV shows. EyeTV allows me to get those shows into my iPod/iPhone for free, and automatically. I just began renting movies on the Amazon video rental service on my Tivo.

Any apologetics for Apple on this issue are misguided, imo. They have not provided very compelling reasons to support their business model relative to video. I've purchased maybe 3 tv shows from iTunes when I missed an important episode.

Apple needs to change course on this thing.

 

[kingtj]

Exactly!!

This pretty well sums it up. If you actually *do* like a particular movie enough to buy it and watch it repeatedly, you'd probably rather buy the physical DVD anyway. (Aren't most people still watching their movies on big-screen TV sets instead of on their computers? If so, a DVD will work in any set-top DVD player out there - many of which sell for as little as $30 or so. Streaming to your TV from iTunes is going to be more like a $200 and up investment for an AppleTV box or something similar.....

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