Research Study: iTunes Video Failing To Duplicate Music Success

[DaBrain]

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

That would be a Big 10-4! If they had rentals at NetFlix prices or better, I would buy an Apple TV or 2 tomorrow and rent iTune movies! Until then no money from me! I been waiting since the Apple TV came out for this option! Let's go Apple! You can do it!

Need to amend my comment some. Because, I was thinking that even Netflix has a crappy on line live streaming selection and it's not because they don't want to offer the latest DVD's for streaming. They have come right out and stated that it's the movie companies, producers etc that do not allow them to make all their DVD content available. So having said and thought about it, ID say we are in for a longggggggg wait, thanks to all the providers of movies. I fear it will be a very long time unless a miracle happens and they actually start to think out side the box! But IM not holding my breath on that happening anytime soon!

 

[B. Hunter]

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

Don't forget TV shows.
I would love to see The Beachcombers and North of 60 available on iTunes.
The Beachcombers is the most popular series in Canadian TV history.
I thought it would have been out by now on DVD. Some real idiots are missing sales with that.

BTW I am American.
You have good television shows up there.

 

[hexonxonx]

I WANT to buy movies on iTunes but everytime I look, there are the same old movies there. I'm not interested in anything that is offered at this time. TV shows I do like.

 

[Porco]

Quite simply...
People want to own music.
People want to rent movies.

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

This keeps getting repeated, and maybe there is some truth in it for some people... but I just don't think this is why video downloads are not taking off like music did. I think it was more true when were in the days of VHS, but DVD has made buying movies (and TV shows) to keep a massive business.

I think price, DRM, resolution and bandwidth are the problems. If Apple raise the resolution, they have less customers who will realistically consider downloading massive files, though capturing some more buyers because of the quality. If they lower the resolution, the quality is not worth it to anyone, despite being easy to download. All that is bad enough, but then you can't burn the files to disc like you can with music purchases, and the proposition becomes a non-starter. Then when you see you can buy a DVD for often the same or less as the lower quality, DRM crippled video file Apple are selling, everything but the immediacy of the download looks like a bad idea (whether you're renting OR buying for that matter).

As much Apple probably hates the idea and would never go for it, a price cut for an immediate download + physical DVD in the post would probably make this thing work better.

 

[matt311rocks]

I occasionally buy music from itunes. I don't subscribe to any HD tv so you give me HD and rental options.... I would defiantly get a few movies off there and maybe even buy a tv.

 

[wmikulic]

appletv dying

appletv simply isn't compelling and so it will continue to fail. If Apple wanted to duplicate the success if iPod, which allows you to put your CD into your Mac and move the music to the iPod, you would have to be able to do the same with video: insert a DVD into your Mac and stream/move the video to appletv or to the iPod touch.

appletv would be even better if you could just put the DVD into the appletv and it automatically puts a copy onto its harddrive, and optionally allows you to move a copy to your video iPod.

the Digital Millenium Copyright Act is the worst thing to ever happen to the American public as far as fair-use. Basically fair use (your ability to personally use content you legally rented or bought) is dead.

 

[rjvamp]

What methodology did they use for the stats?

I think the sample was way to big on the age group. Those upwards of 88 would, based on technology sales and marketing, be a far less likely group to buy into this type of technology. I wouldn't put much faith in the report.

 

[sonicboom]

It's the price stupid

$1.99 is too much for an episode of a TV show. $.99 would change everything (make it up in volume).

The iTunes movies are way over-priced, since they are essentially watch once and toss (or accidentally delete). DVDs are a better value. Apple needs to move to a rental service, or sell the movie file for < $5.

Better quality would be nice but this is really about price.

Fix that, and I'll buy an AppleTV.

 

[Cleverboy]

This is hilarious. Roughly Drafted's criticism of McQuivey was spot on.

Two items in need of improvement. iTunes Video / Apple TV.

What does iTunes video need to be MORE successful?

I think they're doing fine. Keep negotiating, add more studios. If you really must... raise prices a bit (add flexible prices). Movie rentals? I'd buy them. Kind of a bum deal, but the suggested model looks very appealing. Release it already! Add cheap content! Check into copyright-expired content. Sell it for 99 cents a pop.

What does Apple Tv need to be MORE successful?

Here we go, ready?

1.) Price: $150-$199
2.) Features: Integrated EyeTV DVR support (just add a USB dongle)
3.) Features: Built-in H.264 encoding acceleration
4.) Features: Full overlay/control integration with television
5.) Features: Standard non-digital TV support
6 Features: USB storage support & network drive

#5. Has cost Apple Tv the MOST business by far. It's okay to support the new standards, but don't cut people off that don't happen to have a modern digital television. Sure, they'll be screwed soon enough, but let them figure that out. In the meantime, collect your profits.

Catch #3, though? The hidden feature that the industry is killing Apple by heavily litigating? Letting people RIP their DVDs and play them from their hard drive to any Apple TV in the house. Apple would be first in line to launch a RIP & PLAY campaign for DVDs. People would GLADLY throw away the clutter and stream videos from their computers. If Apple TV was an easy to use, low cost Kaleidascape-type solution... And a DVR... for $150-$199... built-in wireless networking... DONE! NOTHING else would matter much. People would wet themselves for an Apple TV set up.

~ CB

 

[Digitalclips]

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.

100% agreement here.

 

[Virgil-TB2]

The 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 TV shouldn't have it.

Just to point out the obvious ...

AppleTV already has HD and 5.1 sound.

It's iTunes content that doesn't.

 

[Yvan256]

Forrester conducted an online survey fielded in June and July 2007 of 5,379 US and Canadian individuals ages 18 to 88.

I can already see how it happened.

One day, in a Forrester meeting room...
- "How can we make it look like Apple is failing with iTunes in the movies and TV shows area?"
- "Oh I know, let's include people in the survey who are too old, don't use computers and don't even have access to the iTunes content."
- "Make these people 99% of the survey, too! Brilliant!"

 

[Virgil-TB2]

The cost is insane, and the selection is too limited....

I totally agree with this.

I am in a similar situation because I live in Canada, so the things that AppleTV and iTunes offers are kind of "hypothetical" and perhaps more easily analysed at a sort of arms length way than is possible in the US.

It's *all* about cost, and Apple does not control their own costs when it comes to media so they are limited in what they can do.

Cost is like the giant elephant in the room that no one is really talking about.

Apple is purportedly switching to a rental model which is great, but how much will these rentals be? Currently, I buy all my media on physical DVD's (thousands of them) and I rarely pay more than ten bucks for each with maybe ten or twelve first-run movies per year thrown in there at something approaching full-price.

If I wanted to be even slightly dishonest (I don't), I could rent the same movies, rip the files and return the DVD's as I know many people do. That would lower my cost for movies to about 7 bucks a movie on average, maybe even 5.

Even if Roughly Drafted is correct and Apple is about to open the most compelling online video store that ever was, ... the movies would still have to be something like 2 or three bucks to own/rent before it gives me any advantage at all price-wise. And these movies will be of lower quality, and I won't get the actual movie at all in some cases, just a download that dissapears the moment I rent the next one.

The biggest change in the move from physical to digital media that no one ever really wants to bring up is that the cost has to be far less. The media companies just don't get this at all. They have already apparently got Apple to agree to spend 15 bucks a movie wholesale! How can any one make a profitable download or digital rental service out of something with up front costs the same as retail physical media?

 

[Cleverboy]

The biggest change in the move from physical to digital media that no one ever really wants to bring up is that the cost has to be far less. The media companies just don't get this at all. They have already apparently got Apple to agree to spend 15 bucks a movie wholesale! How can any one make a profitable download or digital rental service out of something with up front costs the same as retail physical media?

Oh, that's not true. People bring this up ALL THE TIME. Just not the people who're offering it. Oh, and Jobs... Jobs tries to bring it up with the movie studios but they just frown at him. Like this... Then they look around and say, "Steve Jobs doesn't want anyone else to make any money!" And Jobs holds his head in his hands.

~ CB

 

[pgwalsh]

maybe now they'll start offering HD video, so i can start buying

Exactly

I want HD content and movie rentals on the music store. And for TV I want HD or BR and surround sound support. Thank you.

I'd like rentals as well, but I'd like to use something other than my computer or the AppleTV.

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

Um.. If the video's were downloading in HD for $3.99, I'd do it without hesitation. Especially if they had a lot of titles. No more trips to the video store or mailing DVD's back to netflicks.

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.

exactly

Video quality and resolution are important to me. This 640 pixel wide crap is for the birds.

Couldn't agree with you more. Get HD and Titles.

I also think they should cut a deal with Sony, Microsoft and a few others so you can download movies to your PlayStation 3, Xbox 360 or DVR. I certainly don't want to deal with my computer or purchase an AppleTV to rent movies online.

 

[Steven Ballmer]

Can't be done!

The sharks in video are a lot bigger than the music weenies!
Jobs is too domineering, he just can't beg like he needs to!

 

[Counter]

Being able to cherry pick songs out of albums doesn't come into play with video. I think this is a HUGE selling point of iTunes for music. Maybe convenience doesn't come into play as much with video either. I dunno, I'll never buy either because I like factory pressed stuff: the ultimate backup.

And yeah, the quality difference between CD to MP3 via iTunes and DVD to Video via iTunes is HUGE.

iTunes video is going nowhere fast. Especially with HD on the up.

 

[TurboSC]

lets hope Apple has plans on reviving the AppleTV for MacWorld. That'd be the perfect place and the perfect time to do so it seems.

 

[John Musbach]

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.



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

I agree, why would I pay to watch tv shows when I can just as easily record them on my dvr and watch them for free when I want to? People with computer tv tuners can even record them to portable video file formats and upload shows to their Apple products that way so it's no surprise that this idea isn't doing so well. I doubt even renting content will do too well as that niche is already filled by on demand content which is now provided by most cable providers for free. I hate to say this but I think even Apple can't beat what is already being offered in this area and they should instead refocus their energy on areas they are currently doing very well in...

 

[slu]

Catch #3, though? The hidden feature that the industry is killing Apple by heavily litigating? Letting people RIP their DVDs and play them from their hard drive to any Apple TV in the house. Apple would be first in line to launch a RIP & PLAY campaign for DVDs. People would GLADLY throw away the clutter and stream videos from their computers. If Apple TV was an easy to use, low cost Kaleidascape-type solution... And a DVR... for $150-$199... built-in wireless networking... DONE! NOTHING else would matter much. People would wet themselves for an Apple TV set up.

~ CB

The only problem is that, in the US, according to the DCMA, breaking the DRM on a DVD is illegal, even if you consider it Fair Use.