Wal-Mart Closes Movie Download Service

[Stella]

How to ignore a 150 million iPod userbase and restrict portability? Use windows media format!

And only a very small minority of iPod owners watch movies / TV content on their iPods.

The vast majority of people don't watch movies on their iPod so I very much doubt the DRM being used had much influence of the WalMart DVD download service failing.

I expect it had more to do with one or more of the following:
1. Did people know of the Walmart movie downloads?
2. Movies on Demand is more convenient - you can watch the movie on your TV
3. Movie rental from blockblusters et al is still too familiar and used.
4. Download time
5. Hardware to play back the movie. Not many people have their PC set up by their TV so watching movies on anything other than a TV is going to be awkward
6. Quality - Visual quality, audio quality - 5.1 surround sound etc

 

[SkippyThorson]

When Wal*Mart is affected by anything, you can expect something great is just around the corner willing to take it's place in the area. Most likely by Apple and some clever Cupertino creation.

Wal*Mart exclusives vs. iTunes exclusives, anyone? Enough said.

 

[rockthecasbah]

How to ignore a 150 million iPod userbase and restrict portability? Use windows media format!

And only a very small minority of iPod owners watch movies / TV content on their iPods.

The vast majority of people don't watch movies on their iPod so I very much doubt the DRM being used had much influence of the WalMart DVD download service failing.

Well to be fair, until the iPhone and moreso the Touch, Apple hasn't had a player that was "great" for watching video, the iPod w/ Video (and now Classic and Nano) still have screens which many see as being too small to comfortably watch video. I still see the portable video options of those players as gimmicky and not very functional. Playback hasn't been too great either with battery life but each revision greatly improves on the last. In the eyes of video stores, it makes sense to cater to the Windows video players with larger screens since i guess a person who owns a player with a larger screen is more likely to buy video. Obviously a medium where both are supported is optimal, but I at least see reason stores would choose Windows Media over Quicktime.

 

[paquetja]

I think that the best solution is a combination of rent and own. This way you can purchase a movie outright if you want it. Or you can rent the movie for a cheaper price for a limited viewing time.

But here is what would really a nice addition. To have the option of purchasing movie outright after you have rented it. You would only need to pay the difference between the rental fee and the purchase fee. So if the movie costs $5.99 to rent and $14.99 to own, you would pay the rental fee of $5.99 up front, and then if you decide to purchase the movie you would be charged an additional $9.00 to cover the difference.

I think this is genius. This is like the tried-and-true upsell. If someone has already paid $5 to rent the movie, offering them just another $5-$10 to buy the movie would definitely be more 'psychologically' attractive and entice more people to buy the movie if they liked it.

 

[howiethemacguy]

The iPod wasn't allowed in the game...

By not allowing the iPod to be part of the service, Walmart doomed it from the start.

 

[Call42350]

Also I feel eventually the studios will go it alone and not use third party vendors. Doesnt make sense really does it. Why pay someone to sell your own products?

I agree with this. Unfortunately, I think the consumer loses until they wake up.

Because there are many studios, it's obvious they can't all have their own formats. They reluctantly recognize we need some STANDARD for the consumers (see BDs versus HD-DVDs) so why do they think digital download is special!? The only thing to differentiate the competition in digital download is the user experience, because the content better be perfect. We all know who will prevail if the competition is fair.

Companies like Universal (both music and movies) scare me with regard to allowing competition to play its course. They take the affirmative action route instead of equal opportunity, which I think is fair. They seem to punish Apple, like pulling content from Apple. They don't want to see which download strategy would win between their commercial laden free version and the $2 a show purchase. I hope they wake up so I can return to buying episodes from iTMS. Ripping from DVDs is a pain...

Personally, I hope Apple offers both the rent and purchase models. If I like the rental, I will buy it. Same as the Pay Per View on the cable TV model.

 

[rockosmodurnlif]

i'm really surprised here. kinda glad, actually

Why glad?

1. Needs to be a cheaper Apple TV express thats only 99$ (with out the bells and whisles about to be mentioned) for people not sure what it is, but want to move to into the digital movie world (299$ and 399$ is too much for these people) Apple will make money from rentals and the next time the buy an apple product because they loved this one.

2. Apple needs to partner with Netflix, even if its just to allow use of brand name. The name Netflix is trusted and will instantly show consumers what apple is trying to do. Apple can ditch Netflix 2 years later after everyone has bought an apple tv.

3. Have a DVD drive built into apple tv, with a click and rip system that auto rips any dvd from your collection to the hard drive.

4. Have a Tivo type system built in so that is can rip live programs (tuff considering most have DVR w/ Comcast or w/e now)

5. Apple should BUY the company that makes Slingbox.... and use it to allow iPhone owners to watch TV or any movie from there Apple TV even if they are not home. Sending the signal to Apple only products like my Powerbook G4 when Im at (not starbucks) a strip club lol.

1. is an okay suggestion.

2. is ridiculous. I don't know why Apple would need to partner with Netflix. So you trust Netflix to ship you DVDs through the mail, what does that have to do with consumer electronics?

3. is unnecessary. Don't need it to rip a movie to a digital file. The TV should at least be able to play DVDs though.

4. this would be nice but probably wouldn't need that feature for the reason you state.

5. did we forget about partnering? Why buy Sling? So they can start to exclude other people? Geez, exclusion is part of the reason you can't rent from Amazon's Unbox or view that Netflix on demand feature. If they followed that strategy all along, the iPod wouldn't be what it is.

When Wal*Mart is affected by anything, you can expect something great is just around the corner willing to take it's place in the area. Most likely by Apple and some clever Cupertino creation.

Wal*Mart exclusives vs. iTunes exclusives, anyone? Enough said.

I'm not sure what you're saying, Wal*Mart has exclusives all the time. And so does iTunes. I don't know if one is better than the other.

 

[crees!]

I think that the best solution is a combination of rent and own. This way you can purchase a movie outright if you want it. Or you can rent the movie for a cheaper price for a limited viewing time.

But here is what would really a nice addition. To have the option of purchasing movie outright after you have rented it. You would only need to pay the difference between the rental fee and the purchase fee. So if the movie costs $5.99 to rent and $14.99 to own, you would pay the rental fee of $5.99 up front, and then if you decide to purchase the movie you would be charged an additional $9.00 to cover the difference.

Good idea.. but then again when can you bring your movie stub into a store and get a discount on a DVD purchase?

 

[Call42350]

Good idea.. but then again when can you bring your movie stub into a store and get a discount on a DVD purchase?

Bad analogy because DVDs come out months after the movie finished its box office run.

It's not a bad idea to give discounts on the DVD if you can prove you saw it in the theatre. Arby's used to give 2 for 1 sandwiches with a movie stub!

 

[yoman]

Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU like Mac OS X; en) AppleWebKit/420.1 (KHTML, like Gecko) Version/3.0 Mobile/3B48b Safari/419.3)

I am looking forward to Apple's rental service if all the circulating news stories are correct. Hopefully the price will be right.

 

[NYLawTalkingGuy]

5. Apple should BUY the company that makes Slingbox.... and use it to allow iPhone owners to watch TV or any movie from there Apple TV even if they are not home. Sending the signal to Apple only products like my Powerbook G4 when Im at (not starbucks) a strip club lol.

You are a couple of months too late on that suggestion. EchoStar a/k/a DISH Network announced its acquisition of Sling in September 2007.

Otherwise, good comments.

 

[karmapolice63]

Another Walmart venture that has failed! Keep 'em coming.

 

[JimmyDreams]

Here's my usolicited view:

(and make no mistake, people. The 'powers that be' are watching threads like this to get ideas)

Apple basically dominates the portable music arena with the iPod. It is the '800lb gorilla'. Expensive, but a 'must have' for the 'todays' generation.

Digital media is the coming wave. The music wave is already here, but the video wave is still cresting. iTunes fills a huge void for music and is the standard for people that actually buy music. If Apple can marry the iTunes legacy with digital video, then the 800lb gorilla gains a pound or two.

Alongside the digital video wave is the PORTABLE digital video wave. And by portable I mean wireless, both inside the home and out. If Apple can turn the musical legacy of iTunes into a full-range digital media source, then TV will have a MUCH better chance of catching on. And if Apple can do that AND then simultaneously make your digital media stored at home (and purchased from iTunes) available ANYWHERE you have a portable device, then IMHO, Apple wins.

Think about it. What makes iPods and iPhones so attractive to people? The ease of use...the GUI that any idiot can use right away without a big manual. If Apple can take that ease of use and apply it to fully wireless and portable digital media, then the 800lb gorilla becomes Godzilla.

Can they pull that off without cooperation from Fox, Warner Bros., etc? I don't think so....the big problem will be to satisfy all the execs who have their hand out and want a big slice ($) of the pie. For this to all work, prices must be low enough that you make the $$ on volume. Studio execs don't think this way, so the challenge is there.

Myself? I love the iPhone so much I bought an iMac. I'm waiting on one more upgrade and I'll buy an TV. I still use my 1st gen Nano. And I buy Apple stock every month. I think they're on the right track....the question is is can Apple keep everything 'on track' and still satisfy today's "I want it all NOW" attitude???

 

[Ugg]

This is just more proof that walmart is clueless about all things entertainment oriented. If a product can't be commoditized, they simply don't know how to approach it. With walmart withdrawing, hopefully the studios will realize that the iTMS is a much more viable service. Also, hopefully, Steve will learn that some compromise is inevitable.

There needs to be a universal format with minimal DRM. Amazon's approach is getting closer.

The biggest losers here are the studios.

 

[MacsAttack]

Well to be fair, until the iPhone and moreso the Touch, Apple hasn't had a player that was "great" for watching video

Which is probably been a major driving idea behind the TV - which was pitched as an iPod/iTunes companion device from the start. Even then about the only video I have on my iPhone is Heros, and that was captured and converted from free DTV via EyeTV. Even at that, it was as much an experiment to see if it worked - not a "must have" feature.

 

[Cleverboy]

5 Things for APPLE TV to take over the market.
1. Needs to be a cheaper Apple TV express thats only 99$ (with out the bells and whisles about to be mentioned) for people not sure what it is, but want to move to into the digital movie world (299$ and 399$ is too much for these people) Apple will make money from rentals and the next time the buy an apple product because they loved this one.

2. Apple needs to partner with Netflix, even if its just to allow use of brand name. The name Netflix is trusted and will instantly show consumers what apple is trying to do. Apple can ditch Netflix 2 years later after everyone has bought an apple tv.

3. Have a DVD drive built into apple tv, with a click and rip system that auto rips any dvd from your collection to the hard drive.

4. Have a Tivo type system built in so that is can rip live programs (tuff considering most have DVR w/ Comcast or w/e now)

5. Apple should BUY the company that makes Slingbox.... and use it to allow iPhone owners to watch TV or any movie from there Apple TV even if they are not home. Sending the signal to Apple only products like my Powerbook G4 when Im at (not starbucks) a strip club lol.

1. Currently, Apple's price point is $299. I think $150-$199 would be ideal. $99 is "cheap" and unnecessary, and doesn't begin to appreciate that this is a mini computer without a screen.

2. Apple doesn't need Netflix AT ALL.

3. DVD... perhaps (DVD/HD DVD/Blu-Ray), but it would cost more (ideally a $50+ option that is super-thin, dependently powered, and sits on top). Click-Rip? That'll never happen. (Unfortunately). Copyright gray zone and too costly.

4. Not for the price point. A DVR completely gets away from the point of the device, doesn't it? The device isn't supposed to be "all things". That said, I think a DVR "option" would be nice. They really need to open up the system to remote upgrade/add-ons and unleash the USB port. If this thing could be opened to developers, EyeTV would gladly pop-right in there and add a DVR module to the FrontRow software. Apple needs to stay away from DVR technology in general.

5. Apple doesn't need to buy Slingbox. They could benefit for personal re-broadcasting though. It's a fairly iffy proposition however. Again, though... EyeTV already answers this one:
http://www.tuaw.com/2007/10/03/eyetv-2-5-offers-free-slingbox-style-video-streaming/

All and all... Apple ONLY needs to open up AppleTV for 3rd party developers.
Just like its doing with the iPhone. Just like Apple added YouTube to iPhone AND to Apple TV... they need to let others add new features too. Lower the price, free the USB port (currenty only for authorized service usage), open the platform... and this will just SOAR.

AGAIN, your 5 requests are answered by 3 moves by Apple:

1. LOWER the PRICE
2. FREE the USB
3. OPEN the PLATFORM

AppleTV will truly take off at that point.

~ CB

 

[whatever]

1. Needs to be a cheaper Apple TV express thats only 99$ (with out the bells and whisles about to be mentioned) for people not sure what it is, but want to move to into the digital movie world (299$ and 399$ is too much for these people) Apple will make money from rentals and the next time the buy an apple product because they loved this one.

2. Apple needs to partner with Netflix, even if its just to allow use of brand name. The name Netflix is trusted and will instantly show consumers what apple is trying to do. Apple can ditch Netflix 2 years later after everyone has bought an apple tv.

3. Have a DVD drive built into apple tv, with a click and rip system that auto rips any dvd from your collection to the hard drive.

4. Have a Tivo type system built in so that is can rip live programs (tuff considering most have DVR w/ Comcast or w/e now)

5. Apple should BUY the company that makes Slingbox.... and use it to allow iPhone owners to watch TV or any movie from there Apple TV even if they are not home. Sending the signal to Apple only products like my Powerbook G4 when Im at (not starbucks) a strip club lol.

Interesting, but I think you're wrong on all five points.

1. Apple TV should be competing with the likes of BluRay and HD-DVD, which do less (beyond movie quality) and cost a lot more.

2. Why partner with NetFlix if Apple can do the same thing but cheaper (by not having to partner with them). Apple is a much more recognized brand name than Netflix.

3. Ripping DVD's is illegal. Plain and simple, however....Apple could use the lack of DVD as a part of their green initiative. How much oil is wasted in a CD or a DVD! One of the reasons I'm resisting both BluRay and HD-DVD is that I do not want to be wasteful. There is no reason why I can't receive this content with out the hard media. I know people are going to say, the files are too large, but come on a 750 GB hard disk cost less than $200.00. I can buy a Drobo for under $600.00. Which solves what if....

4. Now, if I was Apple I would buy TiVo, just for the name. I would then add TiVo support to the Apple TV and flip NBC the bird! I really wish Apple would buy TiVo, I used to think my DVR was cool, then I saw a TiVo and I have to say TiVo is so much better!

5. Since Apple already has all of the pieces of the puzzle to do everything that a Slingbox can do already (all they have to do is put the pieces together) and the average person doesn't even know what a Slingbox is, buying them would be a giant waste of money! Again I would buy TiVo!

Of course as an Apple TV owner I pray everyday that Apple will update Quicktime so that will support Dolby Digital! Once it can everything will change for us.

Oh yeah, here's one more idea, which is a paradigm shift for Apple, allow the new rental service and iTunes for that matter to work on xBoxs, Wii's and PlayStation 3's. In other words devices which are already plugged into the home theater. I'm not saying give away the farm, but make it so people/customers can order movies from Apple and play them on other devices.

 

[whatever]

Here's my usolicited view:

(and make no mistake, people. The 'powers that be' are watching threads like this to get ideas)

Apple basically dominates the portable music arena with the iPod. It is the '800lb gorilla'. Expensive, but a 'must have' for the 'todays' generation.

Digital media is the coming wave. The music wave is already here, but the video wave is still cresting. iTunes fills a huge void for music and is the standard for people that actually buy music. If Apple can marry the iTunes legacy with digital video, then the 800lb gorilla gains a pound or two.

Alongside the digital video wave is the PORTABLE digital video wave. And by portable I mean wireless, both inside the home and out. If Apple can turn the musical legacy of iTunes into a full-range digital media source, then TV will have a MUCH better chance of catching on. And if Apple can do that AND then simultaneously make your digital media stored at home (and purchased from iTunes) available ANYWHERE you have a portable device, then IMHO, Apple wins.

Think about it. What makes iPods and iPhones so attractive to people? The ease of use...the GUI that any idiot can use right away without a big manual. If Apple can take that ease of use and apply it to fully wireless and portable digital media, then the 800lb gorilla becomes Godzilla.

Can they pull that off without cooperation from Fox, Warner Bros., etc? I don't think so....the big problem will be to satisfy all the execs who have their hand out and want a big slice ($) of the pie. For this to all work, prices must be low enough that you make the $$ on volume. Studio execs don't think this way, so the challenge is there.

Myself? I love the iPhone so much I bought an iMac. I'm waiting on one more upgrade and I'll buy an TV. I still use my 1st gen Nano. And I buy Apple stock every month. I think they're on the right track....the question is is can Apple keep everything 'on track' and still satisfy today's "I want it all NOW" attitude???

I think Apple already has such a device. It's the Apple TV. It's easier to use than an iPod.

 

[johncarync]

Ha ha!

 

[Random Ping]

From the article:

A message at www.walmart.com/videodownloads said the service was stopped on December 21 and Wal-Mart offered no refunds for the downloaded videos.

Videos purchased on Walmart.com can be played using the Microsoft Windows Media Player or the Wal-Mart Video Download Manager, but cannot be transferred to a computer other than the one used to download them, according to the site.

So another example of DRM screwing consumers. If you bought a movie, when you upgrade your computer you will no longer be able to watch your movie. This sucks big time.

 

[Random Ping]

I think Apple already has such a device. It's the Apple TV. It's easier to use than an iPod.

My biggest beef about TV (which I absolutely love, by the way) is that I cannot use it to download new content such as songs, TV shows, and podcasts. I have to do that at my workstation right now.

I hope Apple adds a content browser and download capability to TV in future updates.

 

[Counter]

Rental is the way for movies. As others have said, it's $15. You can buy the dvd for that or rent a whole bunch. Absolute insanity.

 

[Cleverboy]

From the article:
So another example of DRM screwing consumers. If you bought a movie, when you upgrade your computer you will no longer be able to watch your movie. This sucks big time.

From what I understand, Verizon does the same with music you purchase for your phone. No one seems to talk about that. A bunch of zombies out there for sure.
http://support.vzw.com/faqs/V CAST Music/faq.html#item7

If I get a new phone, can I play the music that I purchased on my old phone from V CAST Music on my new phone?

No. The license for a purchased V CAST Music file is downloaded directly and resides on the phone it was originally loaded onto. Therefore, the song will not play on another phone. However, when you purchase music from the phone you are provided 2 files:

o One file that is downloaded to the phone.
o One file that is available to you on V CAST Music Online Store.
o This file is a version for playing on your PC and serves as a back up to your phone's music database and can be downloaded to your PC and then synchronized to your phone.

To access the online store requires Windows XP® and V CAST Music Manager or Windows Media Player version 10 or higher. Once the songs have been downloaded to your computer, you can use the Music Kit for your phone (requires a separate purchase) to sync music to your phone. Music purchased from V CAST Music is protected and therefore cannot be transferred from phone to phone via a memory card.

Wonderful, huh? If I purchased music on my iPhone (WiFi music store), I'd think it a load of BS if Apple said I couldn't MOVE my music to a NEW iPhone. How truly lame is that?

~ CB

 

[iMikeT]

I guess Wal-Mart couldn't keep up after all. Who's next, Amazon?

 

[lazyrighteye]

After launching their movie download service in February, Wal-Mart has quietly shut down the service after HP decided to discontinue the download service that powered it:Wal-Mart's entry into the movie and TV download business was described as a "game changer" due to partnerships with all the major Hollywood movie studios. Wal-Mart's movies, however, were only offered in Windows Media format, which is not compatible with Apple's iPods.

Pffft. Hilarious.
A show of hands for those that honestly thought Wal-Mart's Windows Media formatted, non-iPod friendly, downoad service was going to be anything resembling a "game changer."

Exactly.

This development merely illustrates just how complex a scenario movie distribution can present. It takes software, hardware, an understanding of the market, of the way people use (or want to use) their media, trends, projections, etc. - things neither Hollywood nor retailers can claim to understand nor posses. And what Apple has invested in the past 2 decades.

It also illustrates how ill-prepared most companies are for such things. Tech savviness aside (which in online distribution is HUGE), a common mistake amongst those eager for a piece of the pie, is thinking they can just partner up and jump in the game. Strength in numbers, right?
In this case, wrong.
There just aren't any shortcuts. You have to do your homework. And that is exactly what Apple has been doing the past 2 decades. And they are now well poised to reap the fruits of their labor(s) - and why this bodes incredibly well for Apple (and APPL): a company that continually demonstrates a solid understanding of and legitimate concern for the user experience. Combine that with their brilliant software/hardware (iTunes/iPod) biosphere and it's game over. Apple wins. Especially if they can offer a rental service... one that also allows the user to purchase after viewing the rental.

We'll see.