Warner, Paramount, Disney, Fox, Lions Gate to Join iTunes Rentals

[Elbon]

I don't see any reason to rejoice over Yet Another Distributor vending movies with no better terms, no better selection, no better price.

I do. The current version of AppleTV does almost everything I want: it allows me to listen to my iTunes music library, view photos, and watch home movies via my home entertainment system. However, it doesn't let me (easily) watch production video content that I don't care to purchase but would still like to see - I still need a DVD player for that. An updated AppleTV that supports movie rentals would allow me to get rid of my DVD player entirely (in the same way that many of us eliminated the CD player from the entertainment system once MP3 players became prevalent).

 

[jettredmont]

So couldn't you just use a screen capturing app and record the movie, then put it on a DVD (Or possibly Blu-Ray if they introduce the drive)? I am okay with this... $3.99 DVDs!!!

Please. Just skip the purchase altogether, grow some balls, and infringe on copyright using BitTorrent like the other cool kids. You'll get better quality, likely faster, and certainly cheaper.

For the rest of us who care about laws and such, this is a crappy rental deal.

 

[danny_w]

...DirectTV Pay Per View - $3.99 regular/$4.99 for HD, and you don't get to keep it, but watch it the next time it being shown, and sometimes for as much as you want up to 24 hours...
So....think again, the prices mentioned here for Apple are NOT OUT OF LINE at all with existing market prices. Sure, they suck compared to NetFlix but, thats a different kind of service.

At least with a DirecTv DVR you can record the PPV for unlimited viewing later (at least non-HD, I don't have HD so I don't know if it is different). And if you have a VCR/DVD recorder you can make a backup copy.

 

[djejrejk]

24 hours is ridiculous and I can't think people would be stupid enough to pay 4 bucks for a movie rental that is probably gonna take 3 hours alone to download and only last 1 day! It takes less time and less money to go to the Blockbuster in my town and I can keep the movie for a few days and watch it on a big TV.

Im not sure that the download will take 3 hours.. an album on itunes takes 1-2 minutes on my modest connection vs. at least 30 mins over bit torrent. Even if the download takes an hour, not only are you saving the chore of going to the rental store and picking out a movie (usually at least 30-45 mins for me), you also save the hassle of getting it back on time and worrying about late fees.

The key for me is going to be quality- I would gladly play for 720p... less than 720p.. maybe not.

 

[celavato]

I mentioned it to several of my clients and they all think the $4 price tag is fantastic. Several of them have commented that it may be enough to have them discontinue their netflix service.

It really depends on the Netflix user. I watch 4 movies/month tops and will gladly pay a premium for a download ($16 versus $9 for Netflix) -- if Apple offers 720p, bundles extras like featurettes and commentary tracks, and starts the one day rental period from the time you play the movie. This way, you could download a movie earlier in the week so it's ready for the weekend.

 

[BobVB]

My fear is that this will be successful and we will have another DivX that actually succeeds. They are selling you an inferior product, both audio and video, for too high a price (industry standard or not) for an inconvenient time period (24 hours is too short to insure the customer has time to recoup their investment - 36 to 48 hours as a minimum).

If this is successful it will just cement the idea that the viewing public will take anything they decide to give us. Let it crash and burn and see if we can get them to give us things that cost them NOTHING but make the product better for us the consumers.

 

[Elbon]

My fear is that this will be successful and we will have another DivX that actually succeeds.

This isn't really an apt analogy. DivX competed with DVD in the same way that VHS competed with Betamax and HD-DVD is currently competing with Blu-Ray. These were "format wars" where one is meant to succeed at the expense of the other. iTunes movie rentals are not an either/or situation like this - if you don't like the quality, you have plenty of other (higher-quality) options: DVD, VOD, or HD-DVD/Blu-Ray.

 

[BobVB]

This isn't really an apt analogy.

Depends on what aspect you were referring to - I was just using it as accepting a low standard product when they could make a higher one, in the case by changing things that really cost them nothing in the grand scheme of things.

Less than DVD quality for DVD prices? Less than the quality of other delivery methods for the same cost and inconvenient time periods.

But as you pointed out since there are better quality and even cheaper alternatives maybe it would be best to give this venture into the market place a resounding 'NO' as presented and let them know we KNOW they can do better.

 

[DakotaGuy]

These days everything is about HD broadcasting and video or even up-converted SD DVD. This is going to fall flat on it's face if it does not offer at least 720p/1080i video quality. If you could hook it up to a tube SDTV then it might look fine, but on today's HDTV's it is not going to look good.

If Apple wants to be successful and take a chunk out of the disc renting market they need to offer a product that is at least as good as up-converted SD DVD or better with regards to image and sound quality. The other thing they need to look at is monthly rental subscriptions. If they can offer 720p content with 5.1 sound and a monthly rental package it could be wildly successful and might even become the future of movie rentals. They also should offer the same quality video for purchase and download if there is a movie that a person really wants to keep. I thought the whole idea behind Quicktime H246 was to allow for HD quality at smaller file sizes so I don't see why this should be an issue. Doesn't MS offer some HD downloads on their xBox 360? If they can do it so can Apple.

 

[derrickearl]

Can you say Red Box?

 

[SthrnCmfrtr]

This isn't really an apt analogy. DivX competed with DVD in the same way that VHS competed with Betamax and HD-DVD is currently competing with Blu-Ray.

It's not apt at all For the sake of young'uns who might be confused, Elbon and the poster he quoted are referring to the DIVX pay-per-view DVD system, not the DivX codec.

 

[chicagostars]

wow

The attitudes here are incredible. "It doesn't meet my needs so it is doomed to fail." How arrogant people must be to believe everyone else's habits must match their own.

- many people can watch a movie in less than 24 hours.
- many people find going to the video store inconvenient, no matter how close it is
- many people don't like the waiting required by Netflix, and that is if they want to rent two movies in a month
- many people don't have HD DVDs so don't require HD movies

This service is not for everyone, granted. But to say it is doomed is a bit premature.

A sober, sensible post. Thank you.

 

[Project]

Once again, whinge whinge whinge.

- Apple introduce films on iTunes. "too expensive!" "I only want to watch it once, give me rental!" "viewing films is different to listening to music!" the Mac Rumors faithful cried.

Now Apple is bringing rentals and its "too expensive!" "I can't watch a 90 minute film in 24 hours!"

- A long time passes, and Apple do not have many companies on board. "Steve is playing hardball" "Apple doesnt know how to do business" "Amazon has got way more content than iTunes, it sucks".

Now Apple is bringing new companies on board after presumably catering to their pricing demands and its "its too expensive!" "I can get cheaper on bit torrent/the local avon lady"


1. I have a reasonably fast broadband connection and am currently downloading a 720p movie from Xbox Live (Harry Potter if you must know), as a test to see how long it takes. Its been 6 hours so far and on 72% for what is a 7GB file. While i'd love a choice between 720p and SD on iTunes, I wouldn'tbe surprised if Apple kept it non-HD. There is no instant gratification for the vast majority of users at the moment.

2. People moaning about the price, well, its the standard for this type of thing. Look at Amazon for example. you can't compare the traditional Netflix model as its a completely different business model. For most people, the number of movies you can rent and how long you rent it on Netflix is not an issue as you are paying a subscription. They make their money on people who just watch a couple of movies a month, yet still pay their account in full. Apple are not in a position to do that for downloads, should there not be a subscription option. But sure, a lot of people will find Netflix to have a far better solution for them. But stop acting like they are the only type of customer. Many of us do not watch enough films to justify a subscription.

3. To the dude who said the 24 hours sucks and he would rather go the cinema and enjoy the big screen - good luck trying to watch 24 hours worth of screenings with your single ticket. And good luck getting them to play older titles.

 

[whatever]

I agree... I think this is stupid pricing... especially considering that Verizon FiOS offer video on demand services, as does comcast high speed internet. The rates are much better and the pipes are bigger so you can start watching right away.

Using iTunes only makes sense for purchasing.

Oh... and really only for HD quality.

Comcast is $4.99 for one viewing and they don't have many movies on the same day the DVD is released.

And as far as HD Content goes....

 

[pomus]

At least with a DirecTv DVR you can record the PPV for unlimited viewing later (at least non-HD, I don't have HD so I don't know if it is different). And if you have a VCR/DVD recorder you can make a backup copy.

Woah, some of you guys just don't get it. 1) I don't have satellite or cable because I refuse to pay many many moneys for crap that I don't watch. 2) Itunes = convenience and ease of use. 3) Its funny how people are whining for a rental system that we don't even know how its going to work.

 

[DakotaGuy]

1. I have a reasonably fast broadband connection and am currently downloading a 720p movie from Xbox Live (Harry Potter if you must know), as a test to see how long it takes. Its been 6 hours so far and on 72% for what is a 7GB file. While i'd love a choice between 720p and SD on iTunes, I wouldn'tbe surprised if Apple kept it non-HD. There is no instant gratification for the vast majority of users at the moment.

What does it matter if they offer a choice? Don't people go to work in the day or sleep at night? Start your download and go to bed. When you get up it will be done.

 

[JGowan]

Netflix: How it works…

Netflix Delivers DVD Rentals To You
With Netflix you can rent as many DVDs as you want and watch movies instantly on your PC for one low price. There are no late fees and no due dates, and DVD shipping is free both ways. Plans start from only $4.99 plus applicable tax. With our most popular plan, you can rent as many DVDs as you want (3 DVDs at-a-time) and watch 17 hours of movies instantly on your PC all for just $16.99 a month plus applicable tax. There are no additional charges. Click here to learn about other available plans.

Free DVD Shipping and Postage
Select your DVDs after sign-up and they should arrive in your mailbox in about 1 business day via U.S. mail. When you finish watching a movie, simply put it in its prepaid envelope and mail it back to us. After we receive your returned DVD, we'll send the next available DVD from your list. Shipping is always free both ways — no hidden charges. Plus, you can instantly watch movies and TV episodes instantly on your PC for no additional charge!

More Than 90,000 Movies
We have a wide selection of movies available. As a member, you'll be able to choose from any of our 90,000 DVD titles, including new releases, as well as over 6,000 movies and TV episodes such as The Matrix, Super Size Me, and The Office that you can watch instantly on your PC. Our web site is available 24 hours a day and makes finding movies simple and convenient.

Cost
Our most popular plan, 3 at-a-time (Unlimited)/17 hours instantly on your PC, is $16.99 plus any applicable tax per month. Click here to learn about other available plans. There are no additional charges. There are no late fees or due dates!

FREE TRIAL
New customers are eligible for a free trial. To avoid being charged after your trial, simply cancel your account before the trial ends. If you are enjoying Netflix, do nothing and your membership will automatically continue on the plan you have selected for as long as you choose to remain a member. See Terms of Use for complete membership and free trial details.

Getting Started
To get started with your FREE TRIAL, simply click the "Free Trial" button anywhere on the site and complete our sign-up process. Once signed up, use our web site to choose your movies.

Cancellation
You can easily cancel anytime, online, 24 hours a day. There are no cancellation fees.

About Netflix
Netflix is the world's largest online DVD rental service. In 2007, Netflix began offering members the ability to watch movies instantly on their PCs. Each month, Netflix provides movie entertainment to more than 7 million satisfied customers.

http://www.netflix.com/HowItWorks

-----

Anything less sucks.

 

[geerlingguy]

Don't mind the $4, I'd probably even pay up to $7, but only if:

-- new release, simultaneous with DVD release, older releases $2-$5
-- 30+ hours rental (2 nights viewing time)
-- at least 720p hi-def transfer, good compression
-- real 5.1 audio
-- apply rental cost to later purchase of either physical DVD or digital download if desired

Until you can give me that, you're not getting a cent of my money, . And I desperately want to give it to you.

I think Apple may have this idea up their sleeve: HD resolution, 5.1 audio via QuickTime, and $4 for new releases, $3 for non-new releases. $4 for a one-day copy of a poor-quality video like they have now is ridiculous.

 

[miketcool]

There's been a reversal on piracy? I'm not aware of it if there has been, but maybe a source would convince me.

http://www.usatoday.com/tech/products/services/2006-06-12-riaa_x.htm

I'm too lazy to dig up a bunch of articles. The gist of it was that trend of music piracy downloads slowed significantly, not a complete reversal, but a BIG change. Video piracy still increases in the double digits, and there should be seen a dip in that trend as well when a working instant access solution comes about.

 

[HyperZboy]

The reason redbox is cheaper is because the selection is so bad. You can rent movies for $0.99 (like older releases at Hollywood Video), but the selection is limited. The newest releases accont for 80-90% of rentals at a Blockbuster). At NetFlix, it is more like 40%. So for Apple, they will have a great selection (not as good as NetFlix, but better than VoD by an order of magnitude).

And you can put it on your iPhone, etc. And you can have 10 ready to go, on your mac. No problem, just need to watch it within 30 days of renting...and 24 hours from "playing".

You make some good points. But between Netflix and RedBox, it looks like I'll rarely need to use Apple's iTunes service for movies.

And guess what? I can put any movie on my iPhone RIGHT NOW!
All you need is the right software.
Why would I want to pay substantially more for something I can already do for less cost?

The reason the iTunes music store is so successful is because it makes no sense to go through all the trouble to steal music when you can have it for 99¢ I just don't see quite the same price motivation here with movies. My feeling is that unless the movie downloads are 1080i or at the very least 720p and with less restrictions than what's being rumored, why would I want this? As usual, the "corporate suits" just don't get it.

Unlike the iPhone and the iPod, where Apple has been competing against pretty crappy competition, the movie rental businesses have pretty much tried everything. Maybe Apple will surprise us with something no ones thought of before (that's my hope of course), but it's really hard for me to think of something at $3.99 for 24 hours only that I'd personally be interested in when there are so many other choices out there and many at less cost. Maybe the desperate lonely hotel traveller with a laptop in need of a quick porn fix?

 

[dan-o-mac]

So, tell me: what is compelling about the 20th entry into a particular market, with no distinguishing features?

The only presumed distinguishing feature I've seen here is an assumed large library. Which seems odd: all the companies mentioned so far are in the purchasable iTMS video store, and the selection there sucks. But, assuming that Apple is able to bring in every single movie ever made. That's a distinguishing feature, but needs to be balanced against the $300 entry fee to buy an TV.

I don't see how Apple will make inroads into the industry this way. It would be like putting out a cell phone that looks and behaves just like a Treo, except it has an Apple logo instead of a Palm logo, and costs more up front. There has to be a significant positive feature for Apple.

Apple is not a company which thrives in the clone wars. Their primary corporate image is based on innovation. Being just like the rest wastes that brand name.

Great post! While I do agree with your post, I see things in a different light. Unlike music where they kicked down the door, I think Apple is unsure how to go about it in an already established market and is just trying to get their foot in the door. The Mac community is too used Apple leapfrogging the competition, when we see a product that is on par with the competition we think of it as a flop. On another note I'm not sure what market this is for. This service is not going to make anyone want to go out and spend $300 on a AppleTV, which I'm sure is not selling well considering it was labeled a hobby, which brings us to how many sales will they actually get from current AppleTV users if their user base is so small? How many people that are not geeks actually have their home computer or laptop connected to their television, I'm going take a guess and say very little. Is the market that big for people to rent movies and watch on their computer or if permitted rent to watch on and iPod?

 

[billabong]

Don't worry, I'm sure we'll get it in 2 or 3 years time.

haha very true... We finally just got TV shows... But we can hope right? Movies are available on XBOX live in Canada. So you would think iTunes would want to get in on the action too.

 

[msharp]

I don't want to fight with someone, I'm just a little bit curious about your expectation for the pricing.

For those who think $4 is too high for 24 hrs, it's normal to spend $7-$10 to watch a movie in theater; it's fine to spend $10 on coffee and maybe another $10 on cookie when you are sitting in starbucks, which is usually less than 3 hours.

But when comes to movie rental, I guess once, not even 24 hours would be more than enough.

So back to my question, why are you guys complaining about the pricing?

P.S. Again, I'm not posting this for a fight, I just want to know what kind of pricing you were expecting.

 

[mambodancer]

Democracy of the market place.

This isn't really an apt analogy. DivX competed with DVD in the same way that VHS competed with Betamax and HD-DVD is currently competing with Blu-Ray. These were "format wars" where one is meant to succeed at the expense of the other. iTunes movie rentals are not an either/or situation like this - if you don't like the quality, you have plenty of other (higher-quality) options: DVD, VOD, or HD-DVD/Blu-Ray.

And, since the consumer decides, it is the consumers who win.

You can argue all you want about "quality" but that didn't help Betamax when it came to video tapes, it didn't help Laserdiscs when it came to DVD's, it won't help HD DVD when it comes to Blueray.

You vote with your dollars and if the iTunes movie rentals succeeds it is because the consumer wants it to succeed on whatever merits it has...probably convenience over whether it is HD or the length of time you have before it "expires" after purchase the rental.

 

[mambodancer]

You are right on

I don't want to fight with someone, I'm just a little bit curious about your expectation for the pricing.

For those who think $4 is too high for 24 hrs, it's normal to spend $7-$10 to watch a movie in theater; it's fine to spend $10 on coffee and maybe another $10 on cookie when you are sitting in starbucks, which is usually less than 3 hours.

But when comes to movie rental, I guess once, not even 24 hours would be more than enough.

So back to my question, why are you guys complaining about the pricing?

P.S. Again, I'm not posting this for a fight, I just want to know what kind of pricing you were expecting.

I agree. $4 is a fantastic rental price. (Which is about the price I pay for that coffee at Starbucks-not $10. Is that a NYC price or something?)