Can Apple dominate the digital movie/TV market?
TweetFollow Us on Twitter

Can Apple dominate the digital movie/TV market?

Is Apple on the verge of dominating the digital movie market and revolutionizing television, as well? Those answers are "looks like it" (digital movies) and "outlook cloudy" (television viewing).

When it comes to digital movie sales, Apple already controls 65% of the market, according to research by IHS Screen Digest. Now as as Apple expands digital offerings into the cloud via iCloud, it threatens to dwarf Hollywood's own UltraViolet cloud initiative with the only credible challenge coming from Amazon and Google, not the movie industry.

"If they do this right, Apple is in the lead position," James McQuivey, an analyst with of Forrester Research told "TheWrap" (http://macte.ch/G8qU4). "They're already in a strong position. The dark horse here is Amazon, not UltraViolet."

UltraViolet is a cloud-based movie storage solution that the industry is betting (or at least hoping) will convince consumers to buy movies instead of renting them. How? The "digital locker" solution keeps copies of films you've bought on remote servers for viewing any time on various devices. Last month Walmart announced that it would offer a service to turn physical DVD/Blu-ray collections across the U.S. into digital movies.

UltraViolet was designed to promote digital ownership as opposed to the streaming or rental market dominated by Netflix or Redbox. It was also intended to prop up sagging disc sales by adding digital rights to DVDs and Blu-rays.

But so far it hasn't caught on. According to "TheWrap," in January, its backers announced that roughly 750,000 accounts had been set up, much fewer than analysts had anticipated. The system, some customers complained, is overly complicated. What's more, Apple isn't offering UltraViolet purchases on its iTunes store.

"The studios' fondest wish is that iTunes comes on board and becomes an UltraViolet licensee and starts providing stuff that is compatible with what everyone else is selling," Tom Adams, principal analyst and director of U.S. media for IHS Screen Digest, told "TheWrap."

For now, the studios don't seem to mind that Apple may cannibalize its own cloud project, the article adds. Sony, Disney, Lionsgate, Warner Bros and Paramount have reached agreements with Apple. Fox and Universal are expected to follow suit in the next few months once they renegotiate licensing deals with HBO that are preventing them from releasing their films to the cloud, according to an individual with knowledge of the talks.

With Apple's help, studios hope they can convince consumers into once again building video collections, this time in the cloud, just as they once had DVD libraries in their homes. And we movie lovers enjoy having our own collection. Personally, I like having films I've bought in both physical (you still can't beat Blu-ray for the utmost in quality) and in the cloud.

So when it comes to digital movies, Apple is in the best possible position. As for dominating the world of television, that's going to take some work, though the industry needs a good shake-up. Folks like me are unhappy with their cable and satellite bills, in which we pay for channels we never watch. Plus, the prices seem to jump every couple of months. And that doesn't look like it will change.

According to "USA Today" (http://macte.ch/4oU8o): Some may be cutting the cord, but those who are keeping their pay TV service can expect to pay more.
Monthly pay TV rates have grown about 6% annually, which should bring the average bill -- currently about $84 -- up to $123 per month by 2015 and $200 by 2020, according to data from the NPD research group (http://www.npd.com).

"As pay-TV costs rise and consumers' spending power stays flat, the traditional affiliate-fee business model for pay-TV companies appears to be unsustainable in the long term," NPD research director Keith Nissen told "USA Today." He adds that the challenge from streaming video services such as Netflix "might be the spark that ignites the necessary business-model transformation of the pay-TV industry."

Still, despite the popularity of Netflix and other streaming services such as Hulu, consumers remain devoted to pay TV services, according to the NPD report based on 1,000 consumer households surveyed quarterly and another 10,000 consumers surveyed semi-annually. More than six out of 10 (62%) want premium TV services delivered by their pay TV provider or a service affiliated with their provider. Only 20% were likely to cancel their pay TV service, even if they could get their favorite shows online.

"Pay-TV providers offer a convenient, one-stop shop for subscribers, and the majority of customers like it that way," NPD's senior vice president of industry analysis Russ Crupnick told "USA Today." "There is an open window for the industry to meet consumer needs and become to television what iTunes is to music; however, there is also a definite risk if pay-TV providers don't capitalize on the opportunity -- and soon."

Eighty-four percent of U.S. homes subscribe to pay TV services. The economic downturn and mortgage crisis resulted in five million fewer U.S. households viewing pay TV services, NPD says. However, the total pay TV subscriptions haven't dipped much despite the economy, the research group adds.

So can Apple revamp the industry with its rumored HDTV (the "iTV" or "iPanel"). Perhaps, but the company has its work cut out for it. In a note to clients -- as reported by "Deadline" (http://macte.ch/XLq3r) -- BTIG analyst Rich Greenfield says not to expect such a device this year.

Not that Apple doesn't have an opening. The user interfaces and remote controls from TV manufacturers and pay TV companies "are horrible – they are the polar  opposite of intuitive and they certainly don’t 'just work'," Greenfield told "Deadline."

However, the media ecosystem is “quite complex and requires a lot of agreements between parties that are still  trying to figure out if they are friends or enemies or somewhere in between.”  His advice to Apple: start off by developing a device for satellite companies DirecTV and Dish Network that would redesign the look and feel of the viewing experience. That would provide national reach” and pressure cable companies to play ball."

"Once a consumer upgrades their living room TV, they are going to want to  replicate that experience on other TVs throughout their home” -- opening the way for Apple to sell its own TV set -- Greenfield tells "Deadline." He even envisions a way for Apple to offer a rival pay TV service via the Internet.

"If Apple is willing to take all the content (meaning no cherry picking the  best channels) from each content owner at a premium price (figure $40+ per  sub/month compared to Comcast’s rate of around $30/sub/month), we believe  a significant number of programmers would agree to license  programming" to Apple, he says.

Greenfield is probably onto something. However, I still think that at some point in the future -- sooner rather than later, hopefully -- consumer demand and online competition will result in "a la carte" TV programming options. In other words, folks like me will play for the 20-30 channels we actually watch, not for 100-plus channels, most of which we could care less about.

-- Dennis Sellers

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Latest Forum Discussions

See All

Combo Quest (Games)
Combo Quest 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Combo Quest is an epic, time tap role-playing adventure. In this unique masterpiece, you are a knight on a heroic quest to retrieve... | Read more »
Hero Emblems (Games)
Hero Emblems 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: ** 25% OFF for a limited time to celebrate the release ** ** Note for iPhone 6 user: If it doesn't run fullscreen on your device... | Read more »
Puzzle Blitz (Games)
Puzzle Blitz 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Puzzle Blitz is a frantic puzzle solving race against the clock! Solve as many puzzles as you can, before time runs out! You have... | Read more »
Sky Patrol (Games)
Sky Patrol 1.0.1 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.1 (iTunes) Description: 'Strategic Twist On The Classic Shooter Genre' - Indie Game Mag... | Read more »
The Princess Bride - The Official Game...
The Princess Bride - The Official Game 1.1 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1 (iTunes) Description: An epic game based on the beloved classic movie? Inconceivable! Play the world of The Princess Bride... | Read more »
Frozen Synapse (Games)
Frozen Synapse 1.0 Device: iOS iPhone Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Frozen Synapse is a multi-award-winning tactical game. (Full cross-play with desktop and tablet versions) 9/10 Edge 9/10 Eurogamer... | Read more »
Space Marshals (Games)
Space Marshals 1.0.1 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.1 (iTunes) Description: ### IMPORTANT ### Please note that iPhone 4 is not supported. Space Marshals is a Sci-fi Wild West adventure taking place... | Read more »
Battle Slimes (Games)
Battle Slimes 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: BATTLE SLIMES is a fun local multiplayer game. Control speedy & bouncy slime blobs as you compete with friends and family.... | Read more »
Spectrum - 3D Avenue (Games)
Spectrum - 3D Avenue 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: "Spectrum is a pretty cool take on twitchy/reaction-based gameplay with enough complexity and style to stand out from the... | Read more »
Drop Wizard (Games)
Drop Wizard 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Bring back the joy of arcade games! Drop Wizard is an action arcade game where you play as Teo, a wizard on a quest to save his... | Read more »

Price Scanner via MacPrices.net

Our MacBook Price Trackers will show you the...
Our Apple award-winning MacBook Price Trackers are continually updated with the latest information on prices, bundles, and availability for 16″ and 14″ MacBook Pros along with 13″ and 15″ MacBook... Read more
Amazon is offering a 10% discount on Apple’s...
Don’t pay full price! Amazon has 16-inch M4 Pro MacBook Pros (Silver and Black colors) on sale today for 10% off Apple’s MSRP. Shipping is free. These are the lowest prices currently available for 16... Read more
13-inch M4 MacBook Airs on sale for $150 off...
Amazon has new 13″ M4 MacBook Airs on sale for $150 off MSRP right now, starting at $849. Sale prices apply to most colors and configurations. Be sure to select Amazon as the seller, rather than a... Read more
15-inch M4 MacBook Airs on sale for $150 off...
Amazon has new 15″ M4 MacBook Airs on sale for $150 off Apple’s MSRP, starting at $1049. Be sure to select Amazon as the seller, rather than a third-party: – 15″ M4 MacBook Air (16GB/256GB): $1049, $... Read more
Amazon is offering a $50 discount on Apple’s...
Amazon has Apple’s 11th-generation A16 iPads in stock on sale for $50 (or a little more) off MSRP this week. Shipping is free: – 11″ 11th-generation 128GB WiFi iPads: $299 $50 off MSRP – 11″ 11th-... Read more
Clearance 13-inch M1 MacBook Airs available f...
Walmart has clearance, but new, Apple 13″ M1 MacBook Airs (8GB RAM, 256GB SSD) available online for $649, $360 off original MSRP, in Space Gray, Silver, and Gold colors. These are new MacBooks for... Read more
iPad minis on sale for $100 off Apple’s MSRP...
Amazon is offering $100 discounts (up to 20% off) on Apple’s newest 2024 WiFi iPad minis, each with free shipping. These are the lowest prices available for new minis among the Apple retailers we... Read more
AirPods Max headphones on sale for $479, $70...
Amazon has AirPods Max with USB-C on sale for $479.99 in all colors. Shipping is free. Their price is $70 off Apple’s MSRP, and it’s the lowest price available today for AirPods Max. Keep an eye on... Read more
14-inch M4 Pro/M4 Max MacBook Pros on sale th...
Don’t pay full price! Get a new 14″ MacBook Pro with an M4 Pro or M4 Max CPU for up to $320 off Apple’s MSRP this weekend at these retailers…they are the lowest prices available for these MacBook... Read more
Get a 15-inch M4 MacBook Air for $150 off App...
A couple of Apple retailers are offering $150 discounts on new 15″ M4 MacBook Airs this weekend. Prices at these retailers start at $1049: (1): Amazon has new 15″ M4 MacBook Airs on sale for $150 off... Read more

Jobs Board

All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.