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Real Networks, Starz To Offer Movie Download Service

Real Networks, Starz To Offer Movie Download Service

by , 11:00 AM EDT, June 14th, 2004

The New York Times is reporting that cable movie channel Starz and Real Networks will begin offering an online movie download subscription service. The new service will allow computer users to download more than 100 of the latest movies for a US$12.95 per month subscription.

According to the Times, the movies can be played only from the computer on which they were downloaded, and have an expiration date. Due to bandwidth restrictions, the resolution of the movies will be somewhat less than those on DVD, but the report says that movies will fill the screen. From the article Selling 'Nemo' Online, Trying to Repel Pirates:

The new service, called Starz Ticket on Real Movies, will cost $12.95 a month, and subscribers will be able to download and watch 100 or more movies each month, using Real's media player software.

As on the Starz cable service, which is owned by Liberty Media, the movies available will include recent Hollywood films, usually about a year after they were released, and some older titles. The movies available this month include "Finding Nemo," "Pirates of the Caribbean: The Curse of the Black Pearl" and "The Poseidon Adventure."

The service represents the first time that mainstream films have been available as part of a flat-rate subscription plan over the Internet. A few existing services offer an Internet version of pay-per-view, in which single films can be downloaded for a fee of $1 to $5. But those movies typically can be watched only during a 24-hour period after purchase.

The article goes on to discuss the practicalities of the movie service, and it also discussed the growing trend by movie studios to consider movie download services based on a model similar to that of Apple's iTunes Music Store. You can find more information in the full article at the New York Times' Web site.

Note; The New York Times requires a free registration in order to read the article.

The Mac Observer Spin:

Our take is that services like Starz Ticket will find a very limited audience, at least in the current marketplace. People want to watch theater-quality movies on their big-screen TVs, not some reduced resolution version that sits on your computer (mobile use on laptops being the exception). It seems that Real Networks hasn't learned that people want to own the music and movies they buy; if they just want to watch, they get cable or satellite TV, where on-demand movies have existed for years.

We also believe that current computer technology is not good enough to handle movies as the average Joe or Jill might handle music; hard drive capacity, bandwidth, and processor power will need to increase dramatically before downloading DVD quality movies become practical for the average user on a Mac or PC.

There are those who already trade high quality pirated copies of movies today, but these folks must have huge amounts of storage, at the very least, as well as time on their hands. High-quality movies might be several gigabytes in size, while the low-quality movies are hardly worth watching.

Indeed, this is one of the reasons we think the movie studios are wrong when they say that digital piracy is a threat to their industry, and the proof is in the record box-office receipts we see month after month. It's the commercial piracy rings that are the real threat, especially the organized commercial pirate outfits based in Asia, but then complaining about that won't win the movie industry even more copyright power in Congress, so we don't hear about that.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Kircle Posts: 271 Joined: 06 May 2004
Subject:

I think this is one of the few times I will disagree with TMO's staff. I've actually tried one of those other online movie rental services called MovieLink, and I actually liked using their service. Will probably rent more movies from them in the future. Yes the video was compressed and yes I did watch it on my PC desktop, but it didn't bother me as much as some might think. Don't underestimate how many people will place convenience before quality. Good example: McDonalds. Have you seen "Super-size Me"? I will probably not visit another fast food joint for the next year. I'm serious.

Close Name:Guest
Subject: Obviously a Pilot Program

Just like all paid content, it takes time to develop viable business models and satisfy technology restraints. Of course, Starz will find a limited audience today but only growth will result as broadband adoption continues to rise and technology continues to improve. Eventually all TVs, stereos, handheld devices, etc will be IP enabled. So your argument that people only watch movies on TV becomes moot. Open up your mind and use vision not hate for Real.

Close Name:Guest
Subject: Not likely to succeed

Let's see – people spend thousands of dollars on HDTVs, home theater systems, Bose speakers, etc., and we're now supposed to spend $13 to download a movie just so we don't have to go down to Blockbuster and spend $4? Or to Wal-Mart and BUY it for $18? And you could be back home probably an hour before you finished downloading it. If you want to back up the DVD you just downloaded, you've just spend the money to buy the new, higher-quality (in both video and sound) version. Thanks, I'll pass.

Close Name:Guest
Subject: Laptop Movies

When you consider that laptops are selling as well as desktops, "mobile use an a laptop" is far less the exception than it used to be. Also, people want to rent movies, if Blockbuster and the plethora of "video rental" stores in my neighborhood are any indication. Considering that movies are probably at least 100 times larger than your average MP3, the idea that I would want to have a bunch of movies on my hard drive in the same way that I have a bunch of songs is not likely.

Close Name:Clayton.S Posts: 3020 Joined: 24 Nov 2002
Subject:

I think it's a start of a decent service. Why? Well, first of all, I have no desire to buy movies. I rarely watch the same one more than once. So this service would be great for me.

But I can still see why this service is likely not to last. Maybe if they used QuickTime...

Close Name:jfbiii Posts: 109 Joined: 06 May 2004
Subject: That sucking sound is Real's loss margin increasing.

"download and watch 100 or more movies each month, using Real's media player software."

Don't they mean, "using Real's adware?" It's mess right off the block. Eventually most home entertainment may be IP enabled, making some similar service viable. But I'd look to this to put a huge dent in Real's bottom line for at least the next 24 months, if they can even sustain the losses that long. For certain, Glaser is dumb enough to have overestimated the market for this service, underestimated the time to profitability, and overestimated the consumer's tolerance for his software.

He so badly wants to BE Steve Jobs that he can't help himself.

Close Name:Kircle Posts: 271 Joined: 06 May 2004
Subject:

To be fair to Real, their RealPlayer has improved and in their last release they've cleaned up their act a bit. But these changes may have come at a time when it is too little too late. Most people I know refuses to touch RealPlayer. And last I checked that link on their website to the free player is still really hard to find, which doesn't help. But it is interesting to note that they do develop Helix, an open source Linux player that can play real media files among other things. I've tried it out. It's quite lean.

Close Name:KitsuneStudios Posts: 2490 Joined: 25 Oct 2001
Subject: Re: Not likely to succeed

Quote
Anonymous wrote:
we're now supposed to spend $13 to download a movie just so we don't have to go down to Blockbuster and spend $4?


Bear in mind, that $13 is a monthly subscription with a 100 view/month maximum. If you watch just one movie a week, it's already cheaper than most video rental stores. You could theoretically download a movie a day and bring the cost per showing to 43 cents a showing. Given the cost of ordering premium movie channels on Cable, or ordering Pay-per-view or onDemand style movies from the cable company, that's not such a bad deal.

I prefer owning films and seeing them on my home system though, so I probably won't sign up for this personally. I do think there is a market for it though.

Now, if this sort of service allowed me to order from a catalog of TV episodes on DVD as well, I'd cancel my cable service and go this way. I don't have to worry about missing an episode or seeing them out of order, I'd get 6 months of service for the price of a single-season box set, I could watch at my leisure, and wouldn't have to waste reams of video tape or lots of storage space on my DVR box for favorite episodes: I could just watch them again whenever I wanted.

Close Name:jfbiii Posts: 109 Joined: 06 May 2004
Subject: jfbiii

That's kind of where I think home entertainment will go: imagine a limitless TiVo that's already recorded everything that was on every channel for the last year.

Movies and TV shows I definitely have a very limited interest in owning. So a rental/subscription/ppv model of some sort is not out of the question. But the chances that Real will make something worth my time and frustration, which I consider inevitable coming from them? Highly unlikely.

Close Name:rkfoster Posts: 32 Joined: 06 May 2004
Subject: Starz is the only bright spot here

The only thing that suggests to me that this service might have a future is the Starz company. I currently subscribe to their(Starz) "blocks" of movie types through my cable company and I think they are very good at picking movies to offer. Their cable tv service is worth the money.

As to why I would change from thier cable service to watching poor quality movies that take forever to download and watching them through the annoying Real player on my desktop computer...?? You got me on that one.

Close Name:Guest
Subject: real one player

very good

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