The following article is about music, not movies. And it is from 11/27 so it was probably posted somewhere on AFB previously. However, it is an incredibly relevant and informative read for those who have the time.

Universal’s CEO Once Called iPod Users Thieves. Now He’s Giving Songs Away

The following excerpts reflect the fears of both the movie and music content providers who are petrified of iTunes’ continued growth:

This year, 22 percent of all music sold in the US will move through iTunes. “If iTunes gets up to 40 or 50 percent, they’ll have too much power for anyone else to enter the business,” says James McQuivey, who analyzes the digital music industry for Forrester Research. If the labels want out, they have two choices: Find a way to unseat the iPod or allow iTunes’ competitors to sell unprotected files that can play on Apple’s ubiquitous device.

The problem, Universal’s Morris says, is that “there’s sympathy for the consumer… ”

More wild speculation. I don’t think the News Corp connection is just movies in the iTunes store. I have long thought that satellite could be an important part of Apple’s content distribution in the medium term. It has 100% geographical coverage. It has a large aggregate bandwidth.

The glowing iPhone review on Sky TV, the gross overstatement of iPhone UK sales in the Sun and the iPhone version of Sky News didn’t happen by accident. Something specific to the UK will probably happen.

I’m thinking a UK rollout of a partnership merging PVR and download into a seamless offering, delivering iPod / iPhone to Sky, and UK TV watchers to Apple, probably by means of a dongle for Apple TV and/or networking of the Sky box. It lets Sky sidestep the threats it’s feeling from Freeview and Freesat digital alternatives by developing a new unique proposition for consumers.

[quote author=“sleepygeek”]More wild speculation. I don’t think the News Corp connection is just movies in the iTunes store. I have long thought that satellite could be an important part of Apple’s content distribution in the medium term. It has 100% geographical coverage. It has a large aggregate bandwidth.

The glowing iPhone review on Sky TV, the gross overstatement of iPhone UK sales in the Sun and the iPhone version of Sky News didn’t happen by accident. Something specific to the UK will probably happen.

I’m thinking a UK rollout of a partnership merging PVR and download into a seamless offering, delivering iPod / iPhone to Sky, and UK TV watchers to Apple, probably by means of a dongle for Apple TV and/or networking of the Sky box. It lets Sky sidestep the threats it’s feeling from Freeview and Freesat digital alternatives by developing a new unique proposition for consumers.

That would be absolutely breathtaking.

Really it’s my new Terratec USB satellite dongle recording and playing back DVB-S2 HD H264 content with the current release of EyeTV, and Elgato’s inexplicable complete failure to mention this ability to anyone, that started me thinking Elgato might be testing this in stealth mode for a reason.

Moviebeam is dead on 12/15:

http://www.engadget.com/2007/12/05/moviebeam-shutting-down-operations-on-december-15th/

Back on topic ... the studios want more $$$ for downloadable versions ... haven’t we already seen what happens when they control the pricing (ie. Walmart and Amazon Unbox)? ... the result is negligible sales ... while I don’t know this for sure, I would imagine the studios would be crowing about their success with these partners if any existed.

To charge almost as much for a download as a DVD is absolutely ridiculous ... especially given that most movies are not even worth the price of the plastic in a DVD.

[quote author=“Derrick”]To charge almost as much for a download as a DVD is absolutely ridiculous ... especially given that most movies are not even worth the price of the plastic in a DVD.

This is where negotiations come into play. It takes time for an industry built on glamour, bravado and greed to come around. Ultimately new revenue opportunities will win the day.

[quote author=“DawnTreader”][quote author=“Derrick”]To charge almost as much for a download as a DVD is absolutely ridiculous ... especially given that most movies are not even worth the price of the plastic in a DVD.

This is where negotiations come into play. It takes time for an industry built on glamour, bravado and greed to come around. Ultimately new revenue opportunities will win the day.

especially if DVD sales remain flat or decrease at Walmart and BestBuy compared to last year this holiday season.

It seems every analyst keeps talking about video, as if they expect Apple to announce something next year.

I think we will follow the same path as the iPod.  Apple will have one more studio and start offering rentals with a smaller selection and slowly build up over the coming years.

The problem will WalMart and Best Buy is sales space for non-blockbuster movies. These stores will move the top titles in volume, but will do little to sell catalog. iTunes presents a real opportunity to sell classics and lesser-known films thus generating sales of what might otherwise be under-performing assets.

There’s no real way to avoid sales through iTunes. I’m assuming the content owners don’t want to PO the big retailers until after the holidays.

[quote author=“DawnTreader”]The problem will WalMart and Best Buy is sales space for non-blockbuster movies. These stores will move the top titles in volume, but will do little to sell catalog. iTunes presents a real opportunity to sell classics and lesser-known films thus generating sales of what might otherwise be under-performing assets.

Correct and you can bet that SJ is holding out for the whole deal. i.e.’ we can sell these dust gathering flicks for you but we want the new stuff too AT A REASONABLE PRICE’ !!!

edit: further SJ pitch ... ‘‘We are opening thousands of small movie theatres*** every day ‘’
*** iTouch, iPhone, iPod,  TV

[quote author=“omacvi”][quote author=“DawnTreader”][quote author=“Derrick”]To charge almost as much for a download as a DVD is absolutely ridiculous ... especially given that most movies are not even worth the price of the plastic in a DVD.

This is where negotiations come into play. It takes time for an industry built on glamour, bravado and greed to come around. Ultimately new revenue opportunities will win the day.

especially if DVD sales remain flat or decrease at Walmart and BestBuy compared to last year this holiday season.

It seems every analyst keeps talking about video, as if they expect Apple to announce something next year.

I think we will follow the same path as the iPod.  Apple will have one more studio and start offering rentals with a smaller selection and slowly build up over the coming years.

I tend to agree—piracy with Movies has to get a major crisis point (like it did with music) before Hollywood does something about it… its on their radar screens more and more each year..

but as i keep saying… Hollywood can experiment more with VOD/Rentals without affecting DVD sales with Wal-Mart in the short run—but i suspect they realise that if VOD/Rental is too successful the market for DVD Sales will drop substantially…  This is all about supplier power in the meanwhile..

[quote author=“SNIPUS”]

edit: further SJ pitch ... ‘‘We are opening thousands of small movie theatres*** every day ‘’
*** iTouch, iPhone, iPod,  TV

Good point.

I think this season’s “sleeper” product is the iPod classic with its storage capacity and 2.5” screen.