Ah I was right when I talked yesterday about digital distributions being the ITunes effect according to this very interesting article.
He's trying to protect a customer base of more than 4 million as digital entertainment shifts rapidly. Broadband distribution of movies and TV shows is fast becoming reality: ABC will start testing free online delivery of Desperate Housewives and other top shows next Monday.
Online retailer Amazon has talked to Hollywood studios about adding movie and TV show downloads to its website. Apple Computer hit the gas pedal last fall when it launched $1.99 downloads of ABC shows and other videos at its iTunes online store.
"All these competing products via digital delivery and not mail order," says analyst Frank Gristina at investment banker Avondale Partners. The pace, he says, has "clearly accelerated."
This can't be bigger hogwash when it comes to actual DVD movies that Netflix is sending out. The TV shows that you can download from iTunes cannot approach the quality of something that comes off of DVDs. About the only real good thing about them is that they are portable since you can watch them on your Ipod when you are riding the bus or something. This article hints at what I thought would happen as well. Netflix is working on their own digital download solution:
Hastings, a Boston native, isn't sweating yet. He's aiming to build an even bigger customer base - 20 million as early as 2010 - to ready Netflix for an eventual shift to downloads. That switch depends on several factors, he says. Critical hardware and software haven't been perfected. There aren't enough movies available in downloadable form. Plus, studios must still work out licensing agreements with existing distributors.
1 comment:
It will be interesting to see how direct competition and new technologies will intersect and market price points will fluctuate as the seasons change and consumers get hit with additional pulls on disc. income
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