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

Printopia 3.0.4 - Share Mac printers wit...
Run Printopia on your Mac to share its printers to any capable iPhone, iPad, or iPod Touch. Printopia will also add virtual printers, allowing you to save print-outs to your Mac and send to apps.... Read more
Tinderbox 7.3.1 - Store and organize you...
Tinderbox is a personal content management assistant. It stores your notes, ideas, and plans. It can help you organize and understand them. And Tinderbox helps you share ideas through Web journals... Read more
ExpanDrive 6.1.6 - Access cloud storage...
ExpanDrive builds cloud storage in every application, acts just like a USB drive plugged into your Mac. With ExpanDrive, you can securely access any remote file server directly from the Finder or... Read more
Printopia 3.0.4 - Share Mac printers wit...
Run Printopia on your Mac to share its printers to any capable iPhone, iPad, or iPod Touch. Printopia will also add virtual printers, allowing you to save print-outs to your Mac and send to apps.... Read more
Tinderbox 7.3.1 - Store and organize you...
Tinderbox is a personal content management assistant. It stores your notes, ideas, and plans. It can help you organize and understand them. And Tinderbox helps you share ideas through Web journals... Read more
ExpanDrive 6.1.6 - Access cloud storage...
ExpanDrive builds cloud storage in every application, acts just like a USB drive plugged into your Mac. With ExpanDrive, you can securely access any remote file server directly from the Finder or... Read more
VOX 3.0.1 - Music player that supports m...
VOX just sounds better! The beauty is in its simplicity, yet behind the minimal exterior lies a powerful music player with a ton of features and support for all audio formats you should ever need.... Read more
Merlin Project 4.3.3 - $289.00
Merlin Project is the leading professional project management software for OS X. If you plan complex projects on your Mac, you won’t get far with a simple list of tasks. Good planning raises... Read more
Mac DVDRipper Pro 7.1 - Copy, backup, an...
Mac DVDRipper Pro is the DVD backup solution that lets you protect your DVDs from scratches, save your batteries by reading your movies from your hard disk, manage your collection with just a few... Read more
iMazing 2.5.2 - Complete iOS device mana...
iMazing (was DiskAid) is the ultimate iOS device manager with capabilities far beyond what iTunes offers. With iMazing and your iOS device (iPhone, iPad, or iPod), you can: Copy music to and from... Read more

Latest Forum Discussions

See All

148Apps' Ultimate Guide to Black Fr...
Black Friday is here, and there are a whole lot of discounts running right now for folks on the lookout for new mobile devices, accessories, and yes, even games. Here's a helpful rundown of what you'll find both in stores and online. Happy... | Read more »
The best Black Friday mobile game deals
Black Friday's upon us, and if you've happened to nab a fancy new phone during the week's big savings, you might be searching for some new games to fill up space on your new gadget. There are a lot of great games on sale right now for Black Friday... | Read more »
The best mobile games to play while your...
Thanksgiving is a time to reconnect with loved ones, eat lots of food, and all of that jazz, but once the festivities start to wind down, folks tend to head to the couch to watch whatever football is happening for Turkey Day. | Read more »
The best Black Friday deals for Apple ga...
Black Friday is hours away at this point, but many popular retailers are getting a jump on things with plenty of pre-Black Friday sales already available. Many of those early bird sales including some sharp discounts on the latest Apple phones... | Read more »
The Inner World 2 (Games)
The Inner World 2 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: Solve mind-bending puzzles in a world full of mystery and save the family of the flute-noses! Their dynasty has been... | Read more »
warbot.io wants you for the robot wars
Fans of epic gundam-style battles will find a lot to love in warbot.io, the first game for up and coming developer Wondersquad. The game saw a lot of success when it first launched for browsers and Facebook, and now even more people are getting the... | Read more »
Uncover alien mysteries in cross-genre s...
If the Alien franchise taught us anything, it’s that landing on a strange planet at the behest of a faceless corporation is probably asking for trouble. And Eldritch Game’s Deliria doesn’t prove otherwise. In 2107, Dimension LG7 is rich with... | Read more »
The best mobile games to play during dre...
| Read more »
Animal Crossing: Pocket Camp beginner...
Animal Crossing: Pocket Camp, was just announced yesterday, but it's already in soft launch in Australia. No matter where you are in the world, you can still get access to the soft launch on iOS, so we've devised a few beginner tips for folks who... | Read more »
The mobile gamer's guide to Black F...
We're starting to catch wind of some exciting deals in the mobile gaming space for Black Friday. There are big discounts on mobile phones and accessories cropping up already, so you might want to get a move on things ahead of the big day. It's... | Read more »

Price Scanner via MacPrices.net

Apple Black Friday sale for 2017: $150 Apple...
BLACK FRIDAY Apple has posted their Black Friday deals for 2017. Receive a $150 Apple gift card with the purchase of select Macs and up to $100 with various iPads, iPhones, and Apple Watches. The... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 15″ and 13″ MacBook Pros on sale for up to $200 off MSRP as part of the Black Friday and Holiday sale. Shipping is free, and B&H charges sales tax for NY & NJ residents only... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 12″ MacBooks on sale for $150 off MSRP as part of the Black Friday and Holiday sale. Shipping is free, and B&H charges sales tax for NY & NJ residents only: – 12″ 1.2GHz... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 10.5″ iPad Pros in stock today and on sale for up to $130 off MSRP. Each iPad includes free shipping, and B&H charges sales tax in NY & NJ only: – 10.5″ 64GB WiFi iPad Pro... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 13″ MacBook Airs on sale for up to $150 off MSRP as part of the Black Friday and Holiday sale. Shipping is free, and B&H charges sales tax for NY & NJ residents only: – 13″... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has 27″ and 21″ iMacs on sale for up to $200 off MSRP as part of the Black Friday and Holiday sale. Shipping is free, and B&H charges sales tax for NY & NJ residents only: – 27... Read more
Black Friday 2017: Where to find the best dea...
B&H Photo has Mac minis on sale for $100 off MSRP as part of their Black Friday sale, each including free shipping plus NY & NJ sales tax only: – 1.4GHz Mac mini: $399 $100 off MSRP – 2.6GHz... Read more
Black Friday 2017: Find the best deals and lo...
Scan our exclusive price trackers for the latest Black Friday 2017 sales & deals and the lowest prices available on Apple Macs, iPads, and gear from Apple’s authorized resellers. We update the... Read more
Black Friday: 27″ 3.4GHz iMac for $1599, save...
Amazon has the 27″ 3.4GHz Apple iMac on sale for $1599.99 as part of their Black Friday sale. That’s $200 off MSRP, and shipping is free. Their price is currently the lowest price available for this... Read more
Black Friday: 13″ 2.3GHz/256GB MacBook Pro fo...
Amazon has the 13″ 2.3GHz/256GB Apple MacBook Pro on sale for $1299.99 as part of their Black Friday sale. Shipping is free: – 13-inch 2.3GHz/256GB Space Gray MacBook Pro (MPXT2LL/A): $1299.99 $200... Read more

Jobs Board

Business Development Manager, *Apple* Pay -...
# Business Development Manager, Apple Pay Job Number: 112919084 Santa Clara Valley, California, United States Posted: 18-Aug-2017 Weekly Hours: 40.00 **Job Summary** Read more
Digital Marketing Media Planner, *Apple* Se...
# Digital Marketing Media Planner, Apple Services Job Number: 113080212 Culver City, California, United States Posted: 03-Oct-2017 Weekly Hours: **Job Summary** Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
Business Development Manager, *Apple* Pay -...
# Business Development Manager, Apple Pay Job Number: 112919084 Santa Clara Valley, California, United States Posted: 18-Aug-2017 Weekly Hours: 40.00 **Job Summary** Read more
*Apple* Solutions Consultant - Apple (United...
# Apple Solutions Consultant Job Number: 56553863 North Wales, Pennsylvania, United States Posted: 17-Jun-2017 Weekly Hours: 40.00 **Job Summary** Are you passionate Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.