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

EtreCheck 3.4.2 - For troubleshooting yo...
EtreCheck is an app that displays the important details of your system configuration and allow you to copy that information to the Clipboard. It is meant to be used with Apple Support Communities to... Read more
Hopper Disassembler 4.2.10- - Binary dis...
Hopper Disassembler is a binary disassembler, decompiler, and debugger for 32- and 64-bit executables. It will let you disassemble any binary you want, and provide you all the information about its... Read more
VueScan 9.5.81 - Scanner software with a...
VueScan is a scanning program that works with most high-quality flatbed and film scanners to produce scans that have excellent color fidelity and color balance. VueScan is easy to use, and has... Read more
iFFmpeg 6.4.2 - Convert multimedia files...
iFFmpeg is a comprehensive media tool to convert movie, audio and media files between formats. The FFmpeg command line instructions can be very hard to master/understand, so iFFmpeg does all the hard... Read more
Fantastical 2.4.1 - Create calendar even...
Fantastical 2 is the Mac calendar you'll actually enjoy using. Creating an event with Fantastical is quick, easy, and fun: Open Fantastical with a single click or keystroke Type in your event... Read more
Fantastical 2.4.1 - Create calendar even...
Fantastical 2 is the Mac calendar you'll actually enjoy using. Creating an event with Fantastical is quick, easy, and fun: Open Fantastical with a single click or keystroke Type in your event... Read more
Live Home 3D Pro 3.2.2 - $69.99
Live Home 3D Pro, a successor of Live Interior 3D, is the powerful yet intuitive home design software that lets you build the house of your dreams right on your Mac. It has every feature of Live Home... Read more
Live Home 3D Pro 3.2.2 - $69.99
Live Home 3D Pro, a successor of Live Interior 3D, is the powerful yet intuitive home design software that lets you build the house of your dreams right on your Mac. It has every feature of Live Home... Read more
FileZilla 3.27.0.1 - Fast and reliable F...
FileZilla (ported from Windows) is a fast and reliable FTP client and server with lots of useful features and an intuitive interface. Version 3.27.0.1: MSW: Add misssing file to .zip binary package... Read more
Spotify 1.0.59.395. - Stream music, crea...
Spotify is a streaming music service that gives you on-demand access to millions of songs. Whether you like driving rock, silky R&B, or grandiose classical music, Spotify's massive catalogue puts... Read more

Latest Forum Discussions

See All

The best deals on the App Store this wee...
There are quite a few truly superb games on sale on the App Store this week. If you haven't played some of these, many of which are true classics, now's the time to jump on the bandwagon. Here are the deals you need to know about. [Read more] | Read more »
Realpolitiks Mobile (Games)
Realpolitiks Mobile 1.0 Device: iOS Universal Category: Games Price: $5.99, Version: 1.0 (iTunes) Description: PLEASE NOTE: The game might not work properly on discontinued 1GB of RAM devices (iPhone 5s, iPhone 6, iPhone 6 Plus, iPad... | Read more »
Layton’s Mystery Journey (Games)
Layton’s Mystery Journey 1.0.0 Device: iOS Universal Category: Games Price: $15.99, Version: 1.0.0 (iTunes) Description: THE MUCH-LOVED LAYTON SERIES IS BACK WITH A 10TH ANNIVERSARY INSTALLMENT! Developed by LEVEL-5, LAYTON’S... | Read more »
Full Throttle Remastered (Games)
Full Throttle Remastered 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: Originally released by LucasArts in 1995, Full Throttle is a classic graphic adventure game from industry legend Tim... | Read more »
Stunning shooter Morphite gets a new tra...
Morphite is officially landing on iOS in September. The game looks like the space shooter we've been needing on mobile, and we're going to see if it fits the bill quite shortly. The game's a collaborative effort between Blowfish Studios, We're Five... | Read more »
Layton's Mystery Journey arrives to...
As you might recall, Layton's Mystery Journey is headed to iOS and Android -- tomorrow! To celebrate the impending launch, Level-5's released a new trailer, complete with an adorable hamster. [Read more] | Read more »
Sidewords (Games)
Sidewords 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Grab a cup of coffee and relax with Sidewords. Sidewords is part logic puzzle, part word game, all original. No timers. No... | Read more »
Noodlecake Games' 'Leap On!...
Noodlecake Games is always good for some light-hearted arcade fun, and its latest project, Leap On! could carry on that tradition. It's a bit like high stakes tetherball in a way. Your job is to guide a cute little blob around a series of floating... | Read more »
RuneScape goes mobile later this year
Yes, RuneScape still exists. In fact, it's coming to iOS and Android in just a few short months. Jagex, creators of the hit fantasy MMORPG of yesteryear, is releasing RuneScape Mobile and Old School RuneScape for mobile devices, complete with... | Read more »
Crash of Cars wants you to capture the c...
Crash of Cars is going full on medieval in its latest update, introducing castles and all manner of new cars and skins fresh from the Dark Ages. The update introduces a new castle-themed map (complete with catapults) and a gladiator-style battle... | Read more »

Price Scanner via MacPrices.net

Apple Move Away from White Label Event Apps C...
DoubleDutch, Inc., a global provider of Live Engagement Marketing (LEM) solutions, has made a statement in the light of a game-changing announcement from Apple at this year’s WWDC conference.... Read more
70 Year Old Artist Creates Art Tools for the...
New Hampshire-based developer Pirate’s Moon has announced MyArtTools 1.1.3, the update to their precision drawing app, designed by artist Richard Hoeper exclusively for use with the 12.9-inch iPad... Read more
Sale! New 2017 13-inch 2.3GHz MacBook Pros fo...
Amazon has new 2017 13″ 2.3GHz/128GB MacBook Pros on sale today for $150 off MSRP including free shipping. Their prices are the lowest available for these models from any reseller: – 13″ 2.3GHz/128GB... Read more
13″ 2.3GHz/128GB Space Gray MacBook Pro on sa...
MacMall has the 13″ 2.3GHz/128GB Space Gray MacBook Pro (MPXQ2LL/A) on sale for $1219 including free shipping. Their price is $80 off MSRP. Read more
Clearance 2016 12-inch Retina MacBooks, Apple...
Apple recently dropped prices on Certified Refurbished 2016 12″ Retina MacBooks, with models now available starting at $1019. Apple will include a standard one-year warranty with each MacBook, and... Read more
Save or Share
FotoJet Designer, is a simple but powerful new graphic design apps available on both Mac and Windows. With FotoJet Designer’s 900+ templates, thousands of resources, and powerful editing tools you... Read more
Logo Maker Shop iOS App Lets Businesses Get C...
A newly released app is designed to help business owners to get creative with their branding by designing their own logos. With more than 1,000 editable templates, Logo Maker Shop 1.0 provides the... Read more
Sale! New 15-inch MacBook Pros for up to $150...
Amazon has the new 2017 15″ MacBook Pros on sale for up to $150 off MSRP including free shipping: – 15″ 2.8GHz MacBook Pro Space Gray: $2249 $150 off MSRP – 15″ 2.89Hz MacBook Pro Space Gray: $2779 $... Read more
DEVONthink To Go 2.1.7 For iOS Brings Usabili...
DEVONtechnologies has updated DEVONthink To Go, the iOS companion to DEVONthink for Mac, with enhancements and bug fixes. Version 2.1.7 adds an option to clear the Global Inbox and makes the grid... Read more
15-inch 2.2GHz Retina MacBook Pro, Apple refu...
Apple has Certified Refurbished 2015 15″ 2.2GHz Retina MacBook Pros available for $1699. That’s $300 off MSRP, and it’s the lowest price available for a 15″ MacBook Pro. An Apple one-year warranty is... Read more

Jobs Board

Frameworks Engineering Manager, *Apple* Wat...
Frameworks Engineering Manager, Apple Watch Job Number: 41632321 Santa Clara Valley, California, United States Posted: Jun. 15, 2017 Weekly Hours: 40.00 Job Summary Read more
Product Manager - *Apple* Pay on the *Appl...
Job Summary Apple is looking for a talented product manager to drive the expansion of Apple Pay on the Apple Online Store. This position includes a unique Read more
*Apple* Retail - Multiple Positions - Apple...
SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions - Apple...
SalesSpecialist - Retail Customer Service and SalesTransform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Senior Payments Architect - *Apple* Pay - A...
Changing the world is all in a day's work at Apple . If you love innovation, here's your chance to make a career of it. You'll work hard. But the job comes with more Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.