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

 
AAPL
$108.00
Apple Inc.
+1.02
MSFT
$46.95
Microsoft Corpora
+0.90
GOOG
$559.08
Google Inc.
+8.77

MacTech Search:
Community Search:

Software Updates via MacUpdate

Vitamin-R 2.20b1 - Personal productivity...
Vitamin-R creates the optimal conditions for your brain to work at its best by structuring your work into short bursts of distraction-free, highly focused activity alternating with opportunities for... Read more
Dropbox 2.10.44 - Cloud synchronization...
Dropbox is an application that creates a special Finder folder that automatically syncs online and between your computers. It allows you to both backup files and keep them up-to-date between systems... Read more
Sandvox 2.9.2 - Easily build eye-catchin...
Sandvox is for Mac users who want to create a professional looking website quickly and easily. With Sandvox, you don't need to be a Web genius to build a stylish, feature-rich, standards-compliant... Read more
Cocktail 8.0.1 - General maintenance and...
Cocktail is a general purpose utility for OS X that lets you clean, repair and optimize your Mac. It is a powerful digital toolset that helps hundreds of thousands of Mac users around the world get... Read more
LibreOffice 4.3.3.2 - Free Open Source o...
LibreOffice is an office suite (word processor, spreadsheet, presentations, drawing tool) compatible with other major office suites. The Document Foundation is coordinating development and... Read more
VMware Fusion 7.0.1 - Run Windows apps a...
VMware Fusion allows you to create a Virtual Machine on your Mac and run Windows (including Windows 8.1) and Windows software on your Mac. Run your favorite Windows applications alongside Mac... Read more
OneNote 15.3.2 - Free digital notebook f...
OneNote is your very own digital notebook. With OneNote, you can capture that flash of genius, that moment of inspiration, or that list of errands that's too important to forget. Whether you're at... Read more
Audio Hijack Pro 2.11.4 - Record and enh...
Audio Hijack Pro drastically changes the way you use audio on your computer, giving you the freedom to listen to audio when you want and how you want. Record and enhance any audio with Audio Hijack... Read more
Iridient Developer 3.0.0 beta 3 - Powerf...
Iridient Developer (was RAW Developer) is a powerful image conversion application designed specifically for OS X. Iridient Developer gives advanced photographers total control over every aspect of... Read more
TextWrangler 4.5.11 - Free general purpo...
TextWrangler is the powerful general purpose text editor, and Unix and server administrator's tool. Oh, and also, like the best things in life, it's free. TextWrangler is the "little brother" to... Read more

Latest Forum Discussions

See All

Monster Flash Review
Monster Flash Review By Jordan Minor on October 31st, 2014 Our Rating: :: ALONE IN THE DARKUniversal App - Designed for iPhone and iPad Solid shooting and a surprising amount of spooky tension make Monster Flash a great portable... | Read more »
Retry Review
Retry Review By Rob Thomas on October 31st, 2014 Our Rating: :: SOARING HIGHUniversal App - Designed for iPhone and iPad Flappy who? Let Retry wash all those bad bird-related memories away on a cool retro-flavored flight… right... | Read more »
Dementia: Book of the Dead Review
Dementia: Book of the Dead Review By Lee Hamlet on October 31st, 2014 Our Rating: :: A TOUGH READUniversal App - Designed for iPhone and iPad A witch hunter is sent after a demonic book in the spooky but short-lived Dementia: Book... | Read more »
Card Dungeon, the Semi-Board Game Roguel...
Card Dungeon, the Semi-Board Game Roguelike, Has Been Renovated Posted by Jessica Fisher on October 31st, 2014 [ permalink ] | Read more »
Logitech Protection + Power iPhone5/5S C...
Made by: Logitech Price: $99.99 Hardware/iOS Integration Rating: 3 out of 5 stars Usability Rating: 0.5 out of 5 stars Reuse Value Rating: 0.75 out of 5 stars Build Quality Rating: 0.75 out of 5 stars Overall Rating: 1.25 out of 5 stars | Read more »
This Is Not a Test Goes Free, Permanentl...
This Is Not a Test Goes Free, Permanently Posted by Jessica Fisher on October 31st, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Swap Heroes Review
Swap Heroes Review By Campbell Bird on October 31st, 2014 Our Rating: :: STRATEGIC SWAPPINGUniversal App - Designed for iPhone and iPad Rotate a cast of heroes to fend of waves of monsters in this difficult, puzzle rpg.   | Read more »
Night Sky Pro™ (Reference)
Night Sky Pro™ 3.0.1 Device: iOS Universal Category: Reference Price: $2.99, Version: 3.0.1 (iTunes) Description: Night Sky Pro™Wonder No More™ Night Sky Pro™ is the ultimate stargazing experience. From the creators of the original... | Read more »
Audio Defence : Zombie Arena (Games)
Audio Defence : Zombie Arena 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: A zombie shooter audio game. Made from gut-wrenching 3D binaural sound, for a new kind of weird immersion. You... | Read more »
RPG Asdivine Hearts (Games)
RPG Asdivine Hearts 1.1.0 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1.0 (iTunes) Description: SPECIAL PRICE50% OFF (USD 7.99 -> USD 3.99)!!! Travel alongside four companions and a cat in the adventure of a... | Read more »

Price Scanner via MacPrices.net

Tablets Ascendent Again; Global Tablet Market...
The worldwide tablet grew 11.5% year over year in the third quarter of 2014 (3Q14) with shipments reaching 53.8 million units according to preliminary data from the International Data Corporation (... Read more
Apple now offering refurbished 2014 13-inch R...
The Apple Store is now offering Apple Certified Refurbished 2014 13″ Retina MacBook Pros for up to $270 off the cost of new models. An Apple one-year warranty is included with each model, and... Read more
Apple Regains Momentum As Windows Stutters An...
The latest smartphone sales data from Kantar Worldpanel ComTech, for the three months to March 2014, shows Apple performing strongly in the first quarter of the year, with sales bouncing back in... Read more
Worldwide Smartphone Shipments Increase 25.2%...
New smartphone releases and an increased emphasis on emerging markets drove global smartphone shipments above 300 million units for the second consecutive quarter, according to preliminary data from... Read more
Apple now offering refurbished 2014 15-inch M...
The Apple Store is now offering Apple Certified Refurbished 2014 15″ Retina MacBook Pros for up to $400 off the cost of new models. An Apple one-year warranty is included with each model, and... Read more
Apple drops prices on refurbished 2013 Retina...
The Apple Store has dropped prices on 2013 Apple Certified Refurbished 13″ and 15″ Retina MacBook Pros, with Retina models now available starting at $999. Apple’s one-year warranty is standard, and... Read more
New 2.8GHz Mac mini on sale for $949, save $5...
Abt Electronics has the new 2.8GHz Mac mini in stock and on sale for $949.05 including free shipping. Their price is $50 off MSRP, and it’s the lowest price available for this model from any reseller... Read more
Sale! 3.7GHz Quad Core Mac Pro available for...
 B&H Photo has the 3.7GHz Quad Core Mac Pro on sale for $2649 including free shipping plus NY sales tax only. Their price is $350 off MSRP, and it’s the lowest price for this model from any... Read more
Mujjo Steps Up The Game With Refined Touchscr...
Netherlands based Mujjo have just launched their Refined Touchscreen Gloves, stepping up their game. The gloves feature a updated elegant design that takes these knitted gloves to the next level. A... Read more
Sale! Preorder the new 27-inch 5K iMac for $2...
 Abt Electronics has the new 27″ 3.5GHz 5K iMac on sale and available for preorder for $2374.05 including free shipping. Their price is $125 off MSRP, and it’s the lowest price available for this... Read more

Jobs Board

Position Opening at *Apple* - Apple (United...
…Summary** As a Specialist, you help create the energy and excitement around Apple products, providing the right solutions and getting products into customers' hands. You Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** Being a Business Manager at an Apple Store means you're the catalyst for businesses to discover and leverage the power, ease, and flexibility of Apple Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** As more and more people discover Apple , they visit our stores seeking ways to incorporate our products into their lives. It's your job, as a Store Read more
Position Opening at *Apple* - Apple (United...
**Job Summary** At the Apple Store, you connect business professionals and entrepreneurs with the tools they need in order to put Apple solutions to work in their Read more
Solutions Specialist with *Apple* Knowledge...
Company Description: We are an Apple Authorized Sales and Service Provider. We have been selling and servicing Apple computers in the Fairfield County area for over Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.