Home Media Magazine Report: Movie Downloads a Tough Sell

[TheDaddy]

Home Media Magazine Report: Movie Downloads a Tough Sell

http://www.homemediamagazine.com/index.cfm

Report: Movie Downloads a Tough Sell
Author: ERIK GRUENWEDEL
egruenwedel@questex.com
Posted: March 3, 2008

Unlike short-form videos and user-generated content, the nascent market for downloading feature-length movies via Apple TV, Amazon’s Unbox, Movielink and Vudu, among others, appears to be nearly non-existent, according to a new report.

A survey of 1,975 broadband users found that fewer than 9.5% regularly downloaded movies from the Internet onto their personal computers, according to The Diffusion Group.

The Dallas-based research firm found that nearly 54% of respondents were completely unfamiliar with movie downloads and 37% were aware of movie downloads but had not downloaded them.

Delivering movies to the cell phone is not considered “sufficiently desirable” for investors looking to get into the online movie distribution, according to the report.

The report found that delivery and quality of movie content from the Internet to the TV is key to market penetration and acceptance.

In addition, just 28% of respondents considered customization and interactivity of broadband-enabled video important, compared to more than 42% who considered it unimportant.

“Online movie download services should focus first on developing a strong library of content,” said the report. “When it comes to movie rentals and purchases, the quality of content matters.”

Failure to deliver movies to the TV coupled with consumer indifference contributed to Wal-Mart shuttering its movie download service late last year. Both Google Inc. and AOL scaled back video download services as well.

Bankrupt Movie Gallery Inc. terminated its Moviebeam service less than a year after acquiring it for $10 million.

Arvind Bhatia, media analyst with Sterne Agee in Dallas, said at the time the closures underscored the reality that movie downloads didn’t make economic sense.

“People still like to browse in person,” Bhatia said. “Stores are still relevant, DVD by mail is still relevant and kiosks are becoming more relevant.”

He said it signals a “thumbs up” for packaged media at least in the near term.

“The comfort level and technology [for movie downloads] are not there yet,” Bhatia said.

[hc666]

Tough sell to me I know...

No way I will ever do this. Twenty some bucks to own something virtually with crappy audio and no extras... no thanks.

[BluRayExplosion]

Not to mention having to spend ridiculous amounts of money on storage. Plus unless you have fiber optic internet, good luck.

[mystiksuicide]

If I am paying for it I won't a disc. I have absolutely no interest in downloading.

[Blu Titan]

I am NOT nor will I be interested in dowloading films. Maybe to rent, but not as ownership of the material. Toshiba and some of the red supporters are just bitter about the situation. However, I have noticed that most of the HD DVd owners (from what I have read) are willing to adopt Blu-ray.

[Yugh]

Digital download will always be trying to be the next format of choice but sadly its not even on par with Hd-dud.

[HDJK]

Originally Posted by mystiksuicide

If I am paying for it I won't a disc. I have absolutely no interest in downloading.

Same here.
I'm not surprised by that survey at all. It worked for music; people can take music anywhere. But movies are for your home, and most people want some quality for their Big screen TV.

[allanmejia]

it defeats the purpose of me having a 52" 1080p HDTV, why would i want to get a low quality video/audio download??

for portable devices it may make sence, not for home video industry!!!

[The Don]

ya think?....this is not music....movies are a whole different animal..

[hc666]

And how does insurance work with downloads?

Yeah you spend say 500 bucks on movies you download, you lose the storage device... call Insurance company and say your drive crashed... i don't think they will quite get it.

[Bobby Henderson]

I think customers are always going to want to have a copy of any movie they buy on physical media. More value-added content can be stored on the disc. And the disc's packaging can have a lot of extra value too.

Perhaps when average Internet connections in the United States are much faster (in about 7 to 10 years maybe) then lots of people may consider renting movies via download services. But that's only going to work if they can get audio/video quality equal to what's available on Blu-ray AND only if they can download it in real time. Waiting hours upon hours for a bunch of gigs of data to download is simply not going to work.

Too many idiot business people involved in promoting the idea of movie downloading are showing they just don't understand technology very well. They also don't understand the differences between why it's popular to download music, but not movies.

Music can be portable. It can be enjoyed anywhere. It often functions in the background while you do other things, like work or go jogging, etc.

Movies don't really work that way. People prefer to watch movies in a controlled setting and on as big a screen as possible. That type of entertainment works in an entirely different context from music. Again, so many business people simply don't understand that.

[JTK]

If HD-DVD had won Warner exclusivity, to say nothing about if it had won the format war, we would not have seen or heard ne'er a peep about digital downloads like we have since around November.

[MatrixS2000]

Originally Posted by hc666

And how does insurance work with downloads?

Yeah you spend say 500 bucks on movies you download, you lose the storage device... call Insurance company and say your drive crashed... i don't think they will quite get it.

Simple, they replace the hardware...only!

[dialog_gvf]

Originally Posted by JTK

If HD-DVD had won Warner exclusivity, to say nothing about if it had won the format war, we would not have seen or heard ne'er a peep about digital downloads like we have since around November.

Yeah. Funny how the rules changed when the chosen format lost.

There seems to be good money in being a Microsoft agenda pusher.

Gary

[Elandyll]

People pushing for DL will have to realize that it's a "Fast Food" use of Media mentality, at least the way it is now and for the foreseable future.

It's a low quality, low value, "good enough" satisfaction, with emphasis on practicality product.
It's a grab, consume and forget type of media, that might one day replace rentals alltogether. One day. Personally I do also like the trip to the videostore once in a while, looking at jackets, talking to a human being and having recommendations... But Netflix and Itunes are nice too, let's be honest.

But the day people will be fine in having a second rate product, that is pay as you go for each viewing, that you cannot own (cue memories of Divx), and with no physical support / bonuses / deluxe version with physical pamphlet/ booklet possible, is still far away.

And I'm not even tackling the state of digital download technicalities in the majority of the countries (even inside the US for 70%+ of the people).

Physical formats still have nice days in front of them, Blu Ray of course, but maybe even one or more formats after it.

Personally, I despise the idea that I could depend on one giant corporation (or two) distributing the catalogue of films they deem worthy (aka brings money in and thus pays for its own storage space) versus the ones they think is a waste of storage. It'll be hard to exchange old films on ebay once we go all digital, but as long as the support is backward compatible toward DVD (like Blu Ray is), we have the best of both worlds.

In the end, VOD will only go so far, at least for the next 10-15 years, mark my words.

[richteer]

Most people would consider me an übergeek. There's no fscking way I'd even consider movie downloads, especially for high def. I want something tangible I own and is portable, with better PQ and AQ than will ever be seen on full length movie downloads.

[dobyblue]

The only people that think Digital Downloads has any sort of future within the next several years are the people that are:

a) being paid to have that opinion (Enderle)
b) hoping you will pay them for that service

Everyone else appears to have a brain.

[ps3andlovinit]

Originally Posted by dialog_gvf

Yeah. Funny how the rules changed when the chosen format lost.

There seems to be good money in being a Microsoft agenda pusher.

Gary

Ha ha. Your just a paranoid conspiracy theorist.

Cha-ching!

[pro-bassoonist]

I have zero interest in downloading films. The cinema I like belongs in my collection. On a disc!!

Dr.A

[UTVOL06]

Originally Posted by BlueNeon

I am NOT nor will I be interested in dowloading films. Maybe to rent, but not as ownership of the material. Toshiba and some of the red supporters are just bitter about the situation. However, I have noticed that most of the HD DVd owners (from what I have read) are willing to adopt Blu-ray.

I agree...however..if we were to have the technology to download full length Blu-ray movies with absolute Zero quality loss from the hard copy version in a timely manner I would consider doing so.

I don't see downloading movies desirable until they offer full quality movies with 0 compression and 30Mbps internet connections are widespread in the US.

Still what's so hard about going out and buying a hard copy that costs the same? I guess America is getting more lazy as time goes on.