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After I buy a $300 device, I can rent Fox movies only - paying $x per movie and have them to watch for a limited time. I already have a selection of various studio's movie available with these same restrictions via my XBox 360. Not sure what the big difference is here. And I'm a big Mac fan.

Edward R Murrow

The only thing that semi-sucks about this is that the rental is available as a limited time.

What would be cool is if Apple did rental plans the way that BBO and NFLX do, so many out at a time.

I'm thinking that the platform independence that Apple can potentially offer is dope. iPod, iPhone, AppleTV, iTunes, etc.

BBI will always have the B&M while NFLX will only have the online. We should all be able to see the writing on the wall now and NFLX will finally have to compete with a real online, high tech presence in Apple.

NFLX was definitely in the right place at the right time the last few years with DVD rentals by mail. NFLX is now in the wrong place at the wrong time because they appear to be where Apple wants to be.


Further reading:

Jason Hansen

I'm hoping the Netflix Watch Now feature will come to the Xbox 360. Do you have any ideas on what the would use if not through a gaming console?


Now, it might be something to think about if Netflix and Apple could get together to deliver media via the Apple TV device.

Netflix has the better content provider relationships and Apple has a device ready to utilize.

I thought I had heard back some years ago a relationship that was buidling between Netflix and Tivo. That must have fallen through, though, since Tivo partnered with Amazon.


"NFLX is now in the wrong place at the wrong time because they appear to be where Apple wants to be."

Yeah it sucks when your #1 competitor gives up. That's a bad place to be.

Apple has been a competitor for multiple years. So have a host of download to rent/own, VOD, online subscription, free ad supported players. The list is endless. No one entity, not even apple, will get to own this market. Not being attached to home video window is a tough mountain to climb for massing content. If NF is in the wrong place then so is everyone else.

Edward R Murrow

I'll slow down a bit for you - with NFLX being primarily DVD by mail, they appear to be in the wrong place at the wrong time. It looks like Apple will be turning up the heat with download rentals onto potentially multiple platforms.


So after I buy my 1080p 60 inch TV, Apple expects me to watch the latest blockbusters on this crummy AppleTV format? This is like launching a new basketball team with players under 5 feet tall and expecting it to compete against the Celtics.

Edward R Murrow

AppleTV specs look pretty good to me:

Take a look at the "Port and Interfaces" and "TV compatability" sections .


Netflix continues to be the lowest cost provider and seems to be improving on that position. Now that BBO is retreating Netflix will be higher caliber to try and stave off Apple just like it has sucessfully done with Walmart, Amazon, and Blockbuster. isnt it time to start giving Netflix some credit?


If you slow it down anymore you'll come to a complete stop. You either don't get it or don't want to. So yes it appears to you that NF is in the wrong place at the wrong time. Apple can't wave a magic wand and get to own the TV and DVD player across America. It's a monumental task that not even the MSOs have gotten right even after having been in the house for 30 years.


Does anyone think that Apple will be able to compete with the content that Netflix offers?

I also wonder if they will continue to charge for each download, or if there will be a monthly membership.

If they can compete with the DVD market in content and have a reasonable monthly plan, I may just become a AppleTVJunkie.

Alan Smithee

If you've been keeping up with Netflix's analyst meetings then you'll know they will pilot their set top box in 2008.

It amazes me, how Sony, a company that is one of the big movie studios, has completely missed the boat on downloadable movies (and music, for that matter), despite having a portable device for it (the PSP) and a setup box with a big hard drive (the PS3).


"...with NFLX being primarily DVD by mail, they appear to be in the wrong place at the wrong time."

You seem to be make some serious assumptions about what Netflix is planning, what Apple will execute, what the selection will be like, what the price will be set at, what public adoption will be, etc.

Also, as someone pointed out, Netflix may have plans as they've said so in their conference calls. Then again, not everything said in a conference call comes to pass so we'll have to wait and see.

if the price points and 24-hour limit being reported by Variety are correct, the Apple rental service will be targeting someone besides the Netflix/Blockbuster customer base (the success lies in the cheap subscription model, not just the ease of use):

"Apple's two major studio partners could be joined by other distribs, perhaps Paramount, Lionsgate and MGM, which already make library titles available for purchase on iTunes. Rentals are expected to cost between $2 and $5 for a 24-hour period, with the price point ideally motivating consumers in the manner of 99ยข music downloads."


Apple's deal is vastly overrated in terms of market reaction.

The current Apple TV is a problem because it requires syncing to a PC. If I have to have a pc and a box plugged into tv, plus internet and wireless infrastructure, all to replace a DVD player, I'm not sold. Not to mention the limited catalog and likely pricing schemes.

The fact is that video works very differently from music. Assuming Apple's music dominance with ipod/itunes/itunes store extends automatically to video ignores that very different ways in which these media are used. Music is smaller in size, is kept generally in large collections and is constantly re-used. A number of pricing schemes have been tried with online music sales and the single price per song model has proven to be most effective for music buying habits, which of course makes logical sense. The labels in particular, though, have been fond of pushing a subscription model for music, which is all about their copyright b/s and drm rather than what the consumer wants.

Ironically it is the subscription model which works best for video, see: Netflix's success and BB Total Access. It's nice to rent one movie when you want to watch it, for $X, in the convenience of your own home. This is what's been known for years as Pay Per View. Comcast and other cable/tv providers have it in the form of "On Demand." Your typical hotel room has this service as well, provided by Lodgenet and others. Apple's offering will be essentially another version of this, only it requires you to buy a box for it. The box will not be cheap, either, but may have value-add features.

Most of the current video on demand customers are unfortunately for Apple already cable subscribers with access to On Demand pay per view. If I was able to replace my cable and cable box with an Apple TV type device I would do so, excepting one thing: The pricing scheme of pay per view.

I have cable and i have a SUBSCRIPTION model. It has worked for 30 years for a reason.

Netflix is VERY well positioned against Apple's moves in this space. Watch for Macworld in two/three weeks where I expect Apple to unveil a new Apple TV device that, if they are smart, is essentially a Mac Mini and has stand-alone ability for VOD and other stuff. The key here is that if you're spending $400/500 on a tv-box it had better not rely on another machine to stream to it.

That said, Netflix has hinted at their set-top box direction. XBOX 360 seems obvious, that will get them a few million potential customers immediately for their Watch Instantly. But less noticed is the hint that they would be in HD DVD players. This is HUUUGE. HD DVD players already have ethernet ports and internet functionality. They are run on a form of linux so they are basically little computers. They play and upscale DVD's and are designed for all the new HD TV's that people have with nothing to watch on them.

If Netflix has teamed up with Toshiba and offers a $300/400 (possibly less) HD DVD player with Netflix co-branding and Watch Instantly access they are immediately a threat to Apple. The real issue will continue to be CONTENT.

If you haven't noticed, there's no new content on tv because of something called a Writer's Strike. They are fighting over revenue for ONLINE. The reason Apple, Netflix and others have had trouble increasing content is this contract and the others coming up this year. The studio's need to know how much they are paying out in royalties to the creative side before they can set contracts with Netflix, et al. These issues are basically on the cusp of being settled and the end of the Writer's Strike should lead to a massive amount of new online content deals, most of which are probably already largely negotiated and just waiting for some revised figures and ink.

Edward R Murrow

"If I have to have a pc and a box plugged into tv, plus internet and wireless infrastructure, all to replace a DVD player, I'm not sold."

Not entirely accurate. I could rent the movie using iTunes, synch it to my video iPod, physically carry the iPod to the big screen then use Composite or Component video cables. Check out the "Composite and Component AV Cables" section on the page below.

While the XBox could get to a few million customers, using the iPod in this way gets to 100 million customers.


100 million people do NOT have an ipod that can do that and truthfully 75% of the people who do have them can't be bothered/don't know how to use cables and all that. It's a paradigm they can't get their head around.

Consider that a computer, laptop's in particular, connects perfectly well to a tv, even hdtv's. I use netflix watch instantly in that way already. Why doesn't everyone else? Try showing a neophyte how to use a/v cables some time and then answer the question yourself.

To succeed you need a product that is like a dvd player. That's it, no bones about it. Plug it in, turn it on, watch stuff. Without that ease of use you're being destroyed by cable boxes and dvd players.


i see that COMCAST is charging $4.99 for new releases on demand. i wonder how Apple iTunes would be able to get a wholesale rate to enable $2.99 rentals. i just dont see it.


"Try showing a neophyte how to use a/v cables some time and then answer the question yourself."

I can better that. Try to get ANYONE to read a manual.

wholesale dropshippers sources

i like having movies through itunes. it makes so easier to watch any movie.

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