“Starz Entertainment Group is introducing a $9.95-a-month subscription service that will allow people to download movies from the Internet and watch them on their computers, portable video players and television sets,” Saul Hansell reports for The New York Times. “The new offering, called Vongo, comes at a time when movie studios and television networks are rapidly expanding their efforts to distribute their content over the Internet, experimenting with both paid and advertiser-supported models.”
“Since 2004, Starz has offered a movie download subscription service, called Starz Ticket, using technology from RealNetworks. But the RealNetworks software does not allow movies to be downloaded to hand-held devices. With Vongo, Starz will shift to technology from Microsoft that will allow movies to be downloaded and watched on portable video players using Microsoft’s software,” Hansell reports. “… Of course, interest in portable video has soared with the Apple Computer video iPod, and the popularity of $1.99 episodes of TV shows sold at the iTunes online store. Microsoft will promote the Vongo service in a coming release of its Media Player software. Separately, Starz will also offer Vongo through Sony’s Connect download service. Until now, Connect has mainly sold music, but executives involved with Sony’s plans say that this week the company will announce an expansion to video downloads as well. Starz, which is offering a test version of the service at Vongo.com, has so far not been able to work out an arrangement for Vongo to run on iPods. This is a significant problem, said Josh Bernoff, an analyst with Forrester Research. The Microsoft Portable Media Center devices ‘have not done particularly well so far,’ he said. ‘They don’t have the momentum that the iPod does.'”
“Apple is expected to offer some sort of expanded video offering at the MacWorld conference in San Francisco next week. While Apple is closed-mouthed about its plans, there is considerable speculation among industry analysts that Apple will introduce a device that will let people watch video from the Internet on their TV sets,” Hansell reports. “So far, however, Apple has not offered any subscription services for digital content (subscription services use technology that disables the music or video files on users’ PC’s and devices if they stop paying their monthly subscription bill). Indeed, Apple’s chief executive, Steven P. Jobs, has been outspoken in his belief that consumers want to own rather than rent what they listen to and watch. As a subscription service, Vongo will allow users to download as many movies as they want for $9.95 a month. They will be able to choose from an ever-changing roster of about 800 movies, including about 300 films in rotation on the Starz cable channel (mainly movies released in theaters one to three years earlier) and 500 older titles.”
Full article here.
[Thanks to MacDailyNews reader “matt” for sending us the link via our contact page.]
The iPod compatibility factor cannot be overstated. Forrester’s Bernoff nabs the early lead for the 2006 “Understatement of the Year” award by describing Vongo’s iPod-incompatibility as “a significant problem.” It’s a “deal killer,” of course. Lukewarm success is about the most that these limited Microsoft-based, Windows-only, iPod-incompatible services can hope to achieve. iPod is the key. People own iPods and they want content that works with their iPods. It’s as simple as that. Seven days until Macworld Expo…
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Vongo–Pongo
The thing that annoys me about MDN alway putting emfasis on the iPod incompatibility is the fact that it’s not their fault if they can’t offer service for the iPod, it’s Apple’s. Apple doesn’t let anyone else (or not alot anyways) use their DRM.
What the fsck is “emfasis” and are you actually trying to make a point after writing “emfasis?” If so, I’m laughing.
iPod is key. Apple shouldn’t let Vongo, Bongo, Pongo, or any other “Ongo” have the keys to the iPod that Apple created. iTunes will have it all and more quite soon and Apple will do it right, too.
Gates and Baldmore aren’t gong to steal this one!
“The thing that annoys me about MDN alway putting emfasis on the iPod incompatibility is the fact that it’s not their fault if they can’t offer service for the iPod, it’s Apple’s.”
You miss the point. MDN is saying it has a higher chance of failure or stagnation because of iPod incompatibility. I don’t think MDN is pointing out the incompatibility to place blame on who is responsible for why it won’t work with the iPod.
Also, if you are looking for root causes, why do you stop at Apple? Why not go right to the source of the problem?
Apple was the early adopter – the big guys are now entering the field, slowly but surely – Microsoft, Google, Yahoo and more. Apple had it easy while it had little competition.
But Microsoft does what it always does – waits until the others discover the great new idea, work out the kinks and then Microsoft steam rolls over the competition with its huge bank roll and computer monopoly.
Now that all the computer manufacturers will all be using the same Intel chips, Apple is just another one of them…offering the same thing (but at probably a higher price).
I wish Apple well, but with the new Intel chips soon everyone can offer watch movies from your computer only (or Microsoft´s case the Xbox)via a subscription service.
And eventually this will give way to ad based watching that is basically free.
I have a longo dongo
Although Apple is keeping other out of the iPod kingdom keep in mind 2 simple points.
1. Before it is iPod incompatibile it is Mac incompatiblie. I for one find this very irritating before I want to watch on my iPod I want ot watch it on my mac so until MS makes thier DRM work on the mac I have no problem with Apple giving a big screw you to the windows only services.
2. There is no reason why the media files they are using shouldn’t play on the iPod. The codec is freely available for anyone ot use. What isn’t available is the DRM that Apple has developed. Give me the file sans the DRM and magically they have a totally cross plateform (Win, OSX, Linux) solution. It is the DRM that isn’t crossplateform. At this point hte only company with a cross plateform DRM (sans Linux) is Apple.
too bad it depends on Windows. soon tv sets will be catching viruses.
the MDN Take is the kind of arrogance that gets companies in trouble. If the Japanese thought this way there wouldn’t be any Toyota cars in states now. Come to think of it, if Microsoft thought this way, there wouldn’t be any Windows OS. It was Apple arrogance in the 1980s that cost them the OS wars. Let’s hope Apple learns from its past mistakes.
I don’t pay monthly for anything, that is why I cancelled my X-box live subscription. LAME. I want music and video when I want it for a price not a subscription. The day iTunes turns to subscription only is the day I head back to the music store.
Vongo.com – “Vongo is currently PC based, but will soon be Mac compatible (really!).”
Diamond,
You pissed that Apple won’t let you sell your service to Apple’s iPod customers?
Read Forester’s research. Apple is the only one doing it right. All other venders are doing it wrong.
“Vongo is currently PC based, but will soon be Mac compatible (really!).”
Yeah, when Apple starts using the Intel chips that every other computer company will also use….
There is no doubt that video is the one service that works better with subscription.
You watch the same movie, what, 2 to 3 times max in a lifetime. There are 5 or 6 exceptions to this rule but there are also movies you watch only once, if you can sit through that one time to the bitter end.
Apple’s new video service that we will hear about in ‘The Keynote’ will probably be a subscription service and it will be big.
apple isn’t the early adopter. they offer little tv clips. there is no movie service.
Regarding the downloading of movies; in what way is any company, Apple included, likely to overcome the prohibitive cost of very large total monthly bandwidth consumption if many movies are downloaded during any given ISP billing cycle? Here in Montreal, a broadband cable connection with no usage caps currently costs over seventy dollars a month.
btw, here’s how Vongo.com displays in Montreal:
Vongo. Choose Now. Watch Now.
Geographic Failure.
You need to be in the United States to view this site.
Our system check has indicated that your IP address is coming from outside the U.S.
Vongo is not available outside the U.S.
Minimum System Requirements
Located in the US
I have to disagree Big Al, it’s like the Netflix concept. You are paying for a monthly service that you will use only a fraction of the time. For most of America, those who work, you get up and attend your work session from at a minimum 8 hours a day. If you have an important job you probably spend more like 10 or 12 hours. That leaves you with 6-7 hours of sleep. So lets see about 16 hours of your day is spent, and now lets just say you get up at 7 got to work at 9 finish that at 6 pm. Then get home by 7ish, you eat dinner then between 8 and 12 is your time, that being pretty generous. What will you do with your four hours. Play video games, interact with your kids (if you have them), do work at home, or pay attention to your girlfriend/wife. Well I think I wouldn’t be spending that time watching my monthly service of movies. That is why pay per view is still around. You pay for it when you want it. I don’t watch half the crap, and I do mean crap that is out there. I want to see a select few movies, or shows, pay for them and watch them whenever I want to.
The thing that annoys me about MDN is the emphasis on the iPod incompatibility is the fact that it’s not their fault if they can’t offer service for the iPod, it’s Apple’s. Apple doesn’t let anyone else use their DRM.
Totally Agree!
iPod incompatibility is a choice. They can liscense the use of the DRM/iPod platform by dealing through iTunes, which will eventually be the choice place for this type of medium if Apple fixes its issues with the lack of content. People dont want to shop everywhere to get things even if it is the internet. They want a one stop shop, I think wal-mart has proven this.
iPod incompatibility is a choice. They can license the use of the DRM/iPod platform by dealing through iTunes, which will eventually be the choice place for this type of medium if Apple fixes its issues with the lack of content. People dont want to shop everywhere to get things even if it is the internet. They want a one stop shop, I think wal-mart has proven this.
to those that don’t think that this model can be successful (movie subsciption)–> I think NetFlix has proven that. digital is the next step
Of course it’s iPod incompatible! This is Microsofts move to counter Apple (this time actually ahead of the game [though probably just one week])
The two big problems that Apple has that no one seems to realize are.
1. Its reluctance to use a subscription based formula (for movies, this is a big deal (NETFLIX and all the NetFlix copycats))
2. (most important/overlooked) How is Apple going to update the resolution on it current video offerings? For one, Apple doesn’t like offering a choice (makes it too complicated–>music store quality has never been changed). And second, new iPod models are going to be coming out capable of displaying more than their current setup. What do they do????
Until these companies force MS to make their DRM available to mac users Apple would be mad to let them in on theirs. Do they put such pressure on MS. I doubt it. Will MS listen I doubt it eveen more until Apple controls enough of the market in various ways to make it vital they do so to keep in the game. Please people get serious before you slag off Apple for keeping hold of its DRM we are living in the real world here. Until then and indeed YOU, are just hypocrits.
I really hope Apple avoids the subscription model for videos/movies. I watch maybe 4 movies a year. I would be glad to buy/rent them as needed but there’s no way I’m going to subscribe to something like NetFlix et al.
Anything that can be seen or hear can be recorded for the iPod.
If it’s streaming off the internet use SnapZ ProX to record it into a Quicktime Pro movie which “Export” into iPod format.
If it’s a DVD, rip it with Handbrake directly into iPod format, even changing the aspect ratio for maximum screen image.
http://macteens.com/index.php/features/fullstory/putting_dvds_onto_your_ipod/
Nothing like a video iPod full of thousands of movies.
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