“Walt Disney Chief Executive Robert Iger on Tuesday said the company sold 125,000 movie downloads worth $1 million in revenue through Apple Computer Inc’s iTunes online music store in the first week Disney movies were offered,” Gina Keating reports for Reuters.
“Iger told a conference of analysts the company expects to take in $50 million in added revenue during the first year of the iTunes movie download program, which was unveiled by Apple on Sept. 12,” Keating reports.
Keating reports, “Disney last week became the first movie studio to offer movie downloads through iTunes. The company placed 75 titles, such as ‘Pirates of the Caribbean: Curse of the Black Pearl’ and ‘National Treasure,’ on the Web site.”
Keating reports, “Iger said the number of films on iTunes would increase as Disney clears the broadcast rights to move them to the Web… Iger said Disney stood to benefit from further content sales through its Apple partnership when the computer company rolls out a device, code-named iTV, in the first quarter of 2007 that allows consumers to stream movies, music, photos, podcasts and TV shows from the Web to home media systems.”
Full article here.
See Disney movies via iTunes Store here.
[Thanks to MacDailyNews Reader “Kevin P.” for the heads up.]
You can bet all of the other studios just took notice of this news. Just wait until Apple’s “iTV” is available.
Steve Jobs gives sneak peek of Apple’s “iTV” wireless set-top box:
Related articles:
Newsweek: Apple and Google talks could result in ‘iTV’ menu item for Google Video – September 17, 2006
The most exciting feature of Apple’s ‘iTV’ may be its USB port – September 15, 2006
Cringely: How Apple plans to own your living room – September 15, 2006
LA Times: With iTV+iTunes Movies, Steve Jobs stumbles over the last 100 feet – September 14, 2006
BusinessWeek: If anyone can make bridge the great divide, Apple can with ‘iTV’ – September 14, 2006
The Beeb asks: Would you buy the Apple iTV? – September 14, 2006
Three markets that are different today after Apple’s ‘It’s Showtime’ event – September 13, 2006
Cramer: Apple’s ‘iTV’ all about ease-of-use; Apple shares are going higher – September 13, 2006
Apple + Living Room = Logical Marriage + Boon for Stockholders – September 13, 2006
The Register: Apple event more like ‘No Show’ than ‘Showtime’ – September 13, 2006
The Telegraph: Steve Jobs’ genius making people desire gadgets for which they have absolutely no use – September 13, 2006
The Guardian: Steve Jobs needs ‘a charisma download, Apple risks being left behind’ – September 13, 2006
Mark Cuban: Things that are special about Apple’s announcements – September 13, 2006
Apple’s ‘iTV’ strategy – September 13, 2006
How will Apple’s ‘iTV’ work? – September 13, 2006
Apple eyes living room market with device codenamed ‘iTV’ – September 12, 2006
Analyst: Apple ‘s iTunes+iPod+iTV model ‘the gold standard for the digital home of the future’ – September 12, 2006
Analyst: Apple ‘s iTunes+iPod+iTV ‘will be hard for other players to match’ – September 12, 2006
Apple gives sneak peek of ‘iTV’ set-top box to debut Q1 2007 (with images) – September 12, 2006
Apple’s QuickTime stream of Steve Jobs special event now live – September 12, 2006
NFL and Apple team up to offer 2006 NFL game highlights via iTunes Store – September 12, 2006
Apple debuts iTunes 7 – September 12, 2006
Sorry for the messed up link
Those who asked if movies can be burned to DVD.. the answer is Yes but in archival form. IE: archive to DVD as Data only. Meaning you can’t burn it as a DVD Movie.
See Apple’s Movies FAQ: http://docs.info.apple.com/article.html?artnum=304277
I don’t think selling 125,000 movies in a week is all that impressive considering iTunes sells over a MILLION SONGS A DAY.
*****************
You’re right. 125,000 movies in a week actually sucks for a first week where everyone is trying it out just for the hell of it.. I think iTv and more studios will help, but current sales appear to be pretty dismal regardless of what MDN thinks.
Not Very Impressed & RC:
considering the hardware/bandwidth requirements
the fact that it takes so long to download
the fact that this service is only available (at the moment) in the US
that one movie is 10 to 14 times the price of a single song
that only a very limited number of movies are (at the moment) available
…and that not everyone has downloaded iTunes 7 or is even aware of this new service yet!
then 125,000 (if not inflated) is pretty darn impressive!
125,000 movies in a week is not great compared to the numbers for iTunes music downloads. But they are two different things.
The success of iTunes music is all about convenience. There are obvious benefits to buying on CD, but a lot of customers think the convenience of iTunes outweighs the benefits of buying on CD. And the primary method of listening to iTunes music is iPod, the most popular portable media player in the world.
iTunes for movies does not currently have that advantage compared to buying on DVD. First, the benefits of buying on DVD are (1) noticeably better image quality, (2) alternate audio tracks and subtitles, (3) bonus features, and (4) the cheap DVD player next to TV. Additionally, (5) renting is more popular than buying in the video world (unlike music).
So for items:
(1) Quality – Apple can probably get away with not beating DVD in image quality, at least initially.
(2) Tracks/Subtitles – I don’t know how Apple can implement alternate tracks and subtitles, but it’s probably not a “deal-breaker” for most people if DVD does it better.
(3) Bonus features are important. Apple needs to offer web-based bonus features that are only accessible through iTunes, for movies that have been purchased through iTunes. Video features can be streaming, not downloads. Apple can make it’s bonus features better than the DVD versions, because there is no space limit on the web, and it can be updated with new content after the release of the DVD. Apple can give a choice of having access to the bonus features, or for a reduced price, just downloading the movie.
(4) Having the DVD player next to TV will be addressed by iTV. With the remote control, it will be more convenient than using DVD’s.
(5) Renting will need to be offered by Apple for movies. Since the days of VHS video, people tended to rent their movies not buy them. This is the opposite of music. So Apple does not need to beat Amazon, it needs to beat Netflix and Blockbuster. Ultimate, online rental should be more convenient than store-based or mail-based rental of physical media.
So over time, Apple can out-do the overall experience of movies on DVD. When that happens, Apple will start to really show some great numbers in the movie download business. Until then, the numbers will be good but not exceptional. The good news is that Apple is just getting started. The DVD-based experience is currently stagnant
@Mr Peabody
If you own a 5G iPod, all you need is a video cable to go between the iPod and the TV and voila, you can watch your movies on the TV.
Not at you, Peabody, but I wonder why ‘everybody’ in the media and on forums seem to be missing on this point. It’s great for TV shows especially.
The media boys and many on forums seem blinded by the “iTV”. I suppose that’s good for Apple, though: one more product sold on buzz.
Applecore – you are correct in stating the fact that iPods can show video content onto TV’s.
I have used this feature extensively for showing holiday pictures at parents houses, and video footage that I have taken myself. Although, parents prefer me to pass this footage as a DVD, so they can awe in wonder at my artistic ability in the creation of “professional” dvd’s. Ahem, thank you iMovie and iDVD themes – you should take the credit.
iTV appeals to me because of its permanence in connection to the TV, and also the fact that syncing to my iMac requires it just to be in wireless range (hopefully using th 802.11n standard for range and speed).
I love technology that is simple to use, and provides a “natural” way of acheiving something.
If I was to download a movie into iTunes on the iMac, then sync onto the ipod, then dig out the cables to hook up to the TV, it would be clunky to the point of thinking that buying a DVD was simpler, if not providing the instant gratification of watching what I want, almost when I want to watch it.
iTV will allow me to order a movie from the couch, and watch it on the couch, and gives me enough time to round up some drinks and snacks before it starts. The ability to show photo’s to parents on the home TV without the iPod will help, and having itunes streamed to TV (and controlled on) and home cinema system will mean I can loose the home stereo.
I hope this thing is launched in Jan 07 with UK dwnloads. But, christ alive, next quarter will be an expensive one (New flatscreen TV, new home cinema, iTV)!!
Amazon does not offer an end-to-end user experience with their unbox movies download system – so it is doomed to fail.
Apple offer a quick and intuitive way of instantly downloading and playing near dvd quality full length movies.
What Apple is doing is incredible AND more importantly exactly what customers want.
When the iTV box is launched very soon Apple will very quickly dominate the home entertainment space just like they have done with music downloads.
I bet all the movie studios not signed to itunes are looking at the figures that disney is selling and thinking ‘why the fuck did we not sign with apple when they launched this??’
I expect Steve Jobs is now having to que his calls because of all the movie companies wanting to sign on for this.
Disney are at the cutting edge of a new movie revolution – and they are gonna make shit loads of cash!
One thing I would like to add is:
Apple, please put a blue-ray dvd drive built into the iTV box!
Do this, and everyone can throw out their dvd players and we can just have one small box under the TV!
An Apple iTV box!
iTunes = mofo power, that is some impresive number!!
Thanks Dr Mcr – your point is well taken. I, also, will be getting the “iTV” for the very same reasons you mentioned.
I just hope there’s no “true iPod video” or tablet thingy that comes out near the same time, ’cause I’ll have to rent out my wife to make up the money.
nah! just kidding of course.
” width=”19″ height=”19″ alt=”wink” style=”border:0;” />
Half of ’em were a group [MW] of M$ staff trying to learn something.