“At a Goldman Sachs investor conference yesterday, Disney CEO Robert Iger reported that Disney sold 125,000 movie downloads through Apple’s iTunes Store in less than a week, accounting for more than a million dollars in revenue. He further noted that he expects this trend to continue with Disney capturing more than $50 million in revenue from movie downloads in the first year,” Principal Analyst Carl Howe writes for Blackfriars’ Marketing.
“This result is nothing short of remarkable. Remember, that the iTunes Store launched movies with fewer than 75 titles from Disney properties. No loss leaders were offered; every single one of these movies was paid for at prices ranging from $9.99 to $14.99. And while Disney and Apple will share those revenues in some undisclosed split, because this is digital distribution, Disney’s share of that $50 million will largely show up as profit on its income statement,” Howe writes.
What does this mean for movie studios? It means they should:
• Sign with Apple soon or miss out on the movie downloading profit stream
• Stop holding out for variable pricing of movies
“What does this mean for Apple’s competitors? It means that just as in music, Apple is demonstrating that a working system, a compelling store, and a simple business model is a far more powerful business proposition than promises of software, untried stores, and perfect profit optimization,” Howe writes. “If the first week is any indication, Apple may see similar success — and dominance — with movies.”
Full article here.
Related article:
Disney sells 125,000 movie downloads via Apple’s iTunes Store in first week – September 19, 2006
Make it happen internationally and see those numbers climb…
They are the ones who change the world…
All aboard the iTunes Train!
Come on Amazon… how many have you sold?
Amazon probably has done only $125,000 in Unbox sales, much less 125,000 movies sold.
‘Apple may see similar success — and dominance — with movies’
What a surpise?! We could see this coming already for some time. Incredible that the movie studio’s don’t see this either!
It’s a no brainer decision for the movie studios. Get in on the deal, or lose out. The sooner the better, because soon there will be thousands of titles available instead of several dozen.
Currently, Apple’s competion is Amazon. Once iTV is released, the only competition left will be DVD rental and sales companies.
Hey MDN, plz take the Ad off the right side of the comment box. Ptuuueeey
So they got a few curious people to download a movie out of curiosity. The second and third week will be more telling, and I suspect the other labels will be watching these numbers. Heck, it may take some time before an established pattern emerges.
Right on Daner. Looking forward to getting some TV and movie action up here in Canada. I’m slowly getting tired of watching all my Pixar shorts.
Hey MDN, plz take the Ad off the right side of the comment box. Ptuuueeey
They won’t, use Safari block to block certain ads, turn off Javascript to stop the pop under, learn to edit your /etc/hosts file to deny your computer from contacting ad servers.
To stop the roll over pop-up ads add
0.0.0.0 macdailynews.us.intellitxt.com
To the bottom of your /etc/hosts file.
sudo pico /etc/hosts
arrow down to the bottom
add 0.0.0.0 macdailynews.us.intellitxt.com
control x, y and return.
Reload MDN.
Lot’s of work to make this site habitable, but a great trainer.
First will come the petulant stamping of feet and puerile whining, but then they will line up and sign up — at the iTunes store.
Disney made $1.5 million in the first week?
(125,000 x $12) $12 being average price
The others will be on board in a hurry
where are they getting $50 million?
125,000 x $15 (assuming ALL movies were the $14.99 version is only $1.875 million
am i missing something
MacCracker:
Thanks for the tip. I’ve already got an Ad blocker, can’t remember the name right now. It’s on my home Mac. I’m at a CompUSA right now and your comment reminded me that I haven’t seen that Ad at home ’cause I’ve already blocked it. LOL
I’t’s funny how you forget what used to clutter up your online life. I once tried to help a client clear her husband’s PC of some pop ups. What a nighmare! Couldn’t help her. I’d completely forgotten how bad they were.
ok, nevermind, they said $50 mil in the first year
that maths works.
of the $12.99 dload, how much is disneys? maybe $10?
Watch the numbers as Apple & Disney continue to roll out content. If the numbers are good, the rest will follow. There is no higher loyalty in the business world than to someone/something that has proven that it can make money.
maths:
125,000 x $15 (assuming ALL movies were the $14.99 version is only $1.875 million
x 52 weeks (a year) = $97,000,00 in a year, using your calculation, if movies continue to sell at that rate.
Disney’s remarkable 1st week iTunes movies sales should have studios clambering aboard Apple train
Should, but most likely won’t.
You see Steve Jobs isn’t as neutral with the movie studios as he was with the record labels, being the largest shareholder of Disney doesn’t help.
Also the record labels were pretty desperate when Steve approached them with iTunes, they thought Steve and his -3% market share of Mac’s would be a interesting experiment. Little did they know Steve would jump platforms and take over 75% of the market.
You see the Labels don’t like it when any one company gets too powerful, they certainly don’t like Walmart lowbaling them and now Steve Jobs denying them free reign for song purchase prices.
So as all this drama was going on, the movie industry just stood by and watched.
Amazon.com got the studio’s onboard with the promise it won’t affect the DVD download buisness, Steve Jobs got Disney only because he’s the majority shareholder.
Netflix beats iTMS and Amazon for movies everyday.
Clambering aboard?
clam‧ber‧ing
–adjective Botany
of or pertaining to plants that creep or climb like vines, but without benefit of tendrils.
or
v. clam·ored, clam·or·ing, clam·ors
v. intr.
To make a loud sustained noise or outcry.
To make insistent demands or complaints: clamored for tax reform
or perhaps, climbing
v. climbed, climb·ing, climbs
v. tr.
To move upward on or mount, especially by using the hands and feet or the feet alone; ascend: climb a mountain; climbed the stairs.
To grow in an upward direction on or over: ivy climbing the walls.
Ampar,
The built-in dictionary in Mac OS X is not the only dictionary in the world.
Clamber: climb awkwardly, as if by scrambling
http://wordnet.princeton.edu/perl/webwn?s=clamber
I still think the price is way too high. The production and distribution costs are a fraction of a DVD costs so why isn’t the price like 6$ a movie? Greedy ba…rds!
sounds like ampar has definitely way too much time on his hands
You can assume that Disney gets $8 per movie. $1 million revenue / 125000 downloads = $8 per download.
And there is variable pricing because there are more than one price, and new releases will have different prices. So I don’t see how that could be a hold up.