“When movies shifted from videocassettes to DVD, retailers simply cleared the tapes off the shelves to make room for discs. That’s not so easy now that movies appear poised to follow music onto the Internet,” Joshua Freed reports for The Associated Press.
Freed reports, “The number of DVDs sold grew 5 percent last year, but that was down from a 9 percent increase during the previous year. Selling prices for both music and movies have declined. And NPD said DVD sales would have slid faster if not for the growth of TV programs offered on DVD.”
“Even if movie and music downloads don’t drive shoppers into stores, they at least keep retailers like Best Buy in the movie and music business,” Freed reports. “Wal-Mart Stores Inc. is the farthest along after selling 3,000 movie downloads in its first month, February.”
MacDailyNews Take: Bzzzt! Try again, Josh. Apple is farthest along, not Wal-Mart. Wal-Mart’s not even in the game compared to Apple. For perspective, something this AP reporter and report obviously lack, at the rate reported, it would take Wal-Mart 3.5 years to equal Apple’s first week of movie download sales. Apple sold over 1.3 million movies in the first 3 months and has been selling for approximately 7 months so far. Wal-Mart would only be “farthest along” if Apple had stopped selling movie downloads after 3 months and Wal-Mart continued at their current rate for the next 8 1/3rd years. Not putting Apple’s sales into the article is shoddy reporting, due to incompetence or by intent, that fails to provide important context and pertinent information for the reader. Related articles:
Fortune: Apple Inc. is America’s best retailer – March 08, 2007
Disney film sales via Apple’s iTunes Store rise sharply; over 1.3 million sold in first three months – February 02, 2007
Disney sells nearly 500,000 movies via Apple’s iTunes Store in less than two months – November 09, 2006
Disney sells 125,000 movie downloads via Apple’s iTunes Store in first week – September 19, 2006
Freed continues, “Meanwhile, some online businesses already have tech-savvy customers. Netflix Inc., the online-only service that ships DVDs through the mail, is rolling out a streaming-movie option. And of course there’s Apple, which has begun selling movies at its iTunes store online. Video-on-demand from cable offers another option for avoiding a trip to the store. Amazon.com Inc. offers downloadable movies that can be sent to your TiVo, and Microsoft Corp.’s XBox Live marketplace does, too, some of them in high definition.”
Full article here.
We eagerly await Joshua Freed’s next article for The Associated Press which will explore the soft drink industry while barely mentioning Coca-Cola and incorrectly crediting Fred’s Cola as industry leader.
Last week The Associated Press issued an Apple TV hit piece laden with conjecture and now this, which will also be syndicated to hundreds of media outlets. What exactly is going on here, AP?
Contact:
Related article:
Laptop Mag reviews Apple TV: ‘The best digital media adapter yet,’ 4.5 out of 5 stars – April 06, 2007
RUMOR: Apple TV team prepping update with new ‘Net-centric features – April 05, 2007
Additional Apple TV models coming? – April 05, 2007
AP writer criticizes Apple TV video quality – April 04, 2007
Apple TV USB support is now enabled via hack – March 30, 2007
Digit hands-on with Apple TV: ‘simple to set up, a delight to use’ – March 29, 2007
Newsweek: Apple TV has a lot going for it – March 29, 2007
Apple overriding Apple TV hacks? – March 29, 2007
Hacking Apple TV: Joost successfully run on Apple TV – March 28, 2007
Apple TV software hints at future DVR functions? – March 28, 2007
Ten Apple TV myths – March 28, 2007
Ars Technica in-depth review: Apple TV ‘impressed all those who touched it’ – March 27, 2007
The chips inside Apple TV – March 27, 2007
Analyst: Apple TV is a platform, not a single product – March 27, 2007
Digital Trends reviews Apple TV: 7 out of 10, ‘huge phenomenon will challenge conventional thinking’ – March 26, 2007
Automatically convert video files for Apple TV with Apple’s Automator – March 26, 2007
Apple TV, iTunes, iTunes Store: BusinessWeek’s Wildstrom blows it – March 26, 2007
iLounge gives Apple TV a ‘B’ in hands-on review: ‘recommended’ – March 24, 2007
CNET reviews Apple TV: ‘Very Good’ – 7.7 out of 10 – March 24, 2007
Video: Apple TV menu and interface walkthrough – March 23, 2007
Analyst: Apple TV will change the TV business – March 23, 2007
G4’s ‘Attack of the Show’ host Olivia Munn licks Apple TV – March 23, 2007
Xvid fully functional on Apple TV – March 23, 2007
Apple TV does not require Widescreen TV or HDTV, works with standard TVs – March 23, 2007
CBS looks at Apple TV on ‘The Early Show’ (with video) – March 23, 2007
Scoble: ‘Apple TV rocks’ – March 23, 2007
Apple TV hard drive upgrade works – March 23, 2007
Apple TV dissection photos – March 22, 2007
Apple posts Apple TV User’s Guide online – March 22, 2007
Enderle: ‘Apple’s attractive and well packaged Apple TV likely to set the pace’ – March 22, 2007
David Pogue demos Apple TV in humorous NY Times’ video – March 22, 2007
PC Magazine review gives Apple TV 4 out of 5 stars – March 22, 2007
NY Times’ Pogue: ‘Apple TV offers a gracious, elegant, effortless, delightful experience’ – March 21, 2007
Mossberg hands-on with Apple TV: ‘beautiful design, easy-to-use, classic Apple: simple and elegant’ – March 21, 2007
Apple TV projected to surpass TiVo, Netflix – March 20, 2007
Former Microsoft ‘Enthusiast Evangelist’ Gartenberg looks at impact of Apple TV – March 20, 2007
Apple TV ships – March 20, 2007
The article seems to emphasize the efforts of brick-and-mortar retailers. Sure it would’ve been nice to get analysts to quote on Apple, Inc.’s efforts, but we’re talking about some writer on a deadline. Anything about the iTunes store would require more comprehensive coverage. For Josh’s editors, what we read here suffices. When more movie studios adopt the iTunes sales model, and when more Apple TV capabilities are unleashed, we will read more about how Apple will dominate the currently infant movie download market.
Referring to the first MDN take: it appears to me that the AP writer is referring to retail stores (the sell DVDs) that are now moving into the downloads business. This doesn’t apply to Apple so they shouldn’t be mentioned here.
That’s far from blowing it. Apple just happens not to apply in the context the author is writing.
The point of the article is to look at what traditional and large-scale DVD/CD brick and mortar retailers are doing in regards to downloadable movies. They are already in trouble in music due to Apple/ITS eating away at CD sales. And that will only get much worse. Apple is a retailer, but it is not a broad consumer electronics/DVD/appliance etc. chain like those mentioned (Wal-Mart, Best Buy, etc). That’s why they get less ink. That said…
I do fault the writer for not saying how well Apple or even Microsoft are doing, which would have made his story much more informative to average readers (consumers) and chain execs and employees (A better hook: “Non-tradtional retailer Apple and software giant and Xbox 360 maker Microsoft are leading the movie download revoultion. Wal-Mart and other tradtional brick-and-mortar chains that dominate physical CD and DVD sales today are not even in the game. Once again, those who owned the market for content distribution are going to lose it, just like they did with music.”).
AP articles are just so slanted that I don’t even read them anymore
Unless a reader were deeply knowledgeable about the movie download business and knew about Apple’s efforts in this area, this article would be deeply misleading. Those claiming that this article focuses on the entry of brick and mortar retailers in this business are wrong in excusing it. Selective or poorly written reporting can be just as misleading as straight out inaccuracies. Any normal reader will conclude that Wal-Mart is the leader in the nascent movie download industry, not just among brick and mortar retailers. Since AP articles are carried by literally thousands of newspapers across the country, we should expect more from them than an article that wouldn’t be up to the standards of a good college paper.
More like MDN blows it with their misinterpration of the article.
I think the problem is that many people are having a difficult time adjusting thier paradigm to the fact that Apple is a LEADER in many industries rather than just a low market share PC maker struggling to survive.
Welcome to Steve’s Bank. I’ve got your money in a safe place – right here, in my left, front pocket!
You didn’t read the article very well MDN. And Freed didn’t write it very well either. But his point is that big box retailers with businesses of established retailr DVD sales are toying with movie downloads. He segregates Netflix and Apple and others that are “tech savvy” into a group that isn’t included. But he threw them a bone.
Very poorly written. Most journalism 101 students would have made his point more clearly. This guy must be a part-time writer. Maybe he’s a comedian who doesn’t want to be a waiter? 😀
He’s a bozo, and MDN is a bit of a bozo for giving him attention.
S.
The AP are liars, they have always been liars and will always be liars.
Most newspapers are just copy machines for the AP.
They never get contested so they say whatever they want.
Nice editorial staff MDN has working for them.
Next time: read, then jerk knee.
MDN is, of course, devastatingly correct.
One can lie by omission. AP is trying to minimize Apple’s role in the very industry this article purports to cover while inflating Wal-Mart’s role to an insane degree.
Anyone who can’t see that is mentally deficient.
Money changed hands here, as is usually the case with the AP.
. . . but we’re talking about some writer on a deadline.
So what? A deadline is as much of an excuse for errors as the dog ate my homework. Every news story is written before a deadline.
“The AP apologizes for stating that the sun went nova, California floated out to sea and the Zune surpassed the iPod in sales. The stories had been written on a deadline.”
Since when did iTunes become a retail store? Read the article again MDN.
Including headline, the article says the word RETAILERS 10 times.
Yep. MDN just blew it this time. I love ’em but they are just wrong.
This article is clearly meant to be about how physical retail chains are dealing with the move to digital media.
There is no reason iTunes should be mentioned here.
Allen,
The iTunes Store became a retail store the day it opened.
For those of you trying to defend the article, this is hardly different from Microsoft claiming to be the number two supplier of 30 GB Hard drive based mp3 players. Both are technically correct, yet completely irrelevant to the truth of the market. Wallmart isn’t even close to the number one one line seller of video – as the article leads people to believe – and MS is far from being number two with mp3 players.
You can’t honestly write about downloading movies without talking about the iTunes store any more than you can honestly claim that the Zune is number two in the market.
Chris, okay you’re right, iTunes is a retail store, but it is NOT a brick and mortar retail store which is what the article is talking about..
Im going to have to go with MDN here.. the AP story is shoddy and leaving out Apple makes it pointless to write a story about music or movie sales moving onto the internet.
What is this, “Retard Day?”
You will note that MacDailyNews included the article, “Fortune: Apple Inc. is America’s best retailer – March 08, 2007,” in their related articles list for a reason.
Newsflash: Apple is a brick and mortar retailer.
Apple is also an internet retailer that OWNS the market about which this AP pile of crap supposedly reports.
MDN correctly busts AP.
AP sounds like they’re on the take from Microsoft.
Retard day? Um no… The Apple store is a brick and mortar shop, but the iTunes store is NOT.
“One can lie by omission. AP is trying to minimize Apple’s role in the very industry this article purports to cover while inflating Wal-Mart’s role to an insane degree.
Anyone who can’t see that is mentally deficient.”
There’s a horde of mentally deficient people on this board here.. “read the article MDN” I read the article its junk. It’s minimization of Apple’s roll and hyperinflation of Best Buy and Walmart’s roll would be criminal if these were legal proceedings.
The article is worse than worthless with this level of white washing it borders on paid for propaganda.
Apple is as much a brick and mortar retailer as is Walmart, especially when it comes to downloading movies. You can’t download a movie from Walmart in the store, but with the wifi access at Apple, you very well could.
Wow, it appears Walmart’s video downloading is less brick and mortar than Apple. Who would have thunk it?
Allen,
Wal-Mart is a brick and mortar retailer trying and failing to sell downloads online.
Apple is a brick and mortar retailer actually selling vast quantities of downloads online.
Get it, yet, poster child for “Retard Day?”
Cpt. Oblivious,
Including headline, the article says the word RETAILERS 10 times.
Did Apple shut down their rapidly growing worldwide network of 170+ retail stores or are you just a knee-jerk moron?