iTunes movie rentals: winners & losers

“The FT and others report that Apple and News Corp.’s 20th Century Fox are preparing to announce a digital movie rental service via Apple’s iTunes store. The service hasn’t been acknowledged by either company, so it’s a bit early to call it a hit or a dud. But here’s a look at some potential winners and losers if the service ever takes off,” Dan Frommer writes for Silicon Alley Insider.

Winners:
1) Apple
2) Akamai Technologies
3) 20th Century Fox

Losers:
1) Other download/mail/store-based movie rental services, such as Blockbuster, Netflix, Amazon, etc.
2) Cable companies, telcos, and anyone else offering video on demand.
3) Blu-Ray, HD-DVD
4) Microsoft
5) Sony (SNE), cellphone manufacturers (MOT, NOK), and other consumer electronics makers

Full article here.

29 Comments

  1. This will only work if Apple manages to get the all of the Big 5 movie studios on board, which is unlikely. TimeWarner and Universal are not likely to let Apple run their music business like they have their music business.

    That said, if Fox, MGM, and Disney signed up I would probably sign up too.

  2. I think if they allow back up of hi-def disc, they will see a resurgence in sales over the next few years of classics and children’s movies. Not overnight, but eventually.

    As I have said for a few years, cable and telcos will have to shift their business model to depend on supplying bandwidth, and away from supplying content, as this will be made available by the like of iTunes. A slow build out to fiber will perpetuate this.

  3. “TimeWarner and Universal are not likely to let Apple run their music business like they have their music business.”

    Apple isn’t doing anything to run their business, they just want you to think that. Bottom line is the music industry failed to see the way of the future and did nothing. Apple stepped in, created a path, now they don’t like it and are whining like a bunch of babies.

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