Apple’s ‘hobby’ poised to disrupt entire movie rental industry

So far, Apple CEO Steve Jobs has described Apple TV “coyly as a ‘hobby,'” David Zeiler blogs for The Baltimore Sun.

“One thing Apple has proven in recent years is that it often can succeed where others have foundered, such as with the iPod or its chain of retail stores. Solving video over the Internet is exactly the sort of challenge Apple relishes,” Zeiler writes. “Apple now can put its experience as a video vendor to use as it crafts the most user-friendly option for consuming video over the Internet.”

“The move to rentals makes complete sense, and probably was inevitable. In the years Apple has dabbled in offering video downloads, it has learned that fewer people want to own video than do music,” Zeiler writes.

“The deal with Fox shows Apple is serious about getting video right. The content, according to the Financial Times of London, will be new. It will be encoded with Apple’s FairPlay digital rights management software, but it should play on Macs, iPods, iPhones and on a TV via Apple TV. In other words, users will be able to watch the rented video pretty much on a variety of devices, unlike other services that restrict the user to a single device,” Zeiler explains. “Apple is even licensing FairPlay to Fox for use on its DVDs. This will allow the video to be ripped legally to a computer for transfer to a video-capable iPod or iPhone.”

Zeiler writes, “The millions of handheld video-capable devices Apple has sold over the past few years surely supplied a major piece of leverage in securing this deal. In the case of the iPhone and iPod Touch, one could download the content directly to the device through iTunes. What studio wouldn’t want a piece of this action?”

“Apple isn’t far from having a killer video strategy. It has most of the pieces in place already. It just needs to bridge the gaps and then integrate those pieces as only Apple knows how,” Zeiler writes. “Then watch how fast Apple’s ‘hobby’ disrupts the entire movie rental industry.”

Full article – recommended – here.

37 Comments

  1. Who couldn’t see this? It’s so obvious. I just hope they work out licensing deals outside the US faster than they have in the past.

    Obvious, ah wish it were so, even the transparent is opaque to those with dulled vision.

    “Mark my words, rentals won’t do much to help.”

    Marked.

    – for the recycle bin ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

  2. Remember, this is only a first step:

    Even if every movie studio places every movie and TV show on iTunes at MacWorld there will remain the demand for live sports, localised news/weather programs, international shows, free-to-air digital, ad-based programs, etc coverage.

  3. Why would anyone pay $300 for a device to rent a movie. I can go into Wallyworld and by an HDMI DVD player for well under $75, and Netflix rules.

    Because that $75 player doesn’t have integrated iTunes, FrontRow, or access to your iTunes library. I’d gladly pay $300 for a one-stop, all-in-one HD media device with a UI that works.

    What we’re seeing here is very deliberate gameship by Jobs; he’s got us all fooled. Several pieces of the puzzle are being woven together, and by the time it’s clear what AppleTV is all about, it’ll be too late for MS, Sony etc. to respond.

  4. “What we’re seeing here is very deliberate gameship by Jobs; he’s got us all fooled. Several pieces of the puzzle are being woven together, and by the time it’s clear what AppleTV is all about, it’ll be too late for MS, Sony etc. to respond.”

    If Steve Jobs ever reads web comments about him he must laugh hysterically at all the people who think he’s some diabolical genius that parses every single word he ever utters as a piece of some master plan that he mapped out years ago.

    If he excuses himself to go use a restroom at some Apple convention/MacWorld/etc I have no doubt some people would take that as a sign he’s working to integrate peoples toilets with their iPods, iTunes etc.

    Apple TV has been an absolute bomb to this point. They released it, promoted it heavily on TV, the consumer spoke with their wallets by not buying many, and Apple quietly stopped the marketing campaign. I see iPhone and iPod touch commercials all the time. When’s the last time you’ve seen an Apple TV ad?

    Let’s revisit it in a year to see if this makes any difference. If it does, great.

    Apple fanboys make the BluRay and HDDVD fanboys look sane.

    Disclosure: Long and Strong AAPL stock.

  5. Agreed. Another question that still remains unanswered is the level of video quality these rentals will have. I seriously doubt you are going to get anywhere near physical DVD quality (as is the case with current Apple TV offerings right now). At least with a service like NetFlix, you’re getting full quality video.

    >>”The DVD and CD belong in the landfill right next to the 8-Track!”

    I disagree. I like having physical media (more so in the case of music/CDs). When everything is digital, you may gain instant gratification, but, you lose a certain amount of control over it. PLUS what about full loss-less quality? I’m not giving up that anytime soon.

  6. I couldn’t give a flying fsck at a rolling doughnut for the DVD ‘extras’. I’ll take a nice 24 FPS 720P QuickTime/H.264 movie any day.

    My preference is to buy- not rent. A nice touch would be a rental with the option to buy at a discount (are you listening, Steve?). And please, line up the indies and imports- not everyone lives in NYC, SanFran or LaLa land.

    A second generation Apple TV or a new Mac Mini with HDMI would be very nice. If still an Apple TV, how about something better than 40GB for $300 and maybe Bluetooth. It would be sweet if an iPod Touch or iPhone could be a smart remote via BT.

    One thing is for sure, we will know after the keynote. Blow the dust off of your IRC clients.

  7. “Because that $75 player doesn’t have integrated iTunes, FrontRow, or access to your iTunes library. I’d gladly pay $300 for a one-stop, all-in-one HD media device with a UI that works. “

    That’s the problem, only an Apple fanboy would pay $300 to get access to an iTunes library on a TV. The rest of us aren’t that keen.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.