Game changer: Apple’s iTunes Store offering major movies on same day as DVD release

“Major movie studios have agreed to allow Apple Inc.’s iTunes to sell movies on the same day they are released on DVD, another sign of Hollywood’s acceptance of business models that encroach on traditional DVD-sales markets,” Sarah McBride and Nick Wingfield report for The Wall Street Journal.

“Films from most studios hadn’t been available on iTunes until weeks after their DVD release. ‘This is a game changer,’ said Craig Kornblau, president of General Electric Co.’s Universal Studios Home Entertainment and Universal Pictures Digital Platforms,” McBride and Wingfield report.

“[Other] online retailers don’t have the same draw as iTunes. When iTunes started selling TV shows online, it helped take the market to $175.8 million last year from barely anything two years earlier, according to Adams Media Research,” McBride and Wingfield report. “Apple hasn’t said how many movies it has rented since introducing the feature in January. Adams Media says the video-rental market totaled $24 million last year.”

“Apple has seen great success in music sales. It has sold more than four billion songs and earlier this year surpassed Wal-Mart Stores Inc. to become the biggest retailer of music in the nation, according to NPD Group Inc.,” McBride and Wingfield report. “Apple hopes it can translate some of its music success to movies.”

Full article here.

[Thanks to MacDailyNews Reader “Brawndo Drinker” for the heads up.]

21 Comments

  1. Correct me if I’m wrong, but the press release said nothing about rentals, only sales. Another press release said one studio would be renting on-line the say day DVDs go on sale – only one.

  2. This will lead to Apple TV being able to back up to a time machine directly.

    Or at least it should. If people are going to Buy& store paid for content on their Apple TV and Apple TV alone, then they will need to be able to back it up without a computer.

  3. When the iPhone becomes an Apple TV remote, people are going to trip. Searching Youtube and iTunes via Apple TV remote is no fun. Using the iPhone’s keyboard is going to be sweeeeeettttt!

  4. “[A]nother sign of Hollywood’s acceptance of business models that encroach on traditional DVD-sales markets.”

    Huh? The Warner Bros. statement said their trials showed simultaneous electronic release increased DVD sales. Substantially. So it would seem this move enhances DVD sales rather than encroaches on them. Granted both words start with “en”, but surely even a journalist should be able to tell the difference between them.

  5. What they really need to do is release the films while they are still making them. This way what the actors could possibly see while watching the film is now, right now. Everything that is happening now is happening now. The actors would of course pass then. When? Just now. They’re at now, now.

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  6. “Adams Media says the video-rental market totaled $24 million last year.”

    Is that a typo? The video rental market had to be more than $24 mil. Maybe $24 billion.

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