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published:
01-May-08
territories:
USA
categories:
Content deal
Apple offers digital retail movies from most major Studios day-and-date with DVD
Apple has reached agreements with many of the major Studios to offer download-to-own (DTO) movies through iTunes. New release and catalogue titles are now available to buy from Fox, Disney, Warner Bros., Paramount Pictures, Universal, Sony Pictures Entertainment and Lionsgate. MGM has an existing agreement to offer digital retail library titles through the service. New release movies, which will be available day-and-date with DVD release, are priced at $14.99 with most library titles costing $9.99.
Our take...The host of deals announced by Apple will provide a welcome boost to the digital retail catalogue available through iTunes. Until recently Disney had been the only major Studio offering new release movies for permanent download through the platform. Fox and Paramount have experimented with a limited selection of newer titles but most Studios have been reluctant to offer retail movies through the platform.
All the major Studios began offering movie rentals through the iTunes store (iTS) in January 2008 but until now only Disney, Paramount, MGM and Lionsgate had offered a range of download-to-own titles. Having seen the effect of Apple's dominance in music downloads on record labels' revenues, many in the movie industry have been wary of creating a similar situation. If Apple replicates its dominance in the digital retail movie space it has the ability to dictate terms and set flat-rate pricing. In order for other platforms to have a realistic chance of competing with the iTS, they will have to adopt price parity with the service, consequently Apple's pricing becomes the de facto standard. As the DVD market matures, DTO is the only digital product which can hope to produce similar Studio revenue per transaction. But by setting the price point at $14.99, Studios are set to receive less revenue per transaction than the DVD equivalent. However, digital does not require the same distribution and manufacturing costs as physical product and taking this into account the resulting revenue from digital and physical are on a par.
Offering day-and-date digital retail through iTunes will serve to greatly increase Studios' revenues from digital downloads. Screen Digest estimates that iTunes was responsible for 80% of digital retail movie transactions in the US in 2007, despite offering new release movies from just one Studio. Device-centric services drive the transactional movie market and by not appearing on the iTS the Studios have been depriving themselves of a key revenue stream for digital. Screen Digest has long supported an approach of offering content through as many online outlets as possible but many of the Studios have been cautious.
With the introduction of day-and-date digital retail, release windows through iTunes have become more aligned with those of other online stores. Since January digital rentals have been available through iTS 30 days after DVD release. However, with the exception of Disney, most Studios have been only offering library titles as digital retail. By only offering titles on a DTO basis in the 30 day window after day-and-date release, Studios benefit from the higher margins available with the DTO business model.
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Analyst, market intelligence & notices
AOL to acquire Bebo
published:
13-Mar-08
territories:
USA
categories:
Merger/takeover/investment deal
Reports
(1) 1-1 showing
Online Sports Videos: Rights, Revenues and Forecasts
This comprehensive report includes a full analysis of the consumer market for online sports video (OSV) in the USA, UK, France and Germany. It also includes all of Screen Digest's proprietary market data and forecasts for the take up of different types of online sports video offerings, the growth of consumer broadband and the online video boom, an introduction to sports media right and an overview of technology as well as the infrastructure in the OSV market.
published:
04-Feb-08
territories:
UK, USA, France, Germany
Arash Amel
Articles
Portable player markets mature
European, American and Japanese sales slow down as some markets show signs of reaching effective saturation
published:
17-Jun-08
territories:
France, Germany, Italy, Japan, Spain, UK, USA - Nordic Region, North America, Western Europe
Sarah Johnson
FCC bonanza in spectrum auction
Contenders have bid $20bn for frequencies released bythe forthcoming analogue switch-off. Verizon bid the most money, AT&T secured the most licences
published:
23-Apr-08
territories:
USA - North America
Ronan de Renesse
Free online music as mainstream?
The record industry is exploring business models beyond retail, notably finding ways to make free downloads pay
published:
22-Feb-08
territories:
France, Germany, UK, USA - North America, Western Europe
Broadcasting on the Internet
A listing of the online video sites operated by broadcasters or which are displaying broadcast content.
published:
15-May-07
territories:
Belgium, Denmark, Finland, France, Germany, Italy, Netherlands, Norway, Spain, Sweden, UK, USA - Europe, Nordic Region, North America
Tim Westcott
Fibre optic roll-out in Europe
Various technology and business models are used in the European countries that have started to install fibre optic cable, but all are lagging behind the US
published:
19-Feb-07
territories:
Denmark, Italy, Norway, Sweden, UK, USA - Western Europe
categories:
Market data analysis
James Garlick
Rentmailer VoD offerings
Online DVD rental firms are building their portfolios with digital distribution in a strategy pioneered in the UK by DVD-by-post specialist LoveFilm and now spreading to Europe, the US and Australia
published:
25-Jan-07
territories:
Australia, France, Germany, UK, USA - Western Europe
Marie Bloomfield
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Western Europe
Basic data