Feeds

Movie download services quietly working on licensing

Just how much is not enough

Next gen security for virtualised datacentres

In two years since the launch of iTunes, some 500 million songs have been bought using iTunes, and at a dollar each that is more money than Screen Digest is predicting for movies. That’s can’t be right. Not when for each song the record labels want something like $.65 for each track sold, while the movie industry would want more like $8 for each film sold, perhaps $1.99 for each film rented, in line with Apple’s video pricing.

That $8 isn’t pulled out of a hat by the way. It is understood that this is what Sony will be asking when it finally releases its top 500 films, next year, triggering the take off in legally downloading films. There was one hope that Apple would unblock the log-jam earlier, when it launched its video iPod, but it looks like the Movie Studios have learned from the disillusion of the Record Labels and are refusing to let iTunes call the shots on pricing, delivery timescales and tying the films to a single, first to market device like the iPod. Instead it looks like Apple will get these films at the same time as everyone else, and probably around the end of March Sony will deliver on its promises to release these films in digital online format and the rest of the studios will follow.

While film licensing is far more complex than music licensing, and it took iTunes almost a year to cross the Atlantic due to licensing negotiations, it is likely that US only or Japan only or both countries will see film services launched by the Spring and the others would gradually follow.

We know that such negotiations have been going on at Bertelsmann subsidiary Arvato and also that Tiscali has been attempting to build European licenses for CinemaNow content, for over a year, so Europe may not be quite so far behind the US this time.

The result will be multiple commercial outlets in almost every country by the middle of next year, and while Apple will not be left out it will have its work cut out trying to climb to the top of the pile in films, without the head start it had in music.

Screen Digest says that every broadband household in the UK will have downloaded at least one movie from a legitimate Internet movie service by 2010 citing 18.5m broadband homes in the UK by 2010, consuming over 20m movies a year via Internet platforms.

We say that the market will be that big next year, rising in a parallel development that music experienced with iTunes, thereafter, until it becomes 10 per cent of the global movie market. Let’s see who’s right.

Copyright © 2005, Faultline

Faultline is published by Rethink Research, a London-based publishing and consulting firm. This weekly newsletter is an assessment of the impact of the week's events in the world of digital media. Faultline is where media meets technology. Subscription details here.

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?