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Broadband Movie Battlefield
Movielink as industry negotiation tactic
(old news - 09:21AM Tuesday Feb 04 2003)
tags: Video · business
Studio backed Movielink managed to position itself as one of the only broadband film services by out-muscling competition, though so far the service has been met with mixed reviews. A lot has been made on the fact that this current business model really isn't viable, but Red Herring argues that it really wasn't intended to be. The studios that back the project simply want to establish a brand and negotiate better percentage deals for the future. "We'll play around with the Web to put a good face on it all," notes one anonymous executive. "But, really, all we want is a renewal deal with cable that gives us a bigger piece of the pie."

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Forums » Broadband Movie Battlefield
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vortex72$

join:2002-04-03
33333

All about money and control

"But, really, all we want is a renewal deal with cable that gives us a bigger piece of the pie."

This quote sums up the attitude of corporate America, especially those in music/movie industry. Damn the consumer, or the business/innovation itself, just do WHATEVER it takes to reamain IN CONTROL and keep ALL the money. lol. Business is war, and dirty war at that.

Still better than a communist society I guess...maybe.

Go Chargers7
Fa Shizzle Ma Nizzle
Premium
join:2002-09-24
Huntington Beach, CA

Re: All about money and control

If the quote is even true.

Go Chargers7
Fa Shizzle Ma Nizzle
Premium
join:2002-09-24
Huntington Beach, CA


Yeah right

quote:
"We'll play around with the Web to put a good face on it all," notes one anonymous executive. "But, really, all we want is a renewal deal with cable that gives us a bigger piece of the pie."
Such satire passed off as fact makes questionable credibility for the rest of the story which may well be true but most definitely is biased. I am disappointed that Mr. La Franco saw fit to insert this distraction and let be known in no uncertain terms where he stands on the issue. Leaves me wondering if any parts of this story have been omitted. Guess we will never know.
--
When yer a pioneer, you're bound to get a few arrows in the butt.

[text was edited by author 2003-02-04 09:38:18]

KoolMoe
Aw Man
Premium
join:2001-02-14
Annapolis, MD
clubs:
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Re: Yeah right

Your bias is just as telling. Why is this satire? It appears to me to be a direct quote (note the quotes!). "Insert this distraction"? Doesn't seem to be a distraction - seems to be the whole point of the article!
Of course it's anonymous - this exec wouldn't last 10 min after the story came out if the name was revealed! Though of course, it does make it appear convenient.
I have more faith in well-established rags, like the Red-Herring, and doubt they would manufacture such quotes as truth.
Of course, I could be wrong, but your criticism has as much basis as you claim the article to have.
KM

Go Chargers7
Fa Shizzle Ma Nizzle
Premium
join:2002-09-24
Huntington Beach, CA

Re: Yeah right

A direct quote...no source...they don't even say what company he/she's from. I just don't buy it. Well established doesn't mean trust worthy...look at 60 Minutes.
--
When yer a pioneer, you're bound to get a few arrows in the butt.

Klendathu

join:2002-02-24
Studio City, CA
clubs:

Business model is flawed

If you look at the Movielink site, it costs $4.99 to watch a single movie as much as you like for 24 hours. Now what incentive is there if I can just drive 5 minutes to the local Blockbuster and rent a DVD which has lots of extra material, costs less to rent, and which I can view longer than 24 hours. Remember Divx with their restricted viewing window, well Movielink just reaks of that stench. And you know what prevailed, DVD did, and not the Circuit City backed Divx.

And you also need to download the movie which they say is around 550mb each. If your internet connection is slow, it is way easier to just goto Blockbuster.

Go Chargers7
Fa Shizzle Ma Nizzle
Premium
join:2002-09-24
Huntington Beach, CA

Re: Business model is flawed

Heck, at $4.99, Cable and Sat PPV is a good deal.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

Re: Business model is flawed

said by Go Chargers7 See Profile:
Heck, at $4.99, Cable and Sat PPV is a good deal.
but with PPV you can tape it and watch it later. it doesnt mysteriously disappear off the tape in 24 hours. this business model stinks (along with those chemical DVD's that die within 72 hours of being opened)

Overdrive
Are You Where You Want To Be?
Premium
join:2001-05-31
Waterbury, CT

My wife would love to use this with Twins on the way she isn't going to have time to get out and return that movie. Although i was thinking about netflix no late fees either.

4.49 per movie... sounds nice. What if you never get the entire download, is there a phone number to call to be re-imbursed?
--
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Klendathu

join:2002-02-24
Studio City, CA
clubs:

Re: Business model is flawed

Netflix sounds like a better business model to me. Order stuff online and wait a couple of days and it's in your mailbox. Their prices are fairly reasonable too for the amount of DVDs you can rent out.

Overdrive
Are You Where You Want To Be?
Premium
join:2001-05-31
Waterbury, CT

Re: Business model is flawed

Shhh... it is going to be part of a mothers day gift for her... along with some other fun stuff. having Twins is going to keep her busy and I know those late fees from Blockbuster, etc are going to kill us.

there have been so many movies that we have returned late that we could have bought them out right.
--
Need a Web Developer?

Derek_Wildstar
Why the fck is Shane walking in there?

join:2001-02-24
Iscandar

Re: Business model is flawed

Glad to hear that you will be blessed with twins soon, Overdrive. I agree that you will be busy, but I would think that - barring any physical impairment - she shouldn't be so busy that she (or you, for that matter) wouldn't be able to leave the house for the 5-10 minutes that it takes to walk/drive to the video store, slip a video in the return slot and then return home. You could even do it while running errands, which I am certain needs to be done on a regular basis (grocery store, drug store, etc.)

It sounds like these are your first children. If that is true, take a piece of advice from a father of two: once you develop a routine, it won't be as difficult as you imagine. Not to say that there won't be any difficulties, just that you will adapt to the situation. Heck, a buddy of mine has TWO sets of twins, and he and his wife work outside the home; and with no family nearby to babysit them, either.

Or......are you merely using this situation as justification for buying something that you want?
--
I use conjecture and hearsay. Those are kinds of evidence. - Lionel Hutz

Overdrive
Are You Where You Want To Be?
Premium
join:2001-05-31
Waterbury, CT

Re: Business model is flawed

Probably more like something We want.

wow 2 sets of twins.

yes our first(s).

We live 30 minutes away (total) and it is a pain to drive it. Netflixs allows us to have more than 1 movie at a time and for as long as we want, which means that If the kids are up and sick then we have to bring back the movie, or take the late fee hit.
--
Need a Web Developer?

Derek_Wildstar
Why the fck is Shane walking in there?

join:2001-02-24
Iscandar

Re: Business model is flawed

30 minutes away from the nearest video store? Damn, that IS inconvenient. Oh well....

Orwell1984

@rr.com

Try Netflix from the east coast. All shipments leave and return to CA. It isn't such a good deal with a 7 to 10 day turnaround. And as far as paying $4.99 to get a movie I can only watch on my computer and only for a short 24 hours.Hard to stop laughing at that long enough to type.

BellBoy
Obama racist? Then Bush is Hitler.
Premium
join:2001-02-20
Los Angeles, CA
clubs:
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said by Klendathu See Profile:
If you look at the Movielink site, it costs $4.99 to watch a single movie as much as you like for 24 hours. Now what incentive is there if I can just drive 5 minutes to the local Blockbuster and rent a DVD which has lots of extra material, costs less to rent, and which I can view longer than 24 hours.
The business model is aimed at a very small group of people: agoraphobes that need to be chainsawed out of their home since they weigh so much...oh!...and that have high-speed connections...


--
I'm not an ASI tech, but I play one on TV...

KrK
Heavy Artillery For The Little Guy
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join:2000-01-17
Tulsa, OK
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I think the really telling quote straight from the Horse's mouth is:

"Hollywood studios still make far more profit from selling movies on DVD, which carries a profit of more than $10 per unit"

In other words, on today's DVD's, everything above about $3 a movie is the PROFIT.

So when a movie sells for $25 on DVD it's really over $20 in profit. I don't know how much the merchant makes in markup, but it's apparent that the Studios make a lot of money on DVD sales and are very happy.
--
"When the day comes that anyone can bend our country’s laws and lawmakers to serve selfish, competitive ends, that day democratic government dies" -- Preston Tucker, 1948 (Yep, it's dead.)

MPScan
Premium
join:2001-08-24
Boston, MA

Actually....

I have used Movielink and have nothing but good things to say about them. The downloads are fast, and for a 550 mb file, the quality is exceptional. I downloaded a few movies, hooked up my TV to the TV Out in my video card and piped the sound through my home stereo and it was just like a real DVD.

No late fees like everyone pays with blockbuster. I saw lower the price a buck or so. Let people keep the movies for 7-14 days (or even up to 30!) and it will make some good money.

tastypoison

join:2000-10-16
Jacksonville, FL

Re: Actually....

What is the format of the downloaded movies? What is the resolution and such?

550 Meg just sounds kinda small. SVCD's run ~800 Meg and it takes 2 SVCD's to capture a two hour movie. DivX gets the files smaller, but a HQ DivX copy of a two hour movie still usually fills a 700 Meg cd.

bear73
Metnav... Fly The Unfriendly Skies
Premium
join:2001-06-09
Grand Forks Afb, ND
·Midcontinent Commu..

Re: Actually....

wonder if anyone has tried to capture the video feed out of the video card. Wouldn't that be a hoot!
headline in news "...Movielink found supporting pirated material! MPAA to sue! Film at eleven!..."
--
If ya gotta go, Go with a SMILE!

MPScan
Premium
join:2001-08-24
Boston, MA
It's just a matter of time before M$ has their Digital rights Management (DRM) cracked. I'd put $100 on it that it will be cracked by 6/1/03.

KoolMoe
Aw Man
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join:2001-02-14
Annapolis, MD
clubs:
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I've used it too and am pleased. Blockbuster is far for us too. It's not hard for the movie returns to slip out mind, resulting in big late fees.
We don't have a DVD player yet, but once I find a good enough deal, will do and do NetFlix.
Til then, this is a great alternative. We decide which movie we want to watch Saturday night and I start the dload Friday evening before bed. Dload has never failed (the three times we've done it) and is waiting on the HD Saturday. That evening I turn on the wireless send/receiver, set the TV to line-in, and enjoy...
I think it's a good idea, but I don't like the idea of it being used as a bargaining tool!
KM

MPScan
Premium
join:2001-08-24
Boston, MA

Format...

They use Windows Media Video files (.WMV) which are supposed to be superior in quality and format, but as we all know they're unique to MS software. Anyways, they use the new Microsoft DRM (Digital rights Management) to acquire a license for the video file from a server and allow it to play. You can copy the file to another computer but can't open it or do anything unless you allow the computer to verify your ability to play the movie with the DRM server.

tastypoison

join:2000-10-16
Jacksonville, FL

Re: Format...

So, I have to be connected to the internet before I can play the file? Yuck.

Unless I want to watch the movie on my 17 inch monitor, that won't work for me. I usually burn avi's to disk and use my laptop to play them on TV. My TV and cable modem are on opposite ends of the house.

I also thought this might be good for traveling...rent and download a vid for $4.99 before leaving...keep it on my laptop up to 30 days...hook the laptop to the tv in the hotel and save a few bucks. In my experience, in room video on demand rentals run about twice as much. But again - if this requires an internet connection at the time of playback, I'll just keep toting pre-burned cd's with me
mrsharkey

join:2003-01-21
Miami, FL

Re: Format...

You just have to be connected when you start to watch the FIRST movie on a particular machine. After that, the rights are apparently established, and you can play that movie, or others you've downloaded, at another time when you aren't connected.

I do that, with the laptop SVID and stereo outs plugged into my main tv, and I couldn't tell it wasn't a rental from Blockbuster - except it "returns" itself, and I get no late fees.

MPScan
Premium
join:2001-08-24
Boston, MA

Yes, I neglected to mention that. However, here is the issue:

You have to connect to the 'net when you FIRST watch the movie and the rights are established. The problem is that Movielink makes you watch the movie within 24 hours after you first start playing. It can remain on your harddrive for a month before viewing, but once you start to view, you have 24 hours before the file is deactivated.

BellBoy
Obama racist? Then Bush is Hitler.
Premium
join:2001-02-20
Los Angeles, CA
clubs:
·Pacific Bell - SBC


It Makes The World Go 'Round...

Some people actually have to wonder why crappy films are released and marketed...
quote:
"We'll play around with the Web to put a good face on it all," notes one anonymous executive. "But, really, all we want is a renewal deal with cable that gives us a bigger piece of the pie."
So that's why Adam Sandler and Rob Schnieder are allowed to put out that drek in the theaters! It's all about what bones (very fitting term here) to throw the cable/sat companies to appease them. This way they have some crap time filler to give them for the blockbusters that the stations want (Spider-Man, etc.) that are few and far between.

There are so many absolutely wonderful films out there that people don't see on cable or the subscriber networks. Know why? They can still make money off of them by having yet another "Special Edition" DVD release (making 3 or so in print) of some movie that they know people will buy. A good example: The Stanley Kubrick Collection. A short while after this boxed set was released, WB had the unmitigated gall to release another version with most of the films remastered (including 2001). Luckily, I didn't fall for either one, but can you imagine forking out $100+ just to see a "better" version released so quickly thereafter?

I'm surprised that more people aren't as bent out of shape about this like I am--I guess it's just the dedicated movie lover in me.

Edit: typos
--
I'm not an ASI tech, but I play one on TV...

[text was edited by author 2003-02-04 12:29:36]

djrobx

join:2000-05-31
Valencia, CA
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Re: It Makes The World Go 'Round...

quote:
A short while after this boxed set was released, WB had the unmitigated gall to release another version with most of the films remastered (including 2001).
People weren't happy with the first one. So they released a better one. Those bastards! I know what you mean though, it's like Lucas and his Star Wars Trilogy box sets (why he hasn't opted to rake in some cash on a DVD version is anybody's guess, I'd think he'd have cranked out a few different versions of it by now).

Oh, and I like that "dreck". Sometimes a mindless laugh is a good thing.

-- Rob

BellBoy
Obama racist? Then Bush is Hitler.
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join:2001-02-20
Los Angeles, CA
clubs:
·Pacific Bell - SBC

Re: It Makes The World Go 'Round...

said by djrobx See Profile:
Oh, and I like that "dreck". Sometimes a mindless laugh is a good thing.
Don't get me wrong...I'm all for mindless laughs, but I guess I come from the original "Not Ready For Prime Time Players" era of SNL. Although I mostly like SNL--when it was good--it seems like Lorne Michaels will put out anything even remotely related to the show...that's the drek that I'm referring to. Anyone remember "Pat"?...didn't think so...

Studio advertisers do this hit'n run $h!t by constantly bombarding us with the only good/funny clips from a film to herd us into the theaters and wring out the only cash they'll ever see before word of mouth hits the street. Show biz will always be like that...all slight of hand...now you see her, now you don't...
--
I'm not an ASI tech, but I play one on TV...

Derek_Wildstar
Why the fck is Shane walking in there?

join:2001-02-24
Iscandar

said by BellBoy See Profile:
So that's why Adam Sandler and Rob Schnieder are allowed to put out that drek in the theaters! It's all about what bones (very fitting term here) to throw the cable/sat companies to appease them. This way they have some crap time filler to give them for the blockbusters that the stations want (Spider-Man, etc.) that are few and far between.
Actually, the reason that studios keep slopping out the dreck from Adam Sandler and Rob Schneider is because they make money for the studios, period. It's the same reason that the keep pounding out "reality" shows: because enough people watch them to turn a profit. So movie lovers like you and I can still watch quality movies like The Hours, The Gangs of New York or My Big, Fat Greek Wedding and quality TV shows like "CSI" and "The Sopranos", and choose to do something else during "Jackass" or "Survivor".
--
I use conjecture and hearsay. Those are kinds of evidence. - Lionel Hutz
egoinjax

join:2003-02-04
52124

This seems good in theory...

I think its good in theory, but I they would get alot more renters if they didn't charge $5 a movie or gave it longer then 24 hrs. 24 hrs is simply too short. $5 isn't bad for a new release since people forget gas costs money when you drive somewhere, not to mention time. We'll see how this pans out.....
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