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story category Futility on Demand
Broadband film services still lacking
(old news - 09:02AM Monday Apr 05 2004)
tags: Video · business
The Washington Post takes a look at both Movielink and CinemaNow, two broadband film download services. While initial reviews were poor, it was supposedly because the industry was simply staking their claim, and working for brand recognition among early adopters. One year later and the complaints are much the same. Speaking at USTA Telecom 03, Movielink CEO Jim Ramo claimed "video on-demand is here today". For cable providers perhaps. The services still offer too few titles with too many restrictions for too much money. The services also continue to insist that users run both Windows and IE.

Related:
  1. WSJ Thinks Verizon Could Buy DirecTV
  2. Cable Industry: Shucks, Guess Nobody Wants CableCARDs
  3. Overhyped ZillionTV Effort In Trouble?
  4. Comcast Internet Video Launching Before Year End
  5. Hulu May Start Charging In 2010
  6. Netflix To Offer Standalone Streaming Video Service
  7. Netflix Streaming Coming To PS3 In November
  8. Apple Cooking Up New $30 A Month TV Service?
Forums » Futility on Demand
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Post a:
ParanoiaInc

join:2002-08-28
Tucker, GA

Why would anyone want to pay for less than DVD?

The problem with Movielink and others is that the bitrates are subjective at best and often less than a decent-quality DVD transfer. Not only that, but then there is the case of oversubscription conditions on networks where bottlenecks become an outright blockage.

Imagine sharing an OC-3 with 3,000 or more other customers. Come Friday night its hell on wheels as the lack of QoS and network congestion in a near-mature scenario are the end results.
Tuvok9
Rangcor The Great
Premium
join:2004-03-04
Fairview Heights, IL
clubs:

Movies on Broad band to dowload

This may break the Movie rental if people that has broadband can down load the movies int their computer. then they can either watch it or burn it to a DVD or VCD. This may be a great idea but what about the movie manufactures. they get revenue when a movie is rented or watched. Will they still get that revenue if it is downloaded?
ParanoiaInc

join:2002-08-28
Tucker, GA

Re: Movies on Broad band to dowload

I am not exactly sure how many people would find it worthwhile to take a low-bitrate movie, stream it for recording under the potential conditions of frame-loss (dropped frames), only to fork up the $1 for the DVD-R, so they can get what would amount to the crappiest looking picture compared to a real DVD.

I'd much rather rent the actual DVD and copy it. No chance of dropped frames. No condition of lower bitrates.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
Those downloads are full of DRM. it would be pointless to waste a cd on a protected format that dies within 24 hours.
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ctceo
Premium
join:2001-04-26
South Bend, IN
clubs:
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1 edit

Video Store

Tuvok9-

Video stores pay a hefty price for their copies of video tapes, but the revenue the movie industry gets is from sale of that one tape only. All other revenue generated from rentals goes directly into the pockets of the store owners. Thats the reason I don't rent RPG games from rental stores anymore. Heres an example of the math for a store in my neck of the woods.

For the below example we are calculating just new releases, not video games or older titles.

A copy of a newly released VHS tape costs rental vendors anywhere from $90-140 (sometimes a uniquely higher or lower cost due to popularity or lack thereof). That tape can be viewed a lot of times provided the renters take good care of the tape. Now Lets say that the store bought 35 copies of that movie with 35 in backup. At an average purchase price of $115, thats $8,050 for all 70 copies. Now lets calculate the rental cost @ an average of $5 for 3 days, Thats $1.67 a day not including tax or late fees of ~$5day for every day it's late (6% tax here in Indiana). $1.67 * 29 Days = $48.43 per title. In a year thats $609.55 for just that one tape, or $21,334.25 for the whole set of 35. Since most places set all 70 copies out now thats $42,668.50 in the same time. NOT including the profit made from the tape as an old rental, or when they decide to slim their # of copies down from 70 to 5. In which they make a $585 pure profit (based on used sale price of ~$9). This is all assuming costs of just that one title, Most places have at least 150 or more "NEW" releases at any one time.

-----

The problem with online movie rentals is just that, they are online, not only do we have a severe congestion problem, but a flaw in how they operate the services. Instead of clogging the bandwidth they need to test each connection to a specific movie server, and set a limit, kind of like theatres have a seating capacity. Then they need to have showings set on a very strict time scale. The on-demand thingy for movies is just a tad bit overrated in my opinion. They need to change the way they do things or face severe revenue losses over the coming year. I for one would rather walk to the video store to rent an analog VHS tape than rent some broadband data-pipe full of half-compressed, not-guaranteed, crappy video stream.
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Transmaster
Don't Blame Me I Voted For Bill and Opus

join:2001-06-20
Cheyenne, WY
·Qwest.net

idiots

The Movie tycoons that are trying to do movie downloads on line must be the same clowns who wowed the world with Divix
Without a high, and I mean high speed connection the quality is crap, and with all of the restrictions these goons put on the file it's almost unplayable anyway. If I want to see a movie that bad I'll just hit my remote and order a pay-per-view movie on my Dishnetwork system.
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"Remember when hacking a loogy it comes not so much from the lungs but from the soul."

Yowzaaah
Ours Go To Eleven

join:2000-12-14
DamnFlat, OH
clubs:

They aren't really trying at all

They have built a straw man for "pirates" to deprive of money. Something they can point to as a failed or unprofitable venture that is having the bread stolen from the mouths of it's starving employees by evil bands of P2P thieves.
Forums » Futility on Demand


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