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story category Wal-Mart cancels movie download service
HP hints at little consumer interest....
(old news - 08:59AM Friday Dec 28 2007)
tags: Video · content
Tipped by robertfl See Profile
It didn't take long for WalMart to shut down their movie download service, which we first reported on back in February. It's not too surprising that the service, which charged you $20 for "near DVD" quality downloads you couldn't play on your DVD player, would struggle in a quickly growing market. Walmart blames HP, not their restrictive and pricey download model. HP says the system just didn't perform financially (thanks of course to their restrictive and pricey download model):
Click for full size
Wal-Mart shut down the download site after HP discontinued the technology that powered it, Walmart.com spokeswoman Amy Colella said in an e-mail. She added that it will not look for another technology partner. HP spokesman Hector Marinez said the company decided to discontinue its video download-only merchant store services because the market for paid video downloads did not perform "as expected." He noted that the Internet video business remains uncertain and is changing rapidly.
The idea was revolutionary in the fact that it offered films for download the same day they came out on DVD.

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Forums » Wal-Mart cancels movie download service
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Post a:
markopoleo

join:2003-04-02
Bonne Terre, MO

Wrong..

It had nothing to do with "restrictive download model" like author failed grasp. It has to do with they could not get the partners they wanted to sign up for them, and the lack of interest because of such.

TK Junk Mail
Go ahead, make my day
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Re: Wrong..

said by markopoleo See Profile :

It had nothing to do with "restrictive download model" like author failed grasp. It has to do with they could not get the partners they wanted to sign up for them, and the lack of interest because of such.
How do you make money when most people are stealing the movies at illegal web sites?

Mactron
el Camino Real
Premium
join:2001-12-16
CM94sv

Re: Wrong..

said by TK Junk Mail See Profile :

How do you make money when most people are stealing the movies at illegal web sites?
You price it competitively. $20 and it won't play in your DVD player is nonsense and NOT competitive. Not everyone is in on the worldwide conspiracy to steal media.
--
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TwKs

join:2007-04-29

said by TK Junk Mail See Profile :

How do you make money when most people are stealing the movies at illegal web sites?
How can you say most people? That is a very broad generalization, is it not?

TK Junk Mail
Go ahead, make my day
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edit:
December 28th, @10:18AM

Re: Wrong..

said by TwKs See Profile :

said by TK Junk Mail See Profile :

How do you make money when most people are stealing the movies at illegal web sites?
How can you say most people? That is a very broad generalization, is it not?
Based on hundreds of news articles over the last 2 years publishing the results of surveys, polls, etc.
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nasadude

join:2001-10-05
Rockville, MD
·Comcast

Re: Wrong..

said by TK Junk Mail See Profile :

]Based on hundreds of news articles over the last 2 years publishing the results of surveys, polls, etc.
most of which were either written by "stenographers" simply laying out the industry line, are based on non-reviewed data paid for by the industry, or are simply numbers made up by some group or organization.

the only rigorous, academic studies I am aware of indicate that "pirating" has little or no impact on media sales; one study targeted at P2P music sharing indicates there could actually be a positive impact on music sales.
jesseb_66

join:2002-12-06
Tucson, AZ

Re: Wrong..

$20 is just too much. Unless a movie is brand spanking new and even then you can still find it cheaper else where. I personnally just wait a few months after DVD realease and pick a used copy from blockbuster for 4 for 20....

Silliness

@tds.net
If it's in the news, it must be right! Believe everything you read? Surveys are opinions, not reality. Polls are also opinions. The data depends on who you ask. Not exactly accurate.
nasadude

join:2001-10-05
Rockville, MD
·Comcast

said by TK Junk Mail See Profile :

How do you make money when most people are stealing the movies at illegal web sites?
same way the bottled water companies do - offer consumers convenience, choice, no restrictions and reasonable price.

not a single movie download service has done this yet and until they do, these endeavors will continue to fail.

I call BS to eternity to anyone that bitches about "how can they make money when it's available for free!!!!"

maybe you should go talk to RadioHead.

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

said by TK Junk Mail See Profile :

said by markopoleo See Profile :

It had nothing to do with "restrictive download model" like author failed grasp. It has to do with they could not get the partners they wanted to sign up for them, and the lack of interest because of such.
How do you make money when most people are stealing the movies at illegal web sites?
same way itunes does. demand is there.
--
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Silliness

@tds.net
MOST? Right...
Jwatch

join:2002-09-04
Woonsocket, RI

said by TK Junk Mail See Profile :

How do you make money when most people are stealing the movies at illegal web sites?
More people are downloading movies illegally than purchasing them?

I would really love to see the statistics behind that figure.

/another internet know-it-all
dlr_graph

join:2002-02-03
Elizabeth, NJ


edit:
December 30th, @12:47AM

The web sites are legal but the content is made available illegally. Also downloading available contents may be illegal but it is not theft. And, how do you know that people who may download these movies don't buy a copy at a store after the movie has been watched?

Nightfall
My Goal Is To Deny Yours
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join:2001-08-03
Grand Rapids, MI
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Its less about the restriction and more about the price.

Sure, the common BBR user will say it was a restriction on where you could play the video, but the simple fact of the matter it was the price. For $20, someone can buy a movie for crying out loud. Why pay $20 to download it and not have a copy you can carry to your big screen HDTV.

The common user doesn't take the time to burn DVDs at their computer. To most users, its easier to just go out and buy the freaking movie on a disc and bring it home. Oh, and the price to buy the movie will probably be less than $20 too.

If Walmart made the system so it was like $2 for downloads of movies, then this service probably would have took off. As it is, $20 is way overpriced.
--
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Skeedatl
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Re: Its less about the restriction and more about the price.

Not just that, but you can often get DVD's for WAY cheaper than $20.

It's just like the networks' demands on Apple with iTunes. They wanted to increase the price to the point it would be way cheaper to just buy the entire season on DVD.

Greed gets the better of some companies.

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK
·Cingular Wireless

well this is the first I had heard of it

But maybe that's because I don't think of Walmart when I want to go buy media.

Wal-mart has some serious image issues when it comes to the internet. They should concentrate on what they are good at, moving phyiscal merchandise.....their site to store option with no shipping really kicks ass....if they could just get around the tax issue like Amazon does.

verolom

join:2002-03-23
Eatontown, NJ

Apple

Just in time for Apple to introduce their movie rental business. Somehow I doubt movies from iTunes would be much cheaper or burnable to DVDs and yet somehow their venture will likely succeed. Wonder why...
yabos

join:2003-02-16
Ingersoll, ON

Re: Apple

They'll have to price it in line with regular DVD rentals otherwise there's not much point in renting from them. I can see it being $1-2 more than the typical rental place because of convenience but much more than that and I doubt it'll succeed.

dadkins
Living on a Blu Planet
Premium,MVM
join:2003-09-26
Hercules, CA

Re: Apple

I can rent DVDs for $0.99 and play them on whatever!
jester121

join:2003-08-09
Lake Zurich, IL
·ViaTalk

said by verolom See Profile :

Just in time for Apple to introduce their movie rental business. Somehow I doubt movies from iTunes would be much cheaper or burnable to DVDs and yet somehow their venture will likely succeed. Wonder why...
Because there's a large enough segment of this country that would line up with hundred dollar bills if Steve Jobs vomited in a bowl and put an Apple logo on it.

djrobx

join:2000-05-31
Valencia, CA
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quote:
Just in time for Apple to introduce their movie rental business. Somehow I doubt movies from iTunes would be much cheaper or burnable to DVDs and yet somehow their venture will likely succeed.
I dunno. I'm a big fan of Apple's products but I don't find Apple TV impressive at all. They should have put a DVD player or a DVR on the box ... or better, just updated the Mac Mini with "Apple TV" features. As it stands the $299 product does so little it's nearly worthless.

Apple does have a pretty good pulse on what people will pay for things though. I'm guessing Apple will fight to keep movie rentals cheap, like they have to keep iTunes music cheap.


BillRoland
Premium
join:2001-01-21
Ocala, FL
clubs:
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Amazon UnBox

I've recently begun using the Amazon UnBox video download service. I'm not terribly wild about the downloading agent you have to install, but its minimally intrusive (I disable the service and the auto-start with Windows Defender when I don't have anything coming up). Sure, the movies I download come with DRM, but should I lose it or something happen I can easily re-download it from Amazon, and the prices are right ($1.99 for hour long TV shows at DVD quality? Who can beat that?) I've also purchased quite a few DRM free MP3's at Amazon too. Overall Amazon seems to be on the right track with a "Cheap and Easy" model. Its not surprising to see Wal-Mart (and others) fail when they provide something that is neither cheap nor easy.
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dr3yec

join:2002-12-19
Oxford, AL
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Re: Amazon UnBox

If it isnt hd quality I wont touch it. I am hooked on wmvhd vc1. Not quite the size of true hd-dvd but still really nice. I will never watch a dvd movie ever again. Not as long as I have a hd tv. Walmart had no chance with there content. Plus $20 a movie. I dont think so.

Jon Geb
Wal-Mart Sucks

join:2001-01-09
Novi, MI

Re: Amazon UnBox

I got a Blu Ray player for Christmas and I'll never go back either. I love how DVDs are upscaled to 1080 also.

Skeedatl
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I'm not a big TiVo fan but I happen to be browsing Amazon.com today with a gift cert I received and clicked on the unbox ad. I was pleasantly surprised that they were renting movies like Transformers for only $0.99. That's a great deal, 80% cheaper than PPV, and even cheaper or as cheap as the local mom-and-pop video rental stores.

I have no problem with DRM with movie rentals. I'd gladly deal with DRM and just watch the movie rather than having to drive to the store to rent the movie then drive home, then have to do it all over when I'm done watching it.

It almost makes it worth buying a TiVo.
fuziwuzi
Not born yesterday

join:2005-07-01
Atlanta, GA
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Re: Amazon UnBox

I have an older Series2 TiVO that the Amazon Unbox link has given new life. I can sit here with my analog cable and browse the "pay-per-view" list on Amazon and several other sources with ease and the ones I want can then be downloaded to my TiVO for watching at my leisure, cheaper than what the cable company charges for PPV and their "digital" package.

RARPSL

join:1999-12-08
Suffern, NY

said by BillRoland See Profile :

I've recently begun using the Amazon UnBox video download service. I'm not terribly wild about the downloading agent you have to install, but its minimally intrusive (I disable the service and the auto-start with Windows Defender when I don't have anything coming up). Sure, the movies I download come with DRM, but should I lose it or something happen I can easily re-download it from Amazon, and the prices are right ($1.99 for hour long TV shows at DVD quality? Who can beat that?) I've also purchased quite a few DRM free MP3's at Amazon too. Overall Amazon seems to be on the right track with a "Cheap and Easy" model. Its not surprising to see Wal-Mart (and others) fail when they provide something that is neither cheap nor easy.
Of course Amazon UnBox is restricted to Windows users (and I think only those with XP or better) and has no support for Mac Owners (except for those who have a MacTel CPU and can thus run Windows Native Mode) who run MacOS X.
fuziwuzi
Not born yesterday

join:2005-07-01
Atlanta, GA
·Comcast

Re: Amazon UnBox

said by RARPSL See Profile :

Of course Amazon UnBox is restricted to Windows users (and I think only those with XP or better) and has no support for Mac Owners (except for those who have a MacTel CPU and can thus run Windows Native Mode) who run MacOS X.
Amazon Unbox also works on any TiVO Series2 or higher with a broadband connection. You can browse and download right from/to your TiVO without the need for a computer connection (PC or otherwise).

RARPSL

join:1999-12-08
Suffern, NY

Re: Amazon UnBox

said by fuziwuzi See Profile :

said by RARPSL See Profile :

Of course Amazon UnBox is restricted to Windows users (and I think only those with XP or better) and has no support for Mac Owners (except for those who have a MacTel CPU and can thus run Windows Native Mode) who run MacOS X.
Amazon Unbox also works on any TiVO Series2 or higher with a broadband connection. You can browse and download right from/to your TiVO without the need for a computer connection (PC or otherwise).
I'll acknowledge the TiVO capability. What I was commenting on was the ability to use it on a Computer where the "Windows-Only - We refuse to support Mac Users" restrictions are not made obvious until you try to access it from a Mac - At which point you are finally presented with the "Drop Dead Mac User" notice. Since a little check on the Browser Platform can be done by the Server, the text can be altered to warn the Mac User (or placed there in the first place).

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

DRM

When are these businesses going to get it?
people want versatility[doesnt play on dvd players yet costs as much as an in store dvd]
look at the pirate sites
good quality, plays in anything, no DRM.
it isnt rocket science what people want.
tip to wal*mart: 500kbps is *NOT* anywhere near dvd quality.
tip to HP: its your DRM and internet explorer only solution people aren't interested in.
clone a pirate site and slap a shopping cart on it[instant success]
--
You can never be too rich, too thin or have too much Bandwidth
TheMG

join:2007-09-04
Edmonton, AB

Price

No wonder this failed badly. For $20, I'd much rather walk over to the store and buy the damn DVD.

furlonium
Computer Over? Virus equals Very Yes?

join:2002-05-08
Bethlehem, PA
·RCN CABLE

Price

said by TheMG See Profile :

No wonder this failed badly. For $20, I'd much rather walk over to the store and buy the damn DVD.
No wonder this failed badly. For $20, I'd much rather down load it for free than buy the damn DVD.
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MrMoody
Under the black helicopters

join:2002-09-03
Smithfield, NC
·Embarq

Wal-Mart's DVD mail rental didn't last long either, it was a money loser.

In this case it wasn't Wal-Mart driving the high price, it was the content providers. The thought of downloadable movies makes them 1) paranoid about copying, while simultaneously 2) wanting to immediately cash in huge from it. The resulting DRM and high price results in no sales and kills it every time.
--
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elray

join:2000-12-16
Santa Monica, CA
·RoadRunner Cable
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You can't force folks to submit.

I'll gladly use a download service, even with DRM, if it is priced competitively with Netflix, and it works as well as a DVD.

The trouble is that between HP, Walmart and the studios, they get lost in the Chinese-arithmetic ("... if we can sell a sack of rice to a billion people ...") long before they bother to study the habits or preferences of the public.

They never bother to witness how DRM destroys a PC - how the average consumer will simply give up on the concept, long before they have the opportunity to be ripped $20 for a $3 rental.

And on pricing - while I know that consumers respond to "... as low as $19.99", for movie rentals, they really should promote the top-tier price ("No more than $4/movie") if they want to convince us to use their service.

wruckman
Ruckman.net

join:2007-10-25
Northwood, OH
Who goes to walmart online anyways?

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

Re: Junk anyways

now that they have sit eto store, lots of people.
Forums » Wal-Mart cancels movie download service

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