Filed in archive Analysis by Marc on August 4, 2006

The Diffusion Group conducted a study on consumer price sensitivity fir movies on iPods. They found a sweet spot at $10 where 23% of U.S. broadband users said they'd be interested in buying a movie download on iTunes. Interest rapidly declined above that price. Interest was 12% for a $20 flick.

Current digital movie downloads are $20 at MovieLink and CinemaNow. A discount to $10 is reasonable given the small iPod video display. Variable pricing by fidelity and output device makes sense. But the studios and labels don't generally license digital entertainment this way.

Steve Jobs and Apple were able to extract concessions from the recording labels for flat $1 digital download singles. The result was a great consumer success. Will they be able to pull off a similar deal for $10 iPod downloads with the studios?

Unlikely. Current talk is that Apples is at $14 and studios want $15. So it looks like a loss for everyine involved.

Related Entries:

Konkurrenz für iTunes und iPod - von Google, Amazon, Microso... - 11 February 2006
iPod Movies: A Flop in the Making - 04 August 2006
High Definition Movie Trailer - viel zu sehen - 18 January 2007
Der 100millionste iPod ging über den Tisch - 10 April 2007
iTunes synchen: Schnell sein ist alles - 18 June 2007

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Permalink: iPod Movies: A Flop in the Making

Tags: apple ipod itunes movie digital flop+making movies+flop ipod+movies

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Vote for iPod Movies: A Flop in the Making:

Currently 7.60/10
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Rating: 7.60 out of 15 vote(s) cast.

Response from: P2P (08/05/06 2:50pm)

so good

Response from: Marc Freedman (08/29/06 2:24am)

Bill,

There is no denying the kids market could be large. But your argument supports mine. Kid flix are exactly the kind of movies parents want as an owned download, not a rented stream. But Hollywood is not going to license major flix for $10 per my article and certainly not for $5 per your comments.

Marc

Response from: Eutychus (09/26/06 7:16pm)

I think you are right, pricing is very important to the success of on-line movies. I bought one movie to try out the iTunes movie store. It worked flawlessly. But 12.99 is too much unless we know we want to keep the movie for future viewing. We will buy Cars from iTunes but use Netflix for the rest.

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Response from: coplace (10/03/07 4:42am)

today the sitation on movie download market has changed a lot. netflix rules

Response from: Movie Downloads Man (11/04/07 7:34pm)

So let me get this straight…they’re COMPLAINING that they no longer have to do anything related to the manufacture, distribution, storage and sales processing of their product and can just focus on content? HELL NO!

OMFG…will this ever end?

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Response from: buy for sale (08/28/08 12:19pm)

I will buy apple iphone 3g soon on this social classified

Response from: Frandys Chami (10/14/08 2:46am)

Any movies you can watch on your computer can be converted to the corect format for the ipod. If you already have a movie on DVD, it can be converted as well. Do a search for "DVD ripper" to get the software. Convert it to the the corect format. Upload to your ipod...alot easier said than done
Or, I found a site where you can pay once to get the software, movie download sites, documentation and tech support at
http://www.80millionmoviesfree.com

Response from: Digital Music - The Future

Apple is and remains excellently positioned in video as it is in audio for two reasons. 1. Customer focus. This is a synthesis of factors, branding, styling , user interface, and behavioral integration (fitting into how people normally live and...