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iPod Movies: A Flop in the Making

Filed in archive Analysis by Marc on August 04, 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 links

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.

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Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/31031

iPod Movies: A Flop in the Making - 04 August 2006

High Definition Movie Trailer - viel zu sehen - 18 Januar 2007

Der 100millionste iPod ging über den Tisch - 10 April 2007

iTunes synchen: Schnell sein ist alles - 18 Juni 2007

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Rating: 7.5 out of 13 vote(s) cast.

Add your response to iPod Movies: A Flop in the Making: Response from: P2P so good Response from: Marc Freedman 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 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. Response from: coplace today the sitation on movie download market has changed a lot. netflix rules Response from: Movie Downloads Man 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? Response from: Hard Candy so good.! Response from: download movies So good, so nice :) Response from: download movies online Yeah, this is really good :) Response from: buy for sale I will buy apple iphone 3g soon on this social classified Response from: Frandys Chami 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...
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iPod Movies: A Flop in the Making

Filed in archive Analysis by Marc on August 04, 2006

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