Film distribution has exceedingly more platforms for reaching the audience, and multiple options had already emerged to deliver access to content through mail, downloading, rental, subscription, set-top box systems, and manufacturing-on-demand services. Powerful partnerships had already been formed, with substantial resources to pursue joint efforts. Even though Apple TV rentals are now available from all major movie studios and TV networks, studio executives are much more aggressive about protecting content rights. Unless agreements benefit their distribution objectives and maximize the value of their releases, retaining content contracts for Apple TV will remain challenging. Apple's dominance and relative power in the music industry (as well as Jobs' reputation for control) may build resistance among film producers who are accustomed to maintaining their own levels of control over content. Apple TV has been completely redesigned, and company executives are predicting a promising future for the device. Meanwhile, Apple faces the following competition in the VOD market. Competitors Offers Notes Amazon Unbox 90,000 movies/shows/etc. Incompatible Promotes vendor device sales Cinema Now 10,000 movies/shows/etc. Early entrant PPV Incompatible w/ Apple or non-MS $30 per month + hit rentals Internet explorers #1 ranking 2010 for variety, availability, and ease-of-use Disney/Hulu Disney Studio library Jobs is a major Disney shareholder Digital content distribution services Netflix Rental and streaming 20 million subscribers increased – Value offering during recession Strong brand recognition and value Agreements with PayTV channels and networks Investing heavily in streaming Expanding internationally Wal-mart/Vudu Value rental Aiming for unprecedented access More movies than VOD All” immediacy, affordability, “Cure – providers access/selection, and direct U.S. only delivery to the viewing device Promotes vendor device sales Warner Brothers New venue Facebook To preserve value of content from – ala carte PPV rentals studios’ perspective Enormous potential for content providers Viewing difficulties Apple offers 350,000 apps to use with the iPod, iPad, and iPhone. Applications – It has recently introduced a radical new subscription plan for content-based apps –
Film distribution has exceedingly more platforms for reaching the audience, and multiple options had already emerged to deliver access to content through mail, downloading, rental, subscription, set-top box systems, and manufacturing-on-demand services. Powerful partnerships had already been formed, with substantial resources to pursue joint efforts. Even though Apple TV rentals are now available from all major movie studios and TV networks, studio executives are much more aggressive about protecting content rights. Unless agreements benefit their distribution objectives and maximize the value of their releases, retaining content contracts for Apple TV will remain challenging. Apple's dominance and relative power in the music industry (as well as Jobs' reputation for control) may build resistance among film producers who are accustomed to maintaining their own levels of control over content. Apple TV has been completely redesigned, and company executives are predicting a promising future for the device. Meanwhile, Apple faces the following competition in the VOD market. Competitors Offers Notes Amazon Unbox 90,000 movies/shows/etc. Incompatible Promotes vendor device sales Cinema Now 10,000 movies/shows/etc. PPV $30 per month + hit rentals Early entrant Incompatible w/ Apple or non-MS Internet explorers #1 ranking 2010 for variety, availability, and ease-of-use Disney/Hulu Disney Studio library Digital content distribution services Jobs is a major Disney shareholder Netflix Rental and streaming Value offering 20 million subscribers – increased during recession Strong brand recognition and value Agreements with PayTV channels and networks Investing heavily in streaming Expanding internationally Wal-mart/Vudu Value rental More movies than VOD providers U.S. only Aiming for unprecedented access “Cure All” – immediacy, affordability, access/selection, and direct delivery to the viewing device Promotes vendor device sales Warner Brothers New venue – Facebook ala carte PPV rentals To preserve value of content from studios’ perspective Enormous potential for content providers Viewing difficulties Applications – Apple offers 350,000 apps to use with the iPod, iPad, and iPhone. It has recently introduced a radical new subscription plan for content-based apps –
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