Trend: Downloadable TV

Innovative new services offer downloads of movies and tv-shows for the computer and mobile devices.

Trend Description:
Now that, consumers are used to streaming content, more and more providers start to offer whole tv-shows and feature-length movies. The download can take up to seven hours, but still: Providers claim their service to be more convenient. If you rent online, there are no DVDs or Videos to return. And buying a video online is by far cheaper than buying it in a store. Also it will come cheaper to purchase your favorite tv-show online instead of paying monthly fees for your TiVo or DVR – and possibly still pay for videos on demand. Now even big retailers like Amazon.com and Websites like AOL and Google started to sell videos and tv-shows online.

Cases:

AmazonUnbox
AmazonUnbox is the first major download service by an online retailer. Most movies will sell for $7.99 to $14.99, which is comparable to the Walmart prices of new releases. Most televisions programs are available for $1.99. Probably due to studio demands Amazon does not allow users to burn DVDs of the downloads. The high quality results in higher download times of up to seven hours. Amazon promises that there will be all current and back titles of major movie studios available, except Disney.

CinemaNow
Movies on CinemaNow cost between $9.99 and $19.99, the rental fee for 24 hours is $3.99 for new movies and $2.99 for all other movies, show case discounts can be as low as 49 cents. There is also a free video section. Just videos in the Burn-To-DVD section can be burned to DVD, according to the licenses given by filmmakers and content companies some movies might also be just for rent or to buy. Transfer to video iPods, PSP or other portable players is not possible so far. Also the selection of tv-shows is pretty small. The download is faster than on AmazonUnbox, due to smaller file sizes.

GoogleVideo
GoogleVideo consists of a video store and free videos. Like on YouTube users are able to upload their own videos and share them instantly with their friends. There is a top ten and a huge variety of topics to choose from, like music, trailers, comedy, tv-shows and education. Another interesting feature is the RSS feed.

Movielink
Movielink is a joint venture of Paramount Pictures, Sony Pictures Entertainment, Universal Studios and Warner Bros. Entertainment. Therefore most movies offered by Movielink are from these studios. Selected movies can be burned to DVD. As Movielink uses the digital rights management software from Microsoft and RealNetworks the Video on Demand-service only works on Windows 2000 or Windows XP as well as a current version of the Windows Media Player or RealPlayer. It is also just available in the US. Users can rent or purchase videos. Sales prices are as low as $1.99. Rented movies can be stored for up to 30 days, although they have to be watched in a 24-hour period.

Vongo
Like Movielink Vongo is just compatible with Windows-machines. The service-model is different. Vongo charges about $10 a month for an unlimited download of its content. So far there are 1000 movies and videos as well as streaming television, sports videos and music concerts licensed by Starz Entertainment group (the network behind channels like Starz and Encore). Vongo also over pay-per-view for movies and events.

Apple iTunes
With the version of iTunes7 Apple now also offers downloads of movies and tv-shows, next to games, podcasts, audiobooks and music. Whole seasons of tv-shows are available in one download. Once the user paid for the content he is free to use it however he wants. There is also a new archive feature, called “Back Up to Disc”, which will start a one-step back up everything from the users library on CDs or DVD-RS. Another new wireless gizmo, which will allow showing the movies on the hard drive on TV screens, will be introduced soon.

Trend Impact:
The introduced Video- and TV-on-demand services are just some of the huge variety of new content providers online. Possibly the big ones like Google, iTunes and Amazon.com will have a great chance to establish themselves as the leaders. As some movie-industry driven providers are not compatible with Apple they already lost the growing number of iPod-users, but time will show, what features the consumer will prefer. Probably the compatibility with portable devices will become more and more important. Also download times will play a considerable role, at least for now. The other big difference between the service providers is the business model: while the subscription-based service allows to watch as many movies and shows as possible, the buy-and-own it model allows to watch the purchased content over and over again. But as long, as most movies are not licensed to burned on DVD-R, users might not see the reason to buy a movie online for a couple of dollars cheaper, instead of going to a store and actually having something in their hands instead of having it until the hard drive is full. Also, NBC and other big networks are planning to put their shows online for free with advertising.

AmazonUnbox

CinemaNow

GoogleVideo

Movielink

Vongo

Apples iTunes 7

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