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Let's go to the Videotape! No, let's download instead

Max Headroom.jpgYesterday TechCrunch hit the ground running with an article on the advent of Amazon's new video download service called Unbox. The story repeats the current theme of "it's great to download video, but the process is DRM restrictive and loads slowly". Itunes and many other companies are about to release more download web services but let's face some important facts:

Limitations:
Desktop software is required to view the videos and it’s Windows only
Videos may not be burned to DVD (other than as backup - they will not play in a DVD player)
For rentals you must view a video within 30 days of downloading it, and within 24 hours of beginning to watch it.
USA customers only. In the age of globalisation, this is beyond the pale.

Pricing:
To buy - TV episodes are $1.99, most movies are between $8 and $15, some are $20
To rent - Rentals are $1.99 or $2.99

Ok. We all know the pricing will come down, however the most successful strategy to date the movie companies had was realising videotapes and DVDs weren't a business killer, but rather an opportunity to increase revenue beyond belief by offering a solid product at a reasonable price packed with extras the cinema going public didn't have before.

Call me old fashioned, but I don't see any value in paying the same price for what amounts to a slow loading, protective format binary file. The other point is people want something real. Movie consumers have been head over heels on building up collections, whether VHS, DVD, 8-track, CD, etc and always will be. These early download services lack incentive to adopt file based content distribution.

The question is simple, do you want a file on your PC to watch, or media you actually own in physical form?


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