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Thursday, December 14, 2006

Long Tail Should Wag Net Movies

Apple will soon be jumping into the movie download business, and I said in September, it probably won't help the company's stock much. With iTunes sales falling faster than Michael Richards' career, Apple's media division might be in for some tough times.

What Apple, and everyone else who is trying to sell movie downloads, should realize is that the only way to battle video stories and movies on demand is through better selection and pricing AND being able to watch movies on the TV.

With big screens selling like crazy, for most people watching a movie on their PC is lame by comparison. For movies that were released within the last six months, online movies will never best Blockbuster, and Netflix is even more convenient. But by focusing on the long tail of movies and making them shareable with the TV, online video stores could land a starring role. Blockbuster's stores have limted rack space that every day becomes dominated by fewer and fewer titles. But servers can host much more content at a lower cost, and that is the only way to beat the video store.

Like a reverse SlingBox, you should be able to watch any movie download on your TV through a wireless connection, or even download it straight to your DVR. While it is impractical for CinemaNow or Movielink to offer every movie, they could rotate through niche categories based on customer response. For example, ask customers if they would prefer to have access to every movie from John Huston, John Waters, Johnny Depp, or John Ford during the next month, and whoever gets the most votes wins.

Movies alone probably aren't enough of a sell, so any company needs to also corral YouTube videos and TV programs as well, which will be a challenge.

So which company is in the best position to dominate the downloads to TV market?

Time Warner: Through AOL, cable companies, and it's extensive TV and movie library, TW could focus many eyeballs on a video service.
Comcast: They have DVRs in millions of homes ready to accept content, but they would need to develop an Internet presence to expand beyond their current customers.
Apple: They have licensing agreements with content providers and know about streamlining RSS video and audio content, and have experience with home networking, but they would have to be more generous with their partners than they have been in the past.

Also in contention: Yahoo's media focused portal, and the aforementioned movie download services.

Posted By Jason Dowdell at 12:55 PM
Permanent Link: Long Tail Should Wag Net Movies | Comments (1)

(1) Comments on Long Tail Should Wag Net Movies

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Comments by BenP : Thursday, December 14, 2006 at 06:49 PM

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