iTunes Store sells 125,000 movies in first week | iLounge News

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iTunes Store sells 125,000 movies in first week

Apple sold more than 125,000 movie downloads in the first week that full-length movies were available from the iTunes Store. Disney accounted for all of the movie downloads, which Disney CEO Robert Iger said brought in $1 million in revenue for the company. Apple added 75 movies from Disney and three of its studios—Pixar, Miramax Films and Touchstone Pictures—to the iTunes Store last week following a special event in San Francisco. Iger said he expects the iTunes movie downloads to generate $50 million in added revenue during the first year.

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Comments

1

MPAA: “wahh! If we release movies online, people won’t buy them. They’ll pirate them and we’ll lose all our money!”

- - -Seems like someone was wrong about that.

Posted by Wilder_K_Wight on September 19, 2006 at 5:41 PM (CDT)

2

Great numbers, but Disney is just moving their money from their front pocket to their back pocket.  The 125,000 people who downloaded the movies aren’t gonna go buy the DVD as well.  The studio will get some gain as some people replace movies they’ve already bought, but ultimately it’s a zero sum gain.

Posted by Talking Madness in Los Angeles on September 19, 2006 at 5:54 PM (CDT)

3

but maybe those people who bought it from iTunes would’t buy it on DVD when it comes out. so it could be a plus. a very big one.

Posted by Pilot on September 19, 2006 at 6:18 PM (CDT)

4

I’m one of the 125,000. I bought National Treasure, and had no plans to own the DVD.

My daughter (who owns a pink Mini) has already told me she wants a 30gig 5G+ now so she can carry Pirates with her everywhere she goes. Pirates is already on our DVR.

Posted by Once of 125,000 on September 19, 2006 at 6:48 PM (CDT)

5

Pilot-

I respectfully disagree.

Posted by Talking Madness in Los Angeles on September 19, 2006 at 7:50 PM (CDT)

6

One BIG thing to consider with this too, there’s still LOTS of people that haven’t even upgraded to iTunes 7 yet.  All those people that initially don’t upgrade till the first version comes out and they find and work out all the bugs.  Then there’s all the people that don’t think about that, but stil haven’t upgraded because of all the bugs that are being found.

In every sense of the word… “This is just the beginning”.

Posted by LilAlienD in Maryland on September 19, 2006 at 7:59 PM (CDT)

7

One of 125,000-

Of course your daughter wants a 30gig 5G+...everybody wants one.  You’re just lucky she doesn’t hit you up for an 80gig so she can carry Pirates 1, 2 & 3 with her.

Posted by Talking Madness in Los Angeles on September 19, 2006 at 8:02 PM (CDT)

8

i have never bought a dvd in my life but just bought 2 movies from the online store.

wicked!

Posted by stevo on September 19, 2006 at 8:25 PM (CDT)

9

Hmmm.  Let’s do the math.  1 Movie studio - 125,000 movies x 52 weeks = 6,500,000 movies.  I wonder what studio is next.

Posted by BilMur on September 19, 2006 at 10:45 PM (CDT)

10

Certainly, some of these downloaded movies will cannibalize other sales, just as they have throughout history whenever new markets appear for existing products.

However, having additional markets has always led to increased sales, when all other factors are equal. Many people who buy these movies would have bought the DVD anyway, but “impulse” purchases are made based on availability. And I can impulse purchase a downloaded movie anytime I’m at my computer firing up the iTunes Store.

Personally, most of the music that I’ve bought through iTunes (over 600 tracks) is stuff that I NEVER would have bought on a packaged CD. Some of those purchases were solely because I could choose a single song rather than an album, but many of them were impulse purchases that I otherwise would NOT have made.

I can imagine doing the same thing with downloadable movies. I bought “Toy Story” last week to test drive the new movie store, and I was impressed. I foresee myself buying more films this way as they become available.

I agree with Talking Madness that the $1 million isn’t entirely new revenue. But I disagree that it’s a zero sum gain ... a percentage of downloaded films will be “new” sales that wouldn’t otherwise happen. And this market is only going to get bigger.

Posted by BJ Nemeth on September 19, 2006 at 11:28 PM (CDT)

11

I sort of agree with BOTH pilot and Talking Madness. I confess I did buy a movie off of iTunes, and it as pilot suggested I wasn’t going to buy it on DVD. But to Talking Madness’ point, not sure I’d do it long term. Its just too damn pricey. If Disney/Apple matched the pricing of what I could rent the movie for at Blockbuster, then they would be getting an incremental sale out of me. I’d pay $5 on a regular basis for movies when I travel or to see a movie that I (but no one else in my household) is interested in seeing. But $12.99, no way. Downloading off iTunes is convenient but not enough to offset the price. At these prices I think it will go the way of UMD movies, once the novelty wears off, without a severe price adjustment sales will plummet.

Posted by Rand on September 19, 2006 at 11:28 PM (CDT)

12

Having said that (see long post above), I think downloadable movies are the LEAST interesting part of the iTunes store.

Selling music on a per track basis for 99 cents each was a HUGE paradigm shift for the music industry.

Selling previously-viewed (and previously free) TV shows was a BIG paradigm shift for the television industry. (They had made a little progress in this area, offering previous seasons on DVD, but iTunes made it much more immediate.)

Music and TV shows on iTunes have been wildly successful. (Music videos for $1.99 has been a relative bust.)

(Even the addition of Podcasts has been a big success and changed the marketplace for radio, although on a much smaller scale.)

Compard to TV and music, selling downloadable movies doesn’t change much for the market or the consumer. Before iTunes, you couldn’t buy a single song. Before iTunes, you couldn’t buy last night’s episode of “Lost” or “The Office.” (Without buying bootlegs on eBay or something like that.)

With movies, consumers are getting fewer features (no DVD extras) at a lower quality. The ONLY advantage is convenience.

I still expect downloadable movies to succeed, but they won’t change the marketplace the way downloadable songs or TV shows did.

Posted by BJ Nemeth on September 19, 2006 at 11:42 PM (CDT)

13

One day (probably relatively soon) all movies and TV will be served up through the internet/on demand, but I just don’t think the infrastructure is there yet.

I agree that the movies are the least interesting area of the iTunes store for the exact reasons BJ Nemeth gave. I just dont see the average consumer “getting it” as much as something like music. Even Mr Jobs has his doubts I think. Maybe the iTV will make a difference?

I think maybe quite a few people will have downloaded movies this week just to try it out. I mean how many blog entries/articles have there been detailing what it is like!

I think there are too many downsides for the average consumer or technophile at the moment. It’s not that great quality, it’s not that convienient and it’s not that good value.

I’d still like the option to buy them over here in the UK though ;)

Posted by robroe in Manchester, UK on September 20, 2006 at 6:06 AM (CDT)

14

some of the best discussion i’ve seen on here for a while…

(and i’m not adding to it w/ this….hrm…)

Posted by OnlyShawn on September 20, 2006 at 8:19 AM (CDT)

15

Movies will not be available on iTunes before the DVD comes out.  Personally, if I want to own the movie, I’d buy the DVD, and not the iTunes movie.  DVD has much better quality, 5.1 surround sound, extra features, etc.

I will probably buy one or two iTunes movies for my small kids, just to check it out, but will not regularly buy the movies, for much the same reason that I don’t regularly buy music, preferring to buy the CD:

Price is not that much cheaper
No DRM on CD / DVD
Much better quality
Not locked into Apple iTunes / iPod

Posted by kokketiel on September 20, 2006 at 9:08 AM (CDT)

16

I would consider buying a movie if I was taking a trip and wanted something to watch on my video iPod, but didn’t have the hours and hours it would take to convert from the DVD I already own. There are others who would probably do the same.

Posted by bookcase on September 20, 2006 at 11:46 AM (CDT)

17

The biggest problem all the video download services will face is storage.  The files are just too big even at the relatively low resolution they’re being offered at by both iTunes and Amazon.

You’ll notice that a huge part of Apple’s marketing strategy when they released the iPod was to brag about how many songs you could carry in your pocket with an iPod, but there’s no mention of that when it comes to these huge video files.  Why?  Because you can only carry a few.

With the average episode coming in at about 500MB, let’s say you bought a new MacBook that shipped with the 60GB drive and you’re a fan of everything ABC/Disney (Lost, Grey’s Anatomy, Desperate Housewives and the Disney movies of a particular year).  That’s 66 episodes of TV and about 12 movies…assuming TV episodes average 500mb and movies average 1.5GB…that’s 51GB of data.  Your MacBook is now full with nothing else but the OS on it.

So, what do you do?  You start burning the files to DVD’s for backup storage and that’s when you realize you shoulda just bought the DVD.  The time to download the content, the time to back the content up, and the fact it’s not as good as a standard DVD will weigh heavily on people.

Posted by Talking Madness in Los Angeles on September 20, 2006 at 1:03 PM (CDT)

18

Talking Madness is right—for the studios, this is a 0 sum game.

And will be, until they realize with the dramatically reduced cost of producing video for iTMS they can release things that would never sell on DVD.  Disney’s quite fond of the DVD market for being inexpensive compared to theatrical releases, and often exploits this for inexpensive sequels to their popular animated films.  Now there’s an even cheaper method of release, with an ostensibly higher margin, that could lead to new opportunities.

Posted by dasmegabyte on September 20, 2006 at 1:14 PM (CDT)

19

125,000 in 7 days is about 12-13 per second! How does that compare to retail, anyone?

Posted by deejay.xil on September 20, 2006 at 1:29 PM (CDT)

20

Um, that’s 12-13 per MINUTE.

Posted by Chucklenuts on September 20, 2006 at 9:01 PM (CDT)

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