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Pricing downloads

Escrito el 6 Abril 2006 por Ricardo Pérez Garrido en Contenidos / Content

How good is the revenue model of Movielink for movie purchases? How good is for customers? Prices will be the same you can find in any retail store – actually, probably worse, given the discount prices chains like Wal-Mart offer. The limitations include copies only for two additional computers, and in not compatible with the DVD formats… What is the real proposal? The films don’t even include the additional content that commercial DVD’s currently have. Is this a real, serious, approach to online sales or only a reaction, fast and not completely developed, to the rumors of an iMovies store?
The success of iTunes and the sales of TV series over the same platform (remember: iPods are small, and you cannot use the contents in alternative “gadgets”) have marked a road of additional contents to be sold with the same system: from courses to movies to whatever you can watch and hear.
The traditional strategy has been fighting illegal downloads. But that decision has created more confusion those solutions. The real solutions entered the market with a online store successfully selling contents, and collecting surprising numbers. Of course it was iTunes and the reality was a mix of fashion and technology. The social reaction to iPods and iTunes has been huge, and though most players have been trying to reproduce the success, at this point no one has been able to make it even close to their numbers. And that is a problem for the content owners: the initiative comes from a “gadget maker”, not one of them.
The owners of the contents (the big studios, that is) are willing to find a way to improve their profits from online markets and at the same time create alternative ways to face illegal downloads. The move might signal a first approach to really place a strong bet in a channel that shows signs of being their next big opportunity and replace DVD’s as the bigger market for the film industry.

Comentarios

Enrique Cabello 6 Abril 2006 - 15:14

Post it’s really huge but some ideas are to be brought to the table.

Firstofall, as it’s stated: ” … that is a problem for the content owners: the initiative comes from a “gadget maker”, not one of them”

I don’t see any problem at all but an edge. If content owners by themselves start designing their own “gadgets” we could face a situation were compatibility is lost. That could even cause that the same content is not suitable for different containers and therefore, the need of rebuying it several times to suit different platforms.

This will lead us to an uncertain situation where contents are to be designed for containers. Is SOny-PSII and their games facing the same situation? That’s a clear lost of flexibility when chaining content to containers. Is that free market? Do the content owners want to be chained? Who will manage the market: contents or containers?

Of course, from piracy point of view that’s a spotlight at the end of the tunnel but what’s the price for? Is Container market the same that contents market? Do they apply the same rules? Vertical integration is usefull or, welcome to joint-ventures? And what’s more we should bear in mind that even Sony is not succeeding. Who doesn’t know a friend of a friend who has seen illegal copies anywhere?

Regards,
Enrique cabello

Enrique Cabello 7 Abril 2006 - 09:03

Post it’s really huge but some ideas are to be brought to the table.

First of all, as it’s stated: ” … that is a problem for the content owners: the initiative comes from a “gadget maker”, not one of them”

I don’t see any problem at all but an edge. If content owners by themselves start designing their own “gadgets” we could face a situation were compatibility is lost. That could even cause that the same content is not suitable for different containers and therefore, the need of rebuying it several times to suit different platforms.

This will lead us to an uncertain situation where contents are to be designed for containers. Is SOny-PSII and their games facing the same situation? That’s a clear lost of flexibility when chaining content to containers. Is that free market? Do the content owners want to be chained? Who will manage the market: contents or containers?

Of course, from the piracy point of view that’s a spotlight at the end of the tunnel but what’s the price for? Is Container market the same that contents market? Do they apply the same rules? Vertical integration is usefull or, welcome to joint-ventures? And what’s more we should bear in mind that even Sony is not succeeding. Who doesn’t know a friend of a friend who has seen illegal copies anywhere?

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