Walt Disney CEO Robert Iger on Tuesday said the company sold 125,000 movie downloads worth $1 million in revenue through Apple Computer Inc’s iTunes online music store in the first week Disney movies were offered.
Iger told a conference of analysts the company expects to take in $50 million in added revenue during the first year of the iTunes movie download program, which was unveiled by Apple on Sept. 12.
Iger said the number of films on iTunes would increase as Disney clears the broadcast rights to move them to the Web.
Iger told analysts at a Goldman Sachs conference that Apple CEO Steve Jobs, who is Disney’s largest shareholder and a board member, has become a “sounding board” for Disney’s rapidly expanding digital content delivery options.
“He is a great adviser and someone I can turn to readily for advice in a lot of these areas,” Iger said.
iTV photo by carldesigns.net
Iger said Disney stood to benefit from further content sales through its Apple partnership when the computer company rolls out a device, code-named iTV, in the first quarter of 2007 that allows consumers to stream movies, music, photos, podcasts and TV shows from the Web to home media systems.
Disney will place its content on other digital platforms but “we are choosy in terms of partners we pick,” Iger said. “We have to believe the platform is going to work.”
Some folks [not in my neighborhood] may think this isn’t a big number. I went back and checked the intro of iTunes music. The first-week numbers — and projections — were almost identical.
Now that Disney is in place and making money — while iTunes continues discussion/negotiations with others [including Google] — the mechanism probably looks a lot less threatening to yon yclept movie barons, our friends in the MPAA.
the mechanism probably looks a lot less threatening to yon yclept movie barons, our friends in the MPAA.
“yon yclept”?? 🙂
Anyway, I agree.
People are already complaining that the “prototype” iTV only has HDMI and component outputs for video – and no S-video or composite outputs…
http://tinyurl.com/zvaj9
So how come a device with no HD content available only has HDMI and component video out? No S-Video? No composite? No ch 3/4?
Answer: You keep the content-owners happy by closing the “analog hole”.
Then, and only then, will the content owners be willing to even start negotiating the rights to HD content.
They haven’t dogged Blu-ray & HD-DVD to add all kinds of DRM-protections to their hardware formats, only to give online distributors a pass…
Tee-hee. It’s probably been 40 years since I used “yclept” in a sentence.
#1
FYI, component signal IS analogic…
Disney, Warner Brothers Cartoons, et al do brisk business because adults not only buy the company’s licensed stuff for their kids but also for themselves! How many times have I met customers who have collections of Disney memorabilia, Super Hero action figures (dolls for boys), posters, screen savers of kid’s stuff. I’ve said it before, I’ll say it again: Americans have to grow up.
If you can’t burn to a DVD, it’s worthless, period. If you can’t watch it on a normal non-HD TV, its useless. If there is anything that you can do with traditional format DVD’s that you can’t do with iTunes Movies, it’s worth less than the original.
3 FYI, component signal IS analogic…
Yes, but… 🙂
…the percentage of VCRs and PVRs with component inputs is probably very small, because – until now – there has been no need for them.
A lot of people bought HDTVs with component inputs before HDMI became the darling of DRM-based connections [via HDCP]. So, they [grudgingly?] support that legacy connection.
Sony was quick to point out that the lack of an HDMI connector on their low-end PS3 wasn’t an issue for people wanting to play Blu-ray movies, because they don’t initially plan on setting the HDCP flag for movies released by their studios.
http://gear.ign.com/articles/709/709495p1.html
Where the pain will set in, however, is when Blu-ray movies begin making use of HDCP/AACS copy-protection and the infamous “Image-Constraint-Token” (ICP). At the demand of the major Hollywood studios, both HD-DVD and Blu-ray standards have been developed to support this next-generation copy-protection scheme that protects Hi-Def movies from piracy and illegal digital distribution.
Though most studios have agreed to a one or two year grace period in which the Image Constraint Token will not be implemented while American consumers make the switch to next-gen DVD and purchase HDCP-ready HDTVs and PCs, barring a massive retreat on the part of the Hollywood studios, HDCP and ICP are the future of Hi-Def movies, and the $499 PS3 will not be invited to the party.
The only remaining analog “hole” will be component – and they have a plan for closing it.
I am curious to see if much “real” HD content is released before a tipping-point is reached in the market – and HDMI-equipped sets have enough market penetration to allow turning-on the HDCP flag.
People being happy with the quality of SD-DVDs played back on upconverting DVD-players may allow the studios to stall on large-scale HD distribution until that tipping-point occurs.
Meanwhile, during Jobs demonstration of the iTV he played a movie in HD.
iTV represents a great device in a catagory with only a few below-average devices, which should be easier to dominate than the MP3 player market (of which Apple holds 80% market share).
This device is, clearly, aimed at higher end customers who have a need for HDMI or Component and no need for S-Video and Composite (in other words, it’s not about DRM or your daughter’s bedroom). This higher end catagory doesn’t have the need to burn DVDs, and recognizes the device as an extention of a system and not a system in and of itself.
Saying the product is worthless shows a lack of understanding of the marketplace.
The first iteration of iTV (typical Americans, they don’t see the lawsuit coming in the UK over this name that is already used by a TV network) will not be HD, or at least the existing TV/movie downloads are not.
The existing downloads are 640×480, so a bit less than DVD but comparable. At least better than the deplorable 320×240 originals from iTunes.
By the way, calling the service iTunes is a little counter-intuitive when you are trying to sell videos… Also, this service does little to appeal to the one-time use rental market.
My biggest complaint would be that you are constrained in how you use your movies. Apple and others in DRM-land live in a past where media jukeboxes (like my DVR in the living-room) don’t exist. The best way to go would be to load your kids’ favourite films onto the DVR and play them without fiddling with disks.
We’ll have to see if Apple can make this all easy enough to use (like they did with the iPod for music) that people will go for it. The first-week stats I would ignore. If it keeps up like that, well…
# 6 actually almost all Plasmas have component in… even those not HD (component is still in the standard def. realm…)
#7 If Jobs streamed a iTunes video, it was not HD… 640×480 is standard def, in fact is slightly less than DVD, because DVD can use full vertical res, using anamorphic encoded video. iTunes videos are always square pixels (so i’ve been told), so you get effective res 640 by 360 or 640×280.
No, it’s silly to say it is worthless.
If it can be hooked up to provide input to a DVR (mine takes a lot of different inputs) without DRM problems, macrovision, whatever, then it sounds useful (assuming you like to download pay movies in the manner that is suggested).
that’s 16:9 and 2.25:1 wide screen formar, respectively
7 This higher end catagory doesn’t have the need to burn DVDs, and recognizes the device as an extention of a system and not a system in and of itself.
Agreed.
“They” [not me] are the ones buying HD-camcorders, editing their footage with iMovieHD or FinalCutHD [or the WinXP equivalent], and then…what?
How are they watching that content now?
On their computer monitors?
By connecting their camcorders directly to their HDTVs?
By down-converting to SD-DVD?
It doesn’t matter how many of us have HD-camcorders now.
Technology companies need to plan for how many will exist next year, and the next, etc.
#6
“People being happy with the quality of SD-DVDs played back on upconverting DVD-players may allow the studios to stall on large-scale HD distribution until that tipping-point occurs.”
I am thinking that SD-DVDs combined with upconverting DVD-players (or TV’s) will be good enough for a vast majority of consumers. Why would many people spend a lot of money on a Blu-Ray or HD-DVD player for just a little bit better picture than can be had with an upconverting DVD-player?
I don’t get it.
Steve
Flames, in order.
#8
Typical Brit, thinking you matter. Jobs said “iTV” is a working title, and it will change.
#9
Didn’t say he streamed it from iTunes, but thanks for pointing out the obvious. The HD info came to me by someone watching in person.
#12
Wrong. “They” are the ones that own HDTVs and some form of HTPC, a much larger group than the one you map out.
The most importnant thing to me remains the price. I’m not paying $12.99 for a sub-quality iTunes download I can only use on my computer (I only have a 4th gen iPod.) So, for a couple bucks more I’m going to buy the regular DVD and play it everywhere. That includes converting it for my PSP and computer.
9 actually almost all Plasmas have component in… even those not HD (component is still in the standard def. realm…)
Yeah… they are not concerned with analog playback to a Plasma – or any other screen, they are concerned with analog recording – hence my mention of VCRs and PVRs.
14 Wrong. “They” are the ones that own HDTVs and some form of HTPC, a much larger group than the one you map out.
Hmm, I thought I was agreeing with you… I must have missed something…
I have an HDTV, but have not seriously considered a HD-camcorder because I don’t have a HTPC. The “iTV”, and its competitors, will change that.
But you can loop out video from your plasma via Scart or RCA plug…
And also there are signal converters too…
But I get your point. It looked fishy to me to that iTV had no “regular” analog output (PAL/NTSC composite or S-video). It’s definitely a plug on the analog hole…
#4
Those who grow up become bitter old people.
#14, I’m not a Brit…
However, you’re probably right, “iTV” is just a working title.
If not, lawsuits will determine who really matters…
(Was “Sladen” a British rock group? Is that the confusion?)
Also, it is a bit confusing, showing off a movie for iTV that can’t yet be downloaded from iTunes. But that was my point – this whole service is not well thought through. It’s got the wrong name (music-oriented) and you can’t buy all the pieces yet. The project name (iTV) cannot be used in the future for copyright reasons.
iTunes was much better thought through (although they didn’t seem to think at first that PC users would be interested).
Maybe that is what’s wrong here. They want to pilot this thing on Macs, hoping Macheads will download movies and just watch them in front of their computers. Maybe that will work for some but most people don’t have a couch in their computer rooms.
This vapourware (the iTV) will come out “early next year”. They should have waited and presented the whole thing at once. As I said, it’s not completely thought through. They must have been anxious to get their movie service out after others had already done so (Amazon).
Sladen, you are doing an excellent job of proving you don’t have a clue what you are talking about.
•The use of iTV in some other field does not necessarily mean it can’t be used as the name of the device, if Apple chooses to do that. The key would be whether Apple and the other user are in the same business. Arguably, they aren’t. (The Apple Corp. spent a lot of money on legal fees to learn that.)
• The ‘pieces’ of the iTunes digital download, software and iPod player are working quite well. Have pretty much taken the tech world by storm. Guess you slept through that.
• Most users of iTunes and the iPod are also Windows users. Anyone who thinks these products are targeted mainly to the Mac community is ill-informed.
• Apple made the early annoucement of iTV to encourage interest, stake a claim and forestall the rumor mill. Only a product that is never produced is ‘vaporware,’ so your claim that iTV can be termed that is ludicrous. If, say, a year passes, and no iTV device appears, then you would have a right to make that claim. But, not now.
• The iTunes movies announcement had been planned for a long time. (Heck, there were iTunes movie download cards available at Target less than a week after the annoucement. )
You seem to be under the impression that you need to ‘educate’ us Yanks. Unfortunately, before one can teach others he must educate himself first. Read more and post less.
Podesta, my “Yanks” comment only pertained to the use of “iTV” – which is a TV network, so Apple should get the lawyers ready.
I’m a North American, too. No attempt to educate anyone here.
The rest of the comment you make are pretty much correct.
I find the iTunes (for music) and iPod to be a big success, no argument there. I have no idea if they will be for movies as well.
The “early” announcement of iTV is an odd thing from a company that is as “together” as Apple is. I accept that it is meant as a teaser, however, as well as to exlain just what the heck you will be able to do with these downloaded movies. Explanation definitely necessary.
Other companies have done a questionable job on this movie download thing. Apple will probably show them how it should be done.
No Apple or Mac hater here, I assure you.
I just want to amend an earlier comment to say it is probably more typical of COMPANIES in America (not Americans) to not consider conditions in other major markets (like the UK) before naming a product (however temporary that name is).
So now we can permanently name the thing BBC and no harm done.
Ha, they just dont get it… We Want SPINACH, DRM free, when will they learn?
19 iTunes was much better thought through (although they didn’t seem to think at first that PC users would be interested).
I disagree.
Apple had to get their DRM working on their own platform – a piece of cake.
They then had to get the ITunes software and DRM working on Windows – probably not quite as easy…
And iTunes/Quicktime are the only examples of Apple software running on anything other than Apple computers – for reasons which should be obvious.
Get it working on Macs, get iPod integration working, get the content providers to agree on the concept and the pricing, see if it is as profitable as you hope, get big bugs and bottlenecks solved – all while running on a platform that only has “single-digit” market penetration.
Once that “beta” testing is complete, let the crowds in… and start printing your own money. 🙂
Kinda the reverse of games on the Mac – where the WinPC market crowns the winners, fixes all the major bugs, and then ports some of the popular, de-bugged games to the Mac.
Its like living on the Left Coast of the US during a Presidential election – lots of candidates entering the early primary battles, but the field being whittled-down to a couple of “electable” ones by the time we get to vote.
Apple’s Bootcamp should have a profound effect on Mac gaming, so now we just need a national primary for elections… 🙂
Looks like DRM’d HD is coming sooner than we thought. Sony will include the HDMI interface on all PS3s, even the “cheap” ones.
http://tinyurl.com/lmv3a
Moreover, he said, the less expensive models will now include HDMI output ports. HDMI’s “time has come earlier than expected,” Kutaragi said, conceding that the high-definition output port was considered extravagant when first announced, but necessary now as the adoption rate of HDTVs continues to grow.