XBL: Xbox 360 And Why DVD Rentals Are As Good As Dead

[nekon]

This is a nice little opinion piece on 360 digital downloads and their impact on physical movie rentals. While it isn't very technical I thought it was a nice read. I personally don't feel distribution is a threat as more emphasis is put on HD content. It's no threat because people won't accecpt HD Lite.. It's also no threat as ISPs aren't ready to hand over the bandwidth needed for a fair price yet. It's also no threat IMO as HSI is a joke for most of us and we'd be better served going to Blockbuster or waiting for Netflix. I've also included the article that inspired this one "Films on Xbox 360 threaten DVD rentals" below. Enjoy!

I’ve just read an article “Films on Xbox 360 threaten DVD rentals” and it got me wondering. Is Xbox’s digital distribution service really going to hurt DVD rentals? I’ve done another round of online research and the facts seem to point to one thing - digital distribution service is not something to underestimate. But will it replace DVD rentals in the near future? Not likely. Here’s why:

The main factor in online distribution is your internet connection speed - you don’t want to spend ages downloading your favourite flick while you can just drive to the store and grab it in less than fifteen minutes. And not everybody has a 1 MB per second connection. So it could take a while to hit mainstream. Then not everybody has an Xbox 360 The install base of Xbox 360 is just around ten million while almost everyone has a DVD player nowadays.

But, people with Xbox 360s are already making the switch to digital distribution and this is the place where it really shines:

You can start watching as soon as a certain percentage (called the buffer) is downloaded - enjoy it while the movie is downloading in the background (much like YouTube). The HD (High Definition) movies on Xbox Live feature much better compression so it takes up less space (and hence less download times) while maintaining a great picture quality at 720p resolutions. Besides, these rentals automatically expire so you have no worries of running out of hard drive space. And look at it this way - you don’t have to get your butt off the couch (or your house, for that matter) to rent a movie - how convenient!

And the digital distribution service of Xbox 360 is an inexpensive option to HD movies. You don’t need a HD-DVD or BD (Blu-Ray disc) player - just download and start watching (although I am assuming that you have a HDTV in the first place). As the format war rages between HD-DVD and BD-Discs, and with no clear winner in sight, digital distribution might be your only ticket to enjoy HD movies. You get to experience movies from both camps (HD-DVD and Blu-Ray Discs) without having to worry about compatibility. Disney has already signed to offer their BD movies collection - Warner Brothers and Paramount Pictures is soon to follow.

Microsoft has also reported that Xbox Marketplace has already moved $110 million worth of content in just 8 months - and that’s no joking matter! Sure, there is the potential, but I don’t see digital distribution as a real threat to DVD rentals in the near future.

Source: http://www.n4g.com/News-78006.aspx


Films on Xbox 360 threaten DVD rentals

Microsoft is set to launch a service which will let people download films at home via a games console.

It would mean movies could be watched at a much cheaper rate than buying or renting the DVDs or videos from high street stores.

Once a film had been watched, it would be automatically deleted from the system freeing up enough memory on the console to download more.

The service would also allow people to watch various TV programmes such as The Simpsons and other BBC series via the games console.

The computer company said it was in talks to provide the service via its latest games console, the Xbox 360, which will be in stores on August 24.

As the service would be cheaper than renting or buying, it could spell the end for DVDs and videos and their high street suppliers.

Microsoft said that it was in talks with major film studios such as Disney, Warner Brothers and Paramount to offer downloads for the service which will launch just before Christmas.

It also said that it was in talks with broadcasters such as the BBC and was hoping to provide a wide choice of favourite TV programmes that could be downloaded via the system.

Stephen McGill, the head of UK marketing at Microsoft said: "We want to offer a full catalogue of films, TV, music videos and games that people can download to their Xbox. This service has been very successful in the US and now we want to bring it to Europe."

The films are expected to cost between £1.50 and £3 and once the games console has been bought for just under £300 it will be far cheaper than buying or renting a DVD or video.

Blockbuster, the video and DVD rental store, charges on average £3.95 to rent a film while it can cost up to £10 to buy it from any high street store.

Microsoft hopes to be the first company to offer legal downloads via its games console although rival companies Apple and Sony are known to be working on similar products.

This type of service is far more common in the US where there is about 2,100 hours worth of films available to download from the Xbox.

Technology experts have warned that the move could seriously hamper the sales of DVDs and videos.

Tom Dunmore, a technology specialist from gadget magazine Stuff said: “If you could download a film you don’t ever need to buy a DVD or ever visit a high-street video shop.

"The content available will be the key to this service. If it is good, this could help change the Xbox into a living-room computer for music and film rather than just a games console."

Source: http://www.telegraph.co.uk/news/main...crosoft112.xml

[dog77_1999]

Well, the Live service isn't going to hurt any DVD sales. The market is expanding so everyone can have a slice. Very impressive sales numbers considering the user base. About 10 bucks per person on digital content.

I can definatly see MS strategy unveiling. The whole "Live" concept is apparent everywhere (XBox Live, Live Search, Live Marketplace). Could it rival the "i" in Apple? It very well could. I expect to see a box of some of electronic product meant for their digital distrubtion services. Though MS would have to break down the monopoly from the cable companies though. Not very easy considering they are just as big as MS.

[Everno]

It's no threat because people won't accecpt HD Lite..

Umm what are you talking about 720p looks great on my LCD?? I accept it every weekend just finished shooter HD on the MP. Im a huge fan of digital distro...The sooner they get rid of disks the better as far as im concern. I love clicking play and not having to return the movie to the store or worry about it getting lost or getting up to put another movie in. I want everything to be DD....music, movies and games. The COD4 beta and xbl demos makes the wait harder .....just click and play man.

[nekon]

Umm what are you talking about 720p looks great on my LCD?? I accept it every weekend just finished shooter HD on the MP. Im a huge fan of digital distro...The sooner they get rid of disks the better as far as im concern. I love clicking play and not having to return the movie to the store or worry about it getting lost or getting up to put another movie in. I want everything to be DD....music, movies and games. The COD4 beta and xbl demos makes the wait harder .....just click and play man.

"HD Lite is an informal term used to describe the re-transmission of HD content, at reduced picture quality compared to the source"

It's all about compression really. As for 720p as a HD res I personally don't think of it as such. The 720p res is only like 20 or so % better (unnoticeable) then the old PAL 57? res found on common DVDs. While 720p is fine on smaller screens I don't own anything under 50" or nativley outputs 720p. If they want to call it HD IMO it better be 1080 something cause 720p aint cutting it. Now you don't like going to the store yet you'll patiently wait for something to download? Who's your ISP? For the lucky ones who have muni fiber or fiber in general DD may not be an issue. For those of us with the more common ISPs, common speeds (slow), high prices, and bandwidth caps.. DD as a full on solution isn't really a viable option at this time and unless things start changing it may never be. ISPs in this country are in the practice of giving as little product for as much money as possible. With all the new bandwidth being gobbled up bandwidth caps are coming more into the mainstream. The problem isn't so much DD itself but the current state of HSI in the US. Without the infrastructure in place the service cannot function and in turn won't work. Then again there's the whole issue with actually owning something physical versus digital content on an HDD. Some people have a problem with that in itself.. HDD's fail.. ownership/transfer across devices.. piracy.. There are lots of things to stop DD from working anytime soon.

In the end a game demo or music CD is nothing in comparison to a HD movie. DD may work for the music industry or a few game demos but it won't for things like DVD9, blu-ray, or hd-dvd content.

[Novicegamer]

Well considering that I haven't rented a DVD in 6 months and have been renting them from XBL, it has made a impact IMO.

[dondidit]

LOL everytime I go to blockbuster new movies are always flying off the shelf or already gone. Has he been in blockbusters lately?

[MossadAgentO]

LOL everytime I go to blockbuster new movies are always flying off the shelf or already gone. Has he been in blockbusters lately?

Thats because blockbuster is going out of business and get 1 or 2 of each movie the rest go for their online service probally

[Sockpuppet]

I think torrents are more likely to destroy rentals. That and places like JB Hi Fi selling DVD's for $12, pay a bit more but you get to keep it.

[gansito]

Thats because blockbuster is going out of business and get 1 or 2 of each movie the rest go for their online service probally

Blockbuster going out of business? what planet are you living?

[mistagamer]

"HD Lite is an informal term used to describe the re-transmission of HD content, at reduced picture quality compared to the source"

It's all about compression really. As for 720p as a HD res I personally don't think of it as such. The 720p res is only like 20 or so % better (unnoticeable) then the old PAL 57? res found on common DVDs. While 720p is fine on smaller screens I don't own anything under 50" or nativley outputs 720p. If they want to call it HD IMO it better be 1080 something cause 720p aint cutting it. Now you don't like going to the store yet you'll patiently wait for something to download? Who's your ISP? For the lucky ones who have muni fiber or fiber in general DD may not be an issue. For those of us with the more common ISPs, common speeds (slow), high prices, and bandwidth caps.. DD as a full on solution isn't really a viable option at this time and unless things start changing it may never be. ISPs in this country are in the practice of giving as little product for as much money as possible. With all the new bandwidth being gobbled up bandwidth caps are coming more into the mainstream. The problem isn't so much DD itself but the current state of HSI in the US. Without the infrastructure in place the service cannot function and in turn won't work. Then again there's the whole issue with actually owning something physical versus digital content on an HDD. Some people have a problem with that in itself.. HDD's fail.. ownership/transfer across devices.. piracy.. There are lots of things to stop DD from working anytime soon.

In the end a game demo or music CD is nothing in comparison to a HD movie. DD may work for the music industry or a few game demos but it won't for things like DVD9, blu-ray, or hd-dvd content.

when it comes to HD viewing you are and will always be the extreme minority. you are an HD snob. the mainstream will never be HD snobs. so u express a taste that quite frankly doesn't matter in the grand scheme when u say 720 wont cut it.

all TV content is and will be broadcast at 720, so i find that statement to be ridiculous for any forseeable future. also, not one out the many people that have watched downloaded movies and hd-dvd have ever shown any displeasure in he former.

so for you and the HD snobs, 720 and downloaded HD content won't work. but your voice and view point will prove to be lost in the mainstream.

[skulpt]

Hmmmmm... Let's do some math.

As of 2006, (couldn't find a more recent source, the % will be higher), 82% of Americans owned a DVD player.

Let's round it up to 85% now seeing players are like $30.

There are 300 million people in the US....

255 Million people in the US then own a DVD player

6.5 million people in the US own a 360....

Not all of the 360 owners will download videos and tv shows. Let's be overly optimistic and say 75% of people on the 360 download videos (LOL! Not a chance)

4.5 million people in the US download content on Xbox Live.

There are 57Xs more people owning a DVD player than downloading 360 content.

It's not a big number guys. I think the time is coming when digital downloads will start to take over, but this is not the end of that just yet.

Brian

[Gbeav]

Internet speeds are not fast enough for any decent digital downloads. And the article stated not everyone has 1 MB speeds. 1 MB is crappy these days so whoever wrote it is behind the times, that's 1997 stuff.

But theres a tiny market somewhere for it. And I cannot comment on how good downloads look as it is not available outside of the US on Live.

[flynnrkdcc]

Internet speeds are not fast enough for any decent digital downloads. And the article stated not everyone has 1 MB speeds. 1 MB is crappy these days so whoever wrote it is behind the times, that's 1997 stuff.

But theres a tiny market somewhere for it. And I cannot comment on how good downloads look as it is not available outside of the US on Live.

I think the author was referring to 1MByte download speed or 10Mbit service, which is well above the average in the US. I think the idea of DD is great, especially for rentals. Although dependent on your ISP (I have a good one and get solid 6Mbit), it doesn't really take long to download movies to the point where the buffer starts. As fiber becomes more widely available and Cable companies start reaching the max transmission speed over the medium (over 30Mbit/sec), it is really going to make DD as a viable solution for its convenience. In terms of taking over DVD ownership, I do think that is a horse of a different color, as many people prefer to have some sort of physical copy, but I do see DD as the future of video rental, be it on the 360, Netflix, or some other company that makes the jump.

[Gbeav]

I think the author was referring to 1MByte download speed or 10Mbit service, which is well above the average in the US. I think the idea of DD is great, especially for rentals. Although dependent on your ISP (I have a good one and get solid 6Mbit), it doesn't really take long to download movies to the point where the buffer starts. As fiber becomes more widely available and Cable companies start reaching the max transmission speed over the medium (over 30Mbit/sec), it is really going to make DD as a viable solution for its convenience. In terms of taking over DVD ownership, I do think that is a horse of a different color, as many people prefer to have some sort of physical copy, but I do see DD as the future of video rental, be it on the 360, Netflix, or some other company that makes the jump.

I meant to also say 1 Mbps, 1 MBps is decent but still not fast enough.

[Aift]

Hmmmmm... Let's do some math.

As of 2006, (couldn't find a more recent source, the % will be higher), 82% of Americans owned a DVD player.

Let's round it up to 85% now seeing players are like $30.

There are 300 million people in the US....

255 Million people in the US then own a DVD player

6.5 million people in the US own a 360....

Not all of the 360 owners will download videos and tv shows. Let's be overly optimistic and say 75% of people on the 360 download videos (LOL! Not a chance)

4.5 million people in the US download content on Xbox Live.

There are 57Xs more people owning a DVD player than downloading 360 content.

It's not a big number guys. I think the time is coming when digital downloads will start to take over, but this is not the end of that just yet.

Brian

Wow, when you put it like that, discussion over

[beerfest]

I've never downloaded a movie from XBL service, I don't even know if you can in the UK or not, I've never tried to find out. I also don't rent movies either, I just wait till they come along on my subscription satellite service.

Most importantly, for me anyhow is I like to own the physical media. I've never bought music from iTunes and never will, just like I'd never pay for a movie download. If I really want it, I buy it, and if I get tired of it, I sell it on on ebay and get some of the money back - something you can't do with a download.

[mmcg]

This won't hurt DVD rentals or sales.

There just isn't enough 360's in the world for it to happen.

Unless there is a 360 in almost every living room in the world, then don't expect DVD sales/rentals to drop.