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Cringely on Blockbuster-iPod Video Distro Plan

MrPerfekt writes "In this week's Cringely column, another one of his hypothesizing sessions actually seems plausible. Blockbuster's retail outlets make good sense for Apple to partner with them for video iPod content distribution. From the article: 'Take your Video-out iPod to Blockbuster, drop it in a kiosk dock then download from the local xServe your choice of 50,000 movies. You can rent the movie or buy it and you can even choose the resolution, which may or may not affect the final price. Take the iPod home, drop it in the dock attached to your TV and watch the movie. H.264 decoding takes place in the iPod in hardware.'"

21 of 218 comments (clear)

  1. Cringely's on crack today. by jcr · · Score: 2, Insightful

    Drive to the Blockbuster to load up your iPod? When I have a perfectly good cable modem connection? Can you say "Akamai", boys and girls?

    Blockbuster has nothing whatsoever to offer Apple if and when Apple decides to go into the full-length, hi-def movie business.

    -jcr

    --
    The only title of honor that a tyrant can grant is "Enemy of the State."
    1. Re:Cringely's on crack today. by FirstTimeCaller · · Score: 5, Insightful

      ... I have a perfectly good cable modem connection

      If you RTFA you'll see that this is intended to extend iPod sales to those who do not have broadband access (or even a computer). Yes, believe it or not, such people do still exist.

      --
      Wanted: witty unique signature. Must be willing to relocate.
    2. Re:Cringely's on crack today. by seinman · · Score: 2, Insightful

      Yeah, because it's IMPOSSIBLE for Apple to change the way iTunes and iPod work for this instance if they make a deal that big. I forgot that software can never be modified!

    3. Re:Cringely's on crack today. by tshak · · Score: 5, Insightful

      I "only" have 1.5Mbps downstream connection. I don't want to wait 3-5 hours to download a high quality video. I also don't want my connection virtually hosed for half an evening. I would rather take a few minutes to walk or drive to the nearest blockbuster and load it up in less than a minute. I would probably need a connection with a solid 8Mbps downstream before I would consider the download times reasonable. Then again, for HD-DVD content, we're probably talking about 20GB+ in which case 8Mbps is way too slow. It's a great ideal to download content over broadband, but the infrastructure just isn't there.

      --

      There is no longer anything that can be done with computers that is nontrivial and clearly legal. -- Paul Phillips
    4. Re:Cringely's on crack today. by CyricZ · · Score: 2, Insightful

      I know you're very well off, Mr. Randolph. From what I gather, you have made quite a fortune between your work in the computer industry and your investing. But not everyone is nearly as lucky as you are.

      Not everyone lives in a house or tenement with cable Internet or DSL, for instance. Even in some suburbs cable is not available, and if you're in a rural area, it likely won't be available for decades. The same goes for DSL.

      And while there are many people who do have such services available to them, but choose not to subscribe. Why pay a significant enough fee if you're only going to use it to obtain movies for your iPod every now and then?

      For people in such a situation, being able to go to their nearest Blockbuster might be their only option, if not their preferred option.

      --
      Cyric Zndovzny at your service.
    5. Re:Cringely's on crack today. by SteeldrivingJon · · Score: 2, Insightful

      "Thus, the only market will be for people who don't have internet or cable."

      And people who can't get broadband internet or cable probably don't have a Blockbuster nearby.

      --
      September 2011: Looking for Cocoa/iOS work in Boston area Cocoa Programmer Quincy, MA
  2. Doubtful Business Model by davidbofinger · · Score: 4, Insightful
    Take your Video-out iPod to Blockbuster, drop it in a kiosk dock then download from the local xServe your choice of 50,000 movies. [...] For Apple the point here is to sell iPods to people who might not otherwise every buy one (my Mom, for example), to bring digital downloads to people who don't have broadband or even a computer, and to make it all incredibly easy.

    But borrowing a DVD is already incredibly easy. About the only way this is easier is that you don't have to return the DVD and I don't think that's enough. Apple would be asking its customers to spend hundreds of dollars (?) on a piece of hardware that would be doing more or less the same job as the DVD player they already own.

    It's probably a reasonable why-not idea, for those who already have an iPod. But I can't see it attracting a lot of new customers.

    1. Re:Doubtful Business Model by Anonymous Coward · · Score: 1, Insightful

      borrowing a DVD may be easy, but storing them and having enough stock for customers during new release is not. if you only have to keep redistributing bits, then this makes a lot of sense for the non computer owning market. Heck, it makes sense for all those who dont know that they could even pssibly download or use their computer for such things. The idea has appeal: "never wait for new releases, dont pay late fees. just buy this gadget (which by the way is uber-chic and plays music too) and problem solved."

  3. hmmm iPod or DVD by Anonymous Coward · · Score: 2, Insightful

    based on Cringley's latest "predictions" ie.. google advertising on tv? not anytime soon.. blockbuster having "docking" stations for ipod's? nope sorry.. cringley is waaaaay wrong lately..

    first of all apple hasn't sold enough video ipods for blockbuster to even think of making a kiosk.. and second everyone has dvd players dummy.. you dont need a 400$ portable device to rent a movie.. you simply take the piece of plastic home with you. Maybe your saving the customer a return fee but why not save the customer from going to the store all together and download the movie from itunes? The customer with an ipod already has a kiosk its called a PC.

  4. Day late, dollar short by everphilski · · Score: 1, Insightful

    Sorry Cringely, http://www.blockbuster.com/homepages/LoadBlockbust erHomepage.action

    Blockbuster is already picking up the Netflix model and supplanting it with free in-store rentals.

    1. Re:Day late, dollar short by Anonymous Coward · · Score: 1, Insightful

      It really helps to RTFA, espcially the second paragraph of said article. To wit:

      "The problems at Blockbuster are simple. The company has high inventory and real estate costs compared to either NetFlix's super-efficient rent-by-mail operation or to just about any of the many emerging digital distribution plans. Having that Blockbuster shop just down the road used to be a huge advantage for the chain, providing easy proximity to viewers. But NetFlix comes straight to your house and even though Blockbuster now runs its own NetFlix-type service, those stores aren't (yet) going away, so it can never have NetFlix-like efficiency."

  5. More on Burst.com by dgrgich · · Score: 3, Insightful

    Notice that Burst.com also announced that they are waiting another month to file their counter-claim to Apple's original suit.

    What does this mean?

    1. Burst.com needs more time to get their ducks in a row?? - Not likely. Any patent attorney worth their shiny shoes could have seen this stink with Apple coming from at least 946 smoots away. I can't imagine that Burst.com didn't anticipate Apple's suit and thus, they know how to reply.

    2. Burst.com is stalling for time in case someone else is going to buy them in the near future - Why would Sony or Microsoft swoop in now when they didn't all of last year? They've got their own dudes with shiny shoes who are advising them to wait on the sidelines. I'm postive that no one in high-tech thinks that Burst.com's patents are valid -- however, someone has to jump in and sue. If Apple does, let 'em. Sony and Microsoft and Amazon and NetFlix and Blockbuster and . . . . insert old media company here . . . will jump in the pond after Apple's determined the water temperature. No one ELSE is going to buy Burst.com until this thing is clear.

    3. Burst.com and Apple are working out a deal - Now this one . . . I think I can smell. Apple's suit is a great opening chess move. I can see Burst.com demanding a hefty licensing fee that amounts to something silly like amounts that have more than 9 figures or huge amounts each year. I'll bet Burst.com even has the moxy to think that their patents are worth hundreds of millions alone. What better way to get good terms for Apple than to file a suit? Dare Burst.com to go to trial . . and risk losing the patents . . . or settle on a lower licensing fee or selling price.

    I'll bet at least my own shiny shoes that these suits are just negotiating by other means.

  6. Because not everybody can get broadband by tepples · · Score: 2, Insightful

    Why would I want to drive to the nearest Blockbuster location when I can download an iPod movie from the comfort of my very own cable modem?

    If no cable company is willing to run Internet access to your geographic area, or you are otherwise happy with dial-up, then getting high-speed Internet access just for downloading movies may be more expensive than a DVD rental by mail subscription, and given the price of urban real estate, moving house is even more expensive.

  7. Re:Doubtful Business Model the prequel by microcars · · Score: 5, Insightful
    "...Apple would be asking its customers to spend hundreds of dollars (?) on a piece of hardware that would be doing more or less the same job as the DVD player they already own."

    Change DVD player to CD player and go back a few years.
    Now how does this blurb about the iPod sound:

    Apple would be asking its customers to spend hundreds of dollars (?) on a piece of hardware that would be doing more or less the same job as the CD player they already own.

    terrible business model....

    --
    I like microcars
  8. Re:Doubtful Business Model the prequel by davidbofinger · · Score: 2, Insightful

    iPods had a big advantage over portable CD players - more portability. They were smaller than portable CD players, more convenient to use, much more portable than CD libraries. I don't think the video iPod has any similar advantage. It's not a portable viewer, as long as you're still taking it home to watch on your TV. If people start watching movies on VR glasses or something then that sounds like a much more promising paradigm.

    iPods could also use songs downloaded from the internet. There's a marginal corresponding advantage here: by transferring songs from your computer to your TV through an iPod you avoid issues with noise in the TV room. But it's not the only, or probably best, solution to that problem.

  9. 90's call Cringely, ask for shoes back. by 955301 · · Score: 2, Insightful


    Wow, that's backwards thinking for you! Why bother leaving the house?

    All apple needs to do is upgrade the mac mini to include an ipod video docking station and convince us that we need one in the living room. Download movies from the iTunes video store and play them using the mac mini. If you want to take a movie to a friends house just sync it to the ipod video go to said friends living room with an s-video cable and viola: The ipod is the new DVD media and player all in one. Exactly where they want to be.

    All this sneaker-net idea of his would do is slow Blockbusters death at Apple's expense.

    --
    You are checking your backups, aren't you?
  10. No Computer = No iPod... by 7Prime · · Score: 2, Insightful

    Sorry dude, you need a computer to use an iPod. Sure, there are a few folks out there who probably have all their music on their friend's computer, but those people are few and far between. Seeing that the iPod demographic, while mainstream, tends to be the technically elite mainstream... and fairly cosmopolitan, it's safe to say that a large percentage of the the demographic has fairly decent internet access. And, so what if it takes 2 hours to download a movie? Many people download things while they sleep, movies would be one of them.

    --
    Multiplayer Gaming (defined): Sitting around, discussing single-player games with my friends, at the bar.
    1. Re:No Computer = No iPod... by wild_berry · · Score: 2, Insightful

      I think that Cringely made a plausible case for having an iPod as part of your home entertainment equipment without involving a computer (by getting media from a booth at Blockbuster Video). His intention was to show that there is a market for iPods outside the existing demographic, and that Apple should see if they make more profit by selling their wares to this segment.

      As for broadband uptake, perhaps the article about USA attitudes to Broadband wasn't available when you wrote -- it tells us that many people don't see the need for higher data rates, so there is a need to get movies to them by other means.

  11. Re:Couple (invalid) Things by fejta · · Score: 2, Insightful

    A small quibble: your point 1 is wrong. Cringely's idea is that you would be renting the movies. You would not need to return it though. The DRM license would just expire after a determined amount of time.

    Oh, and that invalidates your second point too. You don't buy songs at Virgin or Tower because there is no mechanism for uploading songs from your iPod to your computer (according to Apple anyway). However when renting, Apple does not need to provide a way to keep it on your computer. You will want it to be deleted after the license expires.

  12. Re:Doubtful Business Model the prequel by SteeldrivingJon · · Score: 2, Insightful


    The thing is, portable DVD players are already cheaper than video iPods. And regular DVD players are cheaper than an iPod Shuffle.

    Going with the iPod really doesn't get you much of an advantage. The screen is smaller, the video is lower quality when hooked up to a TV. The only advantage might be that you can keep more than one movie on the iPod, but that strikes me as being much less significant than the ability to keep thousands of songs on an iPod versus a few songs on a CD.

    There's no way Blockbuster is going to try to make a business out of selling or renting iPod-based movies to the few customers who would prefer to watch on their wee small iPod screen, and would leave home to go to a Blockbuster in order to do so.

    I can't see many people doing that. If you're going to drive to the store, you're likely to grab a DVD to watch on your TV.

    --
    September 2011: Looking for Cocoa/iOS work in Boston area Cocoa Programmer Quincy, MA
  13. Where this WOULD work... by SteeldrivingJon · · Score: 2, Insightful


    As an addendum, there is one place where I think this business model would work well...

    Airports. The ideal market for this would be travellers facing a few hours on a plane, who probably would appreciate being able to pick up a video to watch without being encumbered by a DVD case, bag, plastic wrapper, etc.

    Especially if the service allowed the movie to be loaded onto a laptop for customers without a video iPod.

    --
    September 2011: Looking for Cocoa/iOS work in Boston area Cocoa Programmer Quincy, MA