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Unbox Too Restricted and Too Expensive?

abb_road writes "Businessweek takes a first look at Amazon's new video service and walks away unimpressed. Between the high cost of downloads, the sometimes-poor video quality and the restrictions required by movie studios, they're not predicting a huge hit. From the article: 'Amazon finally launched its long-awaited online video service on Sept. 7. But it's no sure thing that it will catch on with the masses. The service, called Amazon Unbox, offers downloads of movies and television shows, as well as digital movie rentals. But like all its rivals, it's shackled by a raft of viewing limitations imposed by movie studios.'"

25 of 185 comments (clear)

  1. And...? by Rendo · · Score: 2, Insightful

    What do you expect? The movie industry is full of greedy suits that will try and squeeze as much out of the consumer as possible before the consumer just flat out says no. It worked for the music industry, but I seriously doubt this will ever take off with the movie industry. It's far easier, and cheaper, to just torrent movies and get better quality videos from cams. That's right, I said it, cams.

    1. Re:And...? by Firehed · · Score: 3, Insightful

      I'd say that Apple would absolutely love to do that. But at the end of the day, they still need to deal with whatever contracts the studios want, or else they have no content. Apple would love a flat $9.99 per movie with fairly liberal DRM (that's to say, unobtrustive, but still locks you into Apple hardware and software, as Fairplay does now). But the latest word is that the MPAA absolutely refuses to do a pay-to-own model, and won't take less than $14.99 for the newest films, or so was my impression of the soon-to-come iTunes Movie Store. As much as I hate iTunes for the DRM (well, moreso the DMCA for making it a worse offense than assaulting an officer or possessing child porn to break it), it's really managed to handle the entire digital music distribution thing extremely well. Sure, I prefer AllOfMP3 for a number of reasons, but if I'm going to pay for my music, I want all of the profits to go to the artist, at least within reason (Steve gets his distribtion costs back plus a couple cents, everything else to the artist and not a dime to the f'ing RIAA).

      In effect, my concern about mine and others' online rights as completely stopped me from getting my music legally. And, by and large, movies as well (and that's only because a 1080p projector and 50.1 surround is a bit out of my price range, not to mention how it's not too compatible with a college dorm). My father used Rhapsody some time ago (I think, one of those WMA ones), and the DRM made his player useless. He's not stupid when it comes to computers - he eventually found out that burning and reripping his songs would strip off the restrictions. And it was a massive pain in the ass. Guess what - he buys NO music online anymore. Mind you, this was before PlaysForSure, but everyone knows that device lock-in is bullshit, and the moment that you start to notice DRM, it's not working properly. I love my iPod and use it all the time for music, and almost always use iTunes when I'm at the computer. But I watched a 30-minute video on my iPod last night, and I came away with a sore wrist like never before.

      At least with audio, I just need to have speakers nearby, and have a standard 3.5mm jack. iPod-quality video really looks crappy on any decent-sized screen, and the notion of being forced to use iTunes or my iPod for iTVS(?) content is insane, especially with the absolutely horrible video playback capabilities of iTunes (the windows are completely counter-intuitive, not to mention slow to respond). While I'm sure that a video store would bring about iTunes v7, that doesn't mean it'll handle video playback any better. I HAVE to use QuickTime to watch movies in my iTunes library, just because the playback is so messed up within iTunes. Then, just the limited resolution and audio quality, not to mention a possible rentals-only method. Only the MPAA could be dumb enough to think that we'd pay just as much for a time-limited rental (and no late fees, it'll just dissapear) that you have to spend quite a while downloading, with only stereo audio and resolution that's probably half of what DVD has to offer. It's almost as if they're trying to prove to themselves that people aren't interested in digital distribution. My DVD-quality files are generally 2-2.5GB in size, which will take an insane amount of time to download over most home broadband connections.

      What's the point of all of this? Apple could easily pull off an extremely successful iTunes Video Store. They know how to do it, and have a pretty damn good idea of what people want. But they're being bound to restrictions forced upon them by the MPAA (no contract, no content, after all, so it's their way or the highway), which they probably know are going to really piss people off. Sure, Apple might strike a deal with Youtube that'll work with the parent's concept box (which wouldn't surprise me - Youtube has all rights over their content unless the uploader pulls it, and they of all companies know that people don't want to put up with stupid restrictions and just want cheap cont

      --
      How are sites slashdotted when nobody reads TFAs?
  2. Bears repeating... by Prometheus+Bob · · Score: 5, Insightful

    More expensive than other legal methods (just buying the dvd used), with more limitations (can't backup, can't play in normal dvd players). I can't understand why it won't do well!?

    1. Re:Bears repeating... by DrXym · · Score: 2, Insightful
      I hold a stock in Amazon. Even with a financial incentive to support Amazon, I think the pricing and the conditions are just dumb, dumb, dumb. Basically we're talking about an extremely shitty rental service - too expensive and too restrictive. Why the hell would I want to spend $9.99 or more on a movie which probably sells for the same or less on a DVD? Why should I use their lousy online service at a price that they (or a competitor) would send me a disc that I owned forever with no restrictions? The answer to these questions is I wouldn't. There is absolutely nothing in it for me to spend so much for so little.

      I think if Amazon had sold movies for $5 on the same conditions then it would have sparked a revolution. At that point you're talking about a service offering semi-permanent movie ownership. You can't move or burn your movies but you can hang onto them as long as your PC is alive. A service like that that is basically a glorified rental model but it should be cheaper than buying the DVD.

  3. MPAA by x-kaos · · Score: 4, Insightful

    We knew this was the case, to much drm and not worth the money. What I fear is MPAA spin saying "Oh, well we tried to sell downloadable movies, but no one wanted them. People would rather pirate instead." I think they could work, just not this way.

    1. Re:MPAA by pla · · Score: 4, Insightful

      What I fear is MPAA spin saying "Oh, well we tried to sell downloadable movies, but no one wanted them. People would rather pirate instead."

      Why? They've already bought draconian anti-fair-use laws that make the fines for "copyright violation" high enough to bankrupt most upper middle-class families, along with punishments for breaking DRM comparable to murder. Even if they go whining to the government, what more do you fear they'll get?

      They really can't get any more, with current technology. We have effectively "lost" as badly as we can, with only a few freedom fighters such as DVD Jon as the last holdouts. And the media cartels have only our growing hatred to show for it.

    2. Re:MPAA by Anonymous Coward · · Score: 4, Insightful
      I can seem to think of plenty that they might want:
      • Broadcast Flag
      • Analog Hole legislation
      • Broadcaster's copyright
      • Remote key revocation
      • ???
    3. Re:MPAA by CastrTroy · · Score: 5, Insightful

      It's really hard to compare the price of DVDs and CDs. On one hand, I listen to at least 1 song from each of my cd's at least once a week, some albums I listen to every week. So I get a lot out of them. DVDs on the other hand, I may watch once a month (for movies anyway), and often only once or twice a year. Some movies i've bought and only watched once or twice, but since it's cheaper than renting it 3 times, I've decided to buy it. So, although music is much cheaper for them to produce, it's worth a lot more to me, and yet they still charge less than DVDs. DVDs aren't really that expensive considering how much you pay for a theatre ticket, or how much you pay to rent them.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    4. Re:MPAA by DreamingReal · · Score: 3, Insightful

      I don't think the movie industry would be so disingenuous. At the end of the day, this is all about money. They live and breathe in fear of the faceless internet "pirate" and that fear is leading them to be their own worst enemies.

      Consider that most average users want a fair price and ease of use. DRM solutions eliminate the second want and the industry's greed eliminates the first want. Everyday that passes is a day where a potential customer will turn to bittorrent and filesharing for their movie needs. "The price is that much? Fine, I'll get it for free from Pirate Bay" or "I have to download another player, can't move it to my laptop, and need to buy it again when I reinstall Windows for the fifth time this year? Fine, I'll figure out how Azureus works and get it from there" could be typical reactions to these crappy online offerings. In the long-run, they are losing more money by turning away customers by not making this cheap and easy.

      All their bought-and-paid-for legislation and new DRM technologies won't change anything. They will never be able to win this war on the technological or litigious battlefields. They will only win this when they make it so easy that your grandma could use it and it wouldn't bankrupt her in the process.

      --
      We want some answers and all that we get
      Some kind of shit about a terrorist threat

      - Ministry
    5. Re:MPAA by jbreckman · · Score: 2, Insightful

      With the DRM, poorer quality, and extras missing, you actually get much less than if you bought the DVD. Therefore it should cost much less. It is as simple as that.

      Who would pay the same price (or near it) for less features?

  4. "Low Resolution" S-Video cable? by raehl · · Score: 2, Insightful

    When your content is DVD-quality, S-Video cable is plenty sufficient for carrying the signal.

    1. Re:"Low Resolution" S-Video cable? by Fulg · · Score: 2, Insightful
      When your content is DVD-quality, S-Video cable is plenty sufficient for carrying the signal.

      Perhaps on SDTV, but on an HD set, component cables make a fairly big difference on quality, and allow for HD modes. There is also that nice auto-widescreen detection, so no hunting for the TV remote when the extra content is in 4:3...

      Putting the whole quote in context:
      A Windows Media Center PC can be cabled to a TV, but only through a relatively low-resolution S-video line. "The last piece of the puzzle is the connection to the television," says Thomas McInerney, CEO of video download service GUBA.
      ..perhaps Mr. McInerney hasn't heard of DVI cables? I have a DVI connector on my HDTV, and you can easily convert from DVI to HDMI for "recent" HD sets. You'll get a decent quality output on your TV (perfect output if you have an LCD set -- which I don't); you don't even need a special video card...

      Where is the puzzle?
      --
      gcc: no input sig
  5. Netflix! by andrewman327 · · Score: 2, Insightful

    People fail to realize that Netflix is making money on what some would call an old-fashioned profit model: mail DVDs to people and they mail them back. They may spend millions and millions of dollars in postage (and impacted by postage hikes, but they do not have these limitations. People also do not realize that YouTube is losing loads of money every month. Online video has a place, but it is not in replacing DVDs with DRM.

    --
    Information wants a fueled airplane waiting at the hangar and no one gets hurt.
  6. So I can buy a movie... by Overzeetop · · Score: 5, Insightful

    ...but I can't watch it on my TV.

    I get to watch it on my monitor, which is fairly small.
    In my office, where there's room for one, maybe two people.
    On an uncomfortable chair instead of my couch.
    And I get to pay more than an excellent condition DVD off of ebay, often as much or more than the DVD from Amazon, and probably more than the WalMart B&M down the road.

    In return I get to avoid waiting the 2 days for shipping (which I get "free" from Amazon Prime), or driving the 4 miles to a local store.

    I'm sorry, was there something I was supposed to enjoy about this transaction?

    --
    Is it just my observation, or are there way too many stupid people in the world?
    1. Re:So I can buy a movie... by captaincucumber · · Score: 2, Insightful

      Also, you can't dump this movie on eBay when you get sick of it like you can with a regular DVD. You should think of this as adding $5 to $10 to the cost of the download because a real DVD has a resale value.

  7. Why does Amazon copy failure instead of success? by dpbsmith · · Score: 4, Insightful

    I don't get at all. Why are companies so bent on copying failure instead of success?

    DIVX disks played on ordinary DVD players, were time-limited, and cost less than straight DVDs. And failed.

    FlexPlay disks played on ordinary DVD players, were time-limited, cost less than straight DVDs, and failed.

    Amazon Unbox WON'T play on ordinary DVD player, won't play on my almost-spiffy almost-new Mac Mini, won't play on my wife's PC (Windows 98), wouldn't have played on the Hewlett-Packard PC my daughter's family uses (WIndows 2000 Home Edition) before it crapped out a few months ago, won't play on the spiffy new Mac Mini she replaced it with, apparently won't play on any portable video device... ...is time-limited, and costs about the same as straight DVDs.

    And up to now I thought Jeff Bezos was a smart guy.

  8. Anyone else notice? by Anonymous Coward · · Score: 3, Insightful
    Anyone else notice that Business Week just called DRM by its more appropriate name:
    Digital Rights Restrictions

    I don't go in for what most of the whiney slashbot crowd does, but this one brings some glee to my cold little heart that a fairly popular magazine is helping to relabel DRM appropriately. I don't care what movie studios do to their products, but it offends me as a consumer when they try to lock my purchases up and tell me what to do with them after I own them.

    I don't support the dirty theives that are too cheap to pay for music and movies, but it's also not my problem and if you're going to make me suffer because they're scumballs, I'm not going to buy your stuff either. Not only will the jobless wonders keep stealing from you, I'll just stop buying on top of it.
    1. Re:Anyone else notice? by Anonymous Coward · · Score: 2, Insightful

      I think you fail to get the full purpose of DRM. It isn't just to stop piracy. In fact, one could argue that it really doesn't stop it at all. One of the biggest benefits to the studios is that people are forced to spend more money on things that shouldn't cost extra. Want to watch that movie you just downloaded to your home entertainment PC on your portable video player? It'll cost you extra. Want to take the movie over to a friend's house for a dinner and movie party? No can do. Your friend will have to buy his own copy, or you'll have to buy it for him. Want to sell or even give the movie away when you get tired of it? Nope, you can't do that, either.

      DRM has very little to do with piracy, but it has everything to do with control. According to the studios, you haven't bought anything; you've only licensed it. So, since you've purchased a license, can you get replacement copies if the computer your movies are stored on buys the farm? I mean, the DRM did keep you from making backup copies. Nope, not a chance. The files were locked to that machine, and it's not the studio's fault a power surge killed it, taking your $2,000 movie collection with it. Congratulations, you just became a new consumer all over again.

  9. Re:Market share by ScrewMaster · · Score: 1, Insightful

    As a previous poster pointed out, they can claim that they tried to go online with a legit service and it didn't work.

    "So now, Mr. Congressman, you have no reason not to pass our new "Digital Media Consumers' Rights Act". Yes, I know that it requires the death penalty without due process for suspected infringers, and yes yes, the new Corporate Copyright Storm Trooper section of the bill may raise a few eyebrows but we need this to protect the artists so just sign it if you want your check."

    --
    The higher the technology, the sharper that two-edged sword.
  10. Hmmm... by Otter · · Score: 2, Insightful
    I have enough technology at work that I don't need much of it at home, so maybe I'm out of touch with what "the masses" have.

    But are there really a significant number of people with the computer-large screen integration to make this program useful? The article brings that point in at the end, but I wonder how much overlap there is between the Media Center crowd and the non-P2P'ing-everything-anyway crowd.

  11. o rly? by IamTheRealMike · · Score: 2, Insightful

    And the counter-argument:

    • More expensive than other legal methods (just buying the dvd used): well, it's not more expensive than buying on Amazon itself as it calculates the savings for you and displays them. Yes you could buy the DVD used but so what, the convenience is worth it for some - I don't plan evenings when I feel tired and want to watch some TV weeks in advance, it just happens. And when it does I want to watch some episodes of 24 right there and then, if I can. I'm willing to pay more than getting a used DVD off eBay for that convenience.

    • With more limitations (can't backup, can't play in normal dvd players) - can't backup .... and? You couldn't backup DVDs for the first few years of their life either due to DRM and that didn't stop them taking over the world. I hypothesise that most people don't care; I know I never backed up any of my DVDs and I wouldn't care about backing up these movies either. I'd probably rent them instead. Don't play in normal DVD players ... yes this will have an impact and stop some people using the service. But lots of people already watch TV on their computers, it's no big deal.

    • I can't understand why it won't do well!? - video on demand probably will do well. Will it be Amazon Unbox? I do not know, and I don't care to predict based on the feelings of Slashdotters which is basically "doesn't work on a Mac/Linux, must suck". It might succeed, it might fail, but apart from being restricted to the US (moving there soon anyway) I haven't seen anything that'd stop me using it.

    Now it may fail for other reasons ... too hard to use, poor quality, too slow or whatever. But I don't think the masses care about DRM. For many years you couldn't copy CDs; the CD-R and MP3 was not yet invented. Yet CDs did very well and didn't die. iTunes music store is doing very well despite being ridden with DRM and locking you in to Apple (one software player, one hardware player, one store, one company) far more than Windows Media does.

    1. Re:o rly? by midknight32 · · Score: 3, Insightful
      With more limitations (can't backup, can't play in normal dvd players) - can't backup


      .... and? You couldn't backup DVDs for the first few years of their life either due to DRM and that didn't stop them taking over the world. I hypothesise that most people don't care; I know I never backed up any of my DVDs and I wouldn't care about backing up these movies either. I'd probably rent them instead. Don't play in normal DVD players ... yes this will have an impact and stop some people using the service. But lots of people already watch TV on their computers, it's no big deal.


      I've had enough of a failure rate in HD's to be very concerned about my ability to back up data on a HD
  12. Moo by Chacham · · Score: 3, Insightful

    The nice thing is, they did it. Even if it fails, someone else will try again. Eventually it will work.

    It's simple. People want to download movies. Paying for it is not the issue, as many people will say. It's just plain old availibility.

    The companies would love it if noone could watch a movie outside of a theatre, and would only sell long dead movies. The people think theatre's are a nice experience, but that is added on top of viewing the movie itself. And, if you don't like the theatre, or going to a theatre is cumbersome or not feasable, or even watching the entire movie in one shot is not desirable, the movie needs to be availible elsewhere. Also, people are willing to pay a premium to watch it the first time, but not the second, third, or more. Being many people who download movies have already seen it in the theatre, charging a premium at home would alienate that subset of potential buyers.

    That's where this service comes in. They set up a mini-theatre in your house with some control (although, they own the process and restrict its use). This is what people don't like. But, it also means its happening. For Amazon to get this far, means that the industry recognizes the need. It's a large step, though perhaps not large enough for the consumers. The point is, it will happen. Eventually. And the more the industry holds back, the more piracy will pound them on the side.

    So be happy. The child has taken his first step.

  13. This needs accompanying hardware! by King_TJ · · Score: 2, Insightful

    Arguments about price and DRM limitations aside for a moment, it occurs to me that Internet-based movie downloads won't really take off unless there's a piece of hardware accompanying the thing. Tivo, for example, should have partnered up with Amazon or someone else doing this and said "Ok - we'll send down a free firmware upgrade to all of our users, and then our boxes will be able to browse your movie catalog and order up content on-screen, saving it to the hard drive in the unit. Meanwhile, the user will be free to watch existing content while it downloads in the background."

    The overall business model works a lot better for music downloads, because A) They're smaller and take a lot less time to download, B) Every single user of a portable digital music player has to learn to sync it with a PC in order to load it up with music, so a PC is a logical "starting point" for receiving that type of content, and C) Many more people are comfortable burning a standards-compliant audio CD from a PC for use in their home or car stereo than are comfortable burning DVD movie content that plays properly on their stand-alone players.

    If it was really commonplace for people to use their computer as a media center attached to a TV and surround sound stereo receiver, then this might go over a little bit better. But it's not! Half the people buying new computers with "Windows Media Center edition" preloaded on them don't even use the TV playback and recording capabilities of it. They just went with it because the whole bundle was on sale....

  14. Re:How can anyone say it is too expensive by GweeDo · · Score: 3, Insightful

    I know you were being funny, but I just had to show how cheap this really is.