Quote Originally Posted by Woochifer
Why can't you believe it? Here you are.
lol

Quote Originally Posted by Woochifer
As I've pointed out several times, downloadable content does not threaten disc media so long as the files themselves are locked down with usage limitations and expiration dates. With those limits in place, downloads are nothing more than an extension of the PPV, VOD, and rental markets. The DVD has turned the home video market into a purchase-driven market, where consumers expect to keep the content that they purchase and have unlimited access

And how different is Apple TV from any of the other PPV and VOD options currently available? There is a measure of selection and convenience that Apple adds to the market, but fundamentally they are not all that different from services that are already on the market.

Remember who holds the keys to the content -- the studios. Disc media is a high margin, low cost product with an established distribution network. Downloads are an unproven market, with lower revenue per transaction and a Balkanized distribution network with separate deals and conditions having to be negotiated with each distributor. Apple is a significant player in this market, but they're a big fish in a little pond. The 24-hour viewing limit on their new Apple TV movie downloads is an indication that they currently hold little sway with the studios, otherwise why would Apple agree to these kinds of restrictions? Until downloading can demonstrate much greater revenue potential, the studios will continue to give priority to retail sell-through products.

Agreed, but I am looking at the format war as being very long term as it will take years for a new standard to emerge. I don't expect usage limitations to be a long term issue - just take the recent trend towards non-DRM tracks on i-tunes... most likely the studios will just charge premiums for content without limitations....

Right now Apple TV may only be a rental site for HD and hence just like VOD or PPV but I suspect they will move towards actual sales just as they do with music.

Also, Expiration dates are only for rentals, so it won't be an issue with purchased content...



Quote Originally Posted by Woochifer
As far as the "tiny boxes" go, how many movies can an Apple TV unit store? In high def, an 80 GB unit will run out of space in a hurry. If consumers have to keep deleting movies in order to watch new ones, then this is no substitute for a "stack of optical discs" since those "tiny boxes" would only place a very short stack of those optical discs.
I think they have 40 and 160 GB units

Seriously though, you should keep in mind one other factor when talking about storage - downloaded content is not limited to the apple tv unit... it has wireless access to your computer and network storage devices.... so you can add as much storage as you want... And in-line with my long term theme, storage becomes less of an issue each year as hard-drives get larger and cheaper....