Apple Bets on Online Movie Rentals

By MAY WONG AP Technology Writer
SAN FRANCISCO January 16, 2008 (AP) The Associated Press

Apple Inc. has redoubled its effort to distribute movies online, gaining a foothold in a promising but unproven business that could eventually bolster its other core products.

Apple CEO Steve Jobs gestures as he talks about online movie rentals during his keynote at the...

Apple CEO Steve Jobs gestures as he talks about online movie rentals during his keynote at the MacWorld Conference in San Francisco, Tuesday, Jan. 15, 2008. Jobs confirmed the tech giant's foray into online movie rentals, revealing an alliance with all six major movie studios to offer first-run films over high-speed Internet connections. (AP Photo/Paul Sakuma) The tech giant launched a movie rental service at its online iTunes Store Tuesday and won the alliances of all six major movie studios to supply content.

Under terms similar to those at other online movie providers, rental prices range from $2.99 for library titles, $3.99 for new releases, and $1 extra for high-definition versions. The movies are ready to watch almost instantly over a high-speed Internet connection, and users have a 24-hour period to watch each movie once they start it.

The service, which launched in the U.S. on Tuesday and will roll out internationally later this year, will work on Macs, Windows-based machines, iPhones, iPods or the Apple TV set-top box.

But Apple and its rivals all face the challenge of making Internet delivery easy and affordable enough to drive a massive change in the habits of the movie-watching public.

Many analysts give Apple high odds of surviving what will likely be a long, bloody battle to dominate the digital living room.

Even though Apple's stock suffered Tuesday, some investors appeared to agree. Shares of Blockbuster Inc. plunged nearly 17 percent after Apple CEO Steve Jobs, speaking at the Macworld Conference and Expo in San Francisco, announced the new threat to the world's largest chain of movie-rental stores.

"Movies are really a big part of people's lives, just like music. And being able to do this on Apple's platform is an intriguing alternative to running out to the video store or getting DVDs through your mail," American Technology Research analyst Shaw Wu said.

Apple investors, however, seemed underwhelmed by Tuesday's parade of product announcements, which also included an ultra-slim notebook computer called the MacBook Air and a backup storage drive dubbed Time Capsule.

Shares of Apple slipped, losing $9.74, or 5.5 percent, to close Tuesday at $169.04. They fell another 3.6 percent, to $163.01, in after-hours trading.

The Battle of Online Rentals

Side-by-side Comparison of BlockBuster Online™ DVD Rentals, NetFlix.com, and Intelliflix


BlockBuster Online

- Keep the DVDs as long as you want No Late Fees
- Over 80,000 titles
- Most members receive DVDs in one business day
- Exchange in-store for instant access to movies
- Delivered to your Mailbox
- Free Shipping & Postage
- No Return Dates
- Cancel Anytime
- Now Accepts PayPal for Online Subscription

$$ Cost $$:

BLOCKBUSTER TOTAL ACCESS PREMIUM:

$34.99 / mo. + tax: 3 DVDs at-a-time Unlimited DVDs through mail Unlimited in-store movie exchanges.
$29.99 / mo. + tax: 2 DVDs at-a-time Unlimited DVDs through mail Unlimited in-store movie exchanges.
$21.99 / mo. + tax: 1 DVD at-a-time Unlimited DVDs through mail Unlimited in-store movie exchanges.

BLOCKBUSTER TOTAL ACCESS:

$19.99 / mo. + tax: 3 DVDs at-a-time Unlimited DVDs through the mail 5 free in-store exchanges per calendar month*
$16.99 / mo. + tax: 2 DVDs at-a-time Unlimited DVDs through the mail 3 free in-store exchanges per calendar month*
$11.99 / mo. + tax: 1 DVD at-a-time Unlimited DVDs through the mail 2 free in-store exchanges per calendar month*
$9.99 / mo. + tax: 1 DVD at-a-time 2 DVDs per month 2 free in-store exchanges per calendar month*

BLOCKBUSTER BY MAIL:

$15.99 / mo. + tax: 3 DVDs at-a-time Unlimited DVDs through the mail $1.99 in-store movie exchanges
$13.99 / mo. + tax: 2 DVDs at-a-time Unlimited DVDs through the mail $1.99 in-store movie exchanges
$8.99 / mo. + tax: 1 DVD at-a-time Unlimited DVDs through the mail $1.99 in-store movie exchanges
$3.99 / mo. + tax: 1 DVD at-a-time 2 DVDs per month $1.99 in-store movie exchanges

Sign-up for a free trial here:






NetFlix

- Delivered to your Mailbox - Free Shipping & Postage - No Return Dates
- Watch classics to new releases to TV series

$$ Cost $$

$23.99 - 4 DVDs at-a-time no monthly limit + Unlimited hours instantly on your PC
$16.99 - 3 DVDs at-a-time no monthly limit + Unlimited hours instantly on your PC
$13.99 - 2 DVDs at-a-time no monthly limit + Unlimited hours instantly on your PC
$ 8.99 - 1 DVD at-a-time no monthly limit + Unlimited hours instantly on your PC
$ 4.99 - 1 DVD at-a-time limited to 2 per month + 2 hours instantly on your PC

IntelliFlix

- Keep the DVDs as long as you want No Late Fees
- Over 60,000 Movies
- Large selection of DVD and Adult Titles
- Unlimited DVD Rentals - Delivered to your Mailbox - Free Shipping & Postage
$$ Cost $$

MOVIE PLANS

$3.96 - $4.96 per rental: 1 DVD at-a-time “Pay Per Rental (individual DVD rentals)” Up to 4 DVDs out at one time
$19.95 per month: 3 DVDs at-a-time Unlimited Monthly Rentals
$3.99 per mo.avg. / $47.88 Total Price: 1 DVD at-a-time 2 DVDs per month
$9.98 per mo. avg. / $119.70 Total Price: 3 DVDs at-a-time Unlimited Monthly Rentals

Movies + Mature Plans
$3.96 - $4.96 per rental: $3.96 - $4.96 per rental “Pay Per Rental (individual DVD rentals)” Up to 4 DVDs out at one time
$27.95 per month: 3 DVDs at-a-time Unlimited Monthly Rentals
$5.99 per mo.avg. / $71.88 Total Price: 1 DVD at-a-time 2 DVDs per month
$13.98 per mo. avg. / $167.70 Total Price: 3 DVDs at-a-time Unlimited Monthly Rentals



Verdict:

If you there’s a Blockbuster Store near your place of course the easiest choice is BlockBuster Online you can rent online and you can exchange them in-store. Netflix is good but they don’t have stores like Blockbuster Online, this is one of Blockbuster’s edge over Netflix. However, both Blockbuster and Netflix are family oriented so they don’t have mature collections. If you’re looking for mature movies Intelliflix has the best collections.