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Variety: Xbox 360 Video Marketplace Succeeding

December 27, 2006 at 7:25 pm - by Dale Dietrich

Categories: iVOD/iTV • New Business Models • New Tech

For  years I have called for video-download services to be provided directly to a TV-connected consumer electronics product such as the Xbox, TiVo or PS3. This Variety article discusses how the Xbox 360's new Internet-based video-on-demand service is having relative success (where others have failed) due to its available HD content and its direct connection to the TV.

The relative success of video downloads on Microsoft's Xbox Live and disappointment of Amazon.com's Unbox point to two factors that differentiate Xbox from Amazon and its many other competitors — consumers who download a movie want a simple way to watch it on their TV, and those with high-def TVs want high-def content.

A primary reason for its success lies also in the fact that DRM is not a relevant consideration for most users when the content is delivered directly to the display unit of choice. iVOD services to PCs have largely failed because most people do not want to watch TV and movies on their computers. And the DRM used by most of those services preclude users from copying the movie onto a DVD for playback where they want to watch them – in the living room. 

FYI: Joystiq has a pretty good preview of the system here including a YouTube demo. Note that the demo was done early-on. As I understand it the slow-downloads and other glitches experienced in the early days have been resolved.

Sources: Variety | Joystiq | XBox 360 Fanboy

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  • http://www.davisfreeberg.com davis freeberg

    Microsoft may be showing signs of early success, but it pales in comparison to the market share that piracy has on downloading right now. The Xbox shows that people are willing to pay, but they’ll need to offer a lot more then V for Vendetta if they every want to replace cable or bit torrent.

  • http://auctionflurry.com Dee

    Yeah I prefer to watch movies on my TV and not computer. I own a xbox 360 and have never ordered a movie. I wanted to know if it was better to download or rent it. I know downloading is more convenient but do you think it is worth the money to do so.

  • http://www.daleisphere.com Dale Dietrich

    Dee, it depends on where you live. In the U.S. there is a LOT of content available on the 360, but not too much in Canada. The whole Microsoft Points system discriminates against non-Canadian currencies. So much so that a movie rental in Canada can cost between $5.00 and $8.00 Cdn. AppleTV is a much better bargain in Canada and it gives you a much greater selection. In the U.S. the difference between the two is much less.

    It's pretty straight forward to know the price. If you have a 360, the price for the movie will be listed in Microsoft Points on the 360. Then just find out what the price of those points is in your country and you'll know how much it costs.

    For my mini-rant on Microsoft points and more info on the topic, see my post here:

    http://www.daleisphere.com/are-the-days-of-micr…

    ….dale

  • http://biasedvideogamerblog.wikidot.com/ gamer review

    Microsoft has made an exceptional deal with Netflix to stream content. I have heard that there have been millions of new subscribers and my friend who has a 360 has really enjoy the streaming. Both companies are really benefiting from the Netflix deal.

  • http://refer4freebies.com Refer4Freebies

    microsoft have shot themselves in the foot charging for everything online with the xbox as the ps3 offers most online stuff free

  • http://www.daleisphere.com Dale Dietrich

    2+ years after I wrote that original post it still is true. There's something to be said about you get what you pay for. The online experience no the PS3 still pales in comparison to that offered by the 360. And Sony's much vaunted Home is a joke. I finally checked it out a few days ago. I'll likely NEVER go back. It's a complete waste of time.

    I'm enjoying Killzone 3 and loved Drake's fortune. Otherwise my $800+ investment in my PS3 (Canadian dollars) has not been well rewarded.

    In 2009, if I had to choose, there's still no choice – the 360 is the run-away leader between the two. The market (as shown by year over year sales) agrees.

    …Dale

  • http://www.videogamesradar.com VideoGames Radar

    thanks for your post, I prefer to watch movies on my television and not computer.

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