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#1 |
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Kasper's Automated Slave
Join Date: Nov 1997
Posts: 6,148
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iTunes sells 5 billion songs; serving 50,000 movies per day
Apple announced Thursday that customers on its iTunes Store have purchased and downloaded over five billion songs to date.
The digital download service is the number one music retailer in the US, according to the most recent data from NPD Group's MusicWatch survey, and features the largest music catalog with over eight million songs. Apple also said that iTunes customers are now renting and purchasing over 50,000 movies every day, or a yearly run rate of over 18 million, making iTunes the world's most popular online movie store as well. In addition to its industry leading eight million songs, iTunes also sports a catalog of over 20,000 TV episodes and over 2,000 films, including over 350 in high definition video. iTunes features movies from all of the major movie studios including 20th Century Fox, The Walt Disney Studios, Warner Bros., Paramount, Universal Studios Home Entertainment, Sony Pictures Entertainment, Metro-Goldwyn-Mayer (MGM), Lionsgate and New Line Cinema. Users can rent movies and watch them on their Macs or PCs, all current generation iPods, iPhone and on a widescreen TV with Apple TV. iTunes Store customers can also purchase new movie releases from major film studios and premier independent studios on the same day as their DVD release. |
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#2 |
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Registered User
Join Date: Jan 2007
Posts: 7
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Ahh, a lightly warmed over press release...
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#3 |
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Registered User
Join Date: Apr 2006
Location: The Ansible
Posts: 11,738
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They were about 1.5 months short of selling 5B is 5 years.
At the current rate of 50K movies per day they will sell 18.25M per year. At $4 per movie rental (which I assume is the most common) that is $73M per year in revenue. |
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#4 | |
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Registered User
Join Date: May 2005
Location: Brisbane Australia
Posts: 58
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Quote:
At least we have a Company store! ![]() |
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#5 |
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Registered User
Join Date: Feb 2007
Posts: 652
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What about NBC???
Any word on NBC's outside attempts with NBC.com, Hulu, Amazon and Zune Marketplace or whatever other distribution devices NBC has chosen? I wonder if the execs at NBC are still trying to figure a way to come back to iTunes while saving face or if they feel they are justly compensated through the ad supported distribution means they currently support with their programming.
Not to diminish any of NBC's shows but none of them ever caught my fancy so I never viewed them or bought them while on iTunes and I DEFINITELY did not go looking for any of their shows elsewhere. I am curious to know, those that loved NBC's programs such as, The Office, Scrubs, 30 Rock or whatever, when the content dried up at iTunes did any of you venture to alternate sites to find the NBC content and if you did back then, are you still today?! Just curious... ![]() |
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#6 |
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Registered User
Join Date: Jan 2008
Posts: 32
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They are gonna have to move WAY more than 50,000 a day to make it worthwhile. That ends up being 40-80 million in revenue per year...split like 20 ways between hollywood, the costs of digitizing, the cost to provide the bandwidth, and apples cut, the tax man, etc. I imagine the lions share of the revenue has to go to hollywood (70%). I cant imagine at that pace that apple makes more than 5 million a year from the business, maybe 10m if you factor in apple tv/ ipod sales that are driven by this business. Not good. I was really hoping for better. They will have to at least triple this if they want to keep such a business model going, or the studios will bail and the content will evaporate.
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#7 | |
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Registered User
Join Date: Jun 2007
Location: Frankfurt, Germany & Bangkok, Thailand
Posts: 290
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Quote:
If this is the most popular online store in the world already - where would the studios turn to? |
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#8 |
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Registered User
Join Date: Nov 2001
Location: The UK of Englandshire
Posts: 985
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Pah... It'll never catch on.
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#9 | |
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Registered User
Join Date: Jun 2003
Location: Tinton Falls, NJ
Posts: 702
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Quote:
So I think NBC and Apple are definitely both hurting each other in this. No one's winning. I think NBC needs to just bite the bullet and come back to iTunes without bizarre DRM requests. |
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#10 | |
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Registered User
Join Date: Jan 2008
Posts: 32
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Quote:
I think digital distribution is the way to go in general ( i havent bought a music cd in 5+ years but buy tons of tunes off itunes) but people are being really slow to adopt this model for video content. Watching video on portable media players is ok if your traveling or something, but not something most people would choose to do over conventional tv setups so i think that market is pretty limited by the small form factor of the device. If blu-ray systems didnt cost a ton and did more maybe the physical media model would see something of a revival, for now I think there is just gonna be a few years of stagnation as no one player can seem to get that critical mass. |
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#11 | |
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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Quote:
Whatever the market is doing today so far (I haven't checked my realtime account yet) Apple's stock should be rising from this news, which shows three very good things. One is the expanded music library of over 8 million songs. Two is the sale of over 5 billion songs, which shows, as I've been saying for years now, that most consumers couldn't care less about DRM and quality issues. This makes the DRM hating geeks come out of the woodwork, but it's true, most consumers don't give a sh*t about DRM. And three is the really good news about movie purchases and rentals. Even though Apple has many fewer movies than their main competitors, their new pricing and renting schedules are proving to be palatable to consumers, as I also said it would, and leading to industry leading business. Variable pricing is not the bugaboo that some seem to think it is. Consumers agree that different things have different values, and they don't mind paying more for something they value more. |
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#12 |
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Registered User
Join Date: Jan 2008
Location: England UK
Posts: 200
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Bah
On the movie side of things is this data US related or does it include data from the recent launch of movies in the UK and Canada?
Guess it puts the Kibosh on any price reductions on movie's in the UK store ![]() |
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#13 | |
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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Quote:
but, you could have said the same thing about iTunes music several years ago. Your argument has no credence, because of two reasons. The first is that Apple just instituted this a few months ago, so it's at it's infancy, and has a long growth curve in front of it as Apple gains many more films, Tv shows etc. Right now, they have but a fraction of what their competitors have, and yet, they beat the pants off them in sales and rentals. Doesn't that tell you anything? Two is that Apple has NEVER regarded their downloads business to be much more than an adjunct to iPod and Mac sales. Now iPhone sales as well. If they make a 5% profit on this they will be very happy indeed. This is the main advantage Apple has over its competitors who are only selling the service. They have to make more profit on it than Apple to have a viable business. Remember that the labels and studios have complained about that very thing. That Apple doesn't care about profits on its downloads because of its hardware business, which its downloads are just the feeder for. I think that 50,000 downloads a day at this point is very good indeed. Your expectations are out of whack with reality at this time. |
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#14 |
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Registered User
Join Date: Sep 2004
Posts: 597
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For music It took:
3 years to sell the 1st billion, 1 year to sell the 2nd billion, 6 months to sell the 3rd and 4th billion 4 months to sell the 5th billion. I'd expect the movie rental trend to increase as well.. |
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#15 | ||
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Registered User
Join Date: Jan 2008
Posts: 32
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Quote:
As for it just being a couple months old...kinda, but iTunes for TV has been around a lot longer and this is only a tweek on it. Are they even advertising it or the apple tv? I would be more optimistic if they started advertising, that would be a sign of commitment. I am not taking the position that apple needs to make much of a direct profit from this, but the movie industry certainly does if they want to have the content. Quote:
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#16 | |
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Registered User
Join Date: Sep 2004
Posts: 597
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Quote:
If this pace continues or increases it becomes a minimum of 3 billion songs sold per year.. If Apple gets a 10% profit, that's $300 million per year in music sales alone, even a 5% profit is 150 million per year. Both figures are definitely something to regard. Last edited by solsun; 06-19-2008 at 11:16 AM.. |
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#17 | |
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Registered User
Join Date: Jan 2007
Posts: 849
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Quote:
The real growth potential is the movies, I think. Movies have been around a little while, but how do you get that on your TV. The first limiting factor is the need for a widescreen TV (yeah, I know that's not strictly true). The second was the cost of AppleTV (although I use my mini). The third was cost of content (iTunes movie purchases aren't exactly a bargin for what you get). All of those have only just recently been addressed to some degree. This past holiday season was another big one for HDTVs, and after the holiday Apple lowered the price of AppleTV and added rentals. The true test will be this upcoming holiday season. An upgraded AppleTV, bigger movie selection, and a big marketing push could make AppleTV a big item for Christmas gift giving. The competition will be Blu-ray (from a gift-giving perspective, not from a technical features perspective). I suspect this Fall is the battle Apple will be gearing up for on the movie/AppleTV front. |
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#18 | |
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Registered User
Join Date: May 2007
Location: Seattle, WA
Posts: 70
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Quote:
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#19 |
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Registered User
Join Date: Apr 2002
Location: San Jose, CA
Posts: 961
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I haven't purchased a single movie from iTunes and I've moved to Amazon for all my music purchases (I like to use my PS3 as a "media center").
I haven't really bought any movies in awhile, mostly because I don't want to invest in old tech (dvd) anymore, but bluray is too expensive and the quality just isn't there w/ iTunes. I only buy things on bluray that I really really want (Planet Earth, 300, and Bladerunner thus far), I will be buying Monsters Inc. and Finding Nemo once those hit and Transformers as well. It's really a shame with all the DRM surrounding iTunes and everything else. I didn't care before when all I had was an iPod, but now so many devices can play digital content I feel trapped with iTunes Store media...
My Wearable LED Cloathing Company–
http://www.EroGear.com |
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#20 | |
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Registered User
Join Date: Jun 2006
Location: Jersey (new)
Posts: 1,001
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Quote:
I don't think that the movie industry is very excited about selling movies online (I think they were happy with theaters and DVDs) but the world doesn't stand still, as much as they would like it to. If a whole generation comes to expect to be able to move movies to all their devices (TVs, computers, iPods and such) and the only way they can do this is through illegal downloading or ripping then a whole generation will come to age expecting their movies to be free. The movie industry, if they are thinking long term, MUST provide resonable cost options for downloading movies. It is the wave of the future (it may not be here yet, but we know the wave is coming) and they need people to get used to paying for their content. We saw what happened to the music industry when a generation got to thinking music should be free. It has taken people a long time to get used to buying it again and b!tch as they might, the music industry has iTunes to thank for that. The movie industry must have learned a lesson there...
Progress is a comfortable disease
--e.e.c. |
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#21 | |
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Registered User
Join Date: Sep 2004
Posts: 597
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Quote:
Secondly, your Blu-Ray discs have just as much DRM and are more limited than iTunes content as they won't play on anything other than your PS3 or another Blu-Ray player. I do understand what you mean by the quality isn't there yet with iTunes HD, but it is still very good for a rental. |
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#22 | |||
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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Not harsh, just accurate. The argument is way off base.
Quote:
Quote:
Remember that not only do they not have to press disks, pack jewel cases and printed liner notes, but they have no distribution costs, and they don't have to take back unsold copies and destroy them. Don't believe their crying. They're doing just fine. What the content providers are concerned about is that downloads are not growing at the pace that hard copy sales are shrinking, so they are trying to make up the difference by charging more for the downloads. There two trains in motion here. One is that they want to make up the losses in hard copy, and two is to try to slow down the growth of downloads with the hope that it will keep hard copy sales numbers up. Neither course of action is going to work. Quote:
I hope Apple will sell 20 million Macs in 2009, but I don't expect them to. |
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#23 | |
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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Quote:
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#24 |
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Registered User
Join Date: Jan 2006
Posts: 1,395
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Interesting to finally see a number on apple's videos.
So they offer 22k titles, compared with the 10k for Netflix downloads. So much for the assumed Netflix advantage there. And is a pace of 18 million movie downloads per year so bad? Seems decent for an industry in its infancy and likely to grow pretty quickly over the next few years. Isn't the most important factor that apple is the number one video/movie download site (by far), not whether the raw numbers seem big enough? As long as Apple is on top and growing, I don't see any reason for concern. Like studios are going to abandon the most successful seller in favor of smaller ones? No way. Apple's biggest hurdle is that they are SO successful, studios are afraid of giving them too much content and them monopolizing the market. |
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#25 |
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Registered User
Join Date: Jan 2006
Posts: 1,395
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#26 |
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Registered User
Join Date: Feb 2006
Posts: 230
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Sales of AppleTVs must be finally kicking in as well then given the HD requirements.
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#27 |
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Registered User
Join Date: Jan 2008
Posts: 32
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Mel,
Guess i wont bother putting my 2 cents up anymore. Your opinion = truth , unless that argument also "has no credence" |
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#28 | |
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Registered User
Join Date: Oct 2006
Posts: 474
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Quote:
I have an iPod, a PSP, a Tivo and a PS3 and I want to be able to listen to my music on any of those devices. And except for the tiny portion that was purchased from iTunes, it all does. I don't understand your comment about Blu-Ray: "...as they won't play on anything other than your PS3 or another Blu-Ray player." Except that unlike iTunes DRM, those discs aren't locked into only playing on one manufacturer's equipment. If my PS3 goes, I can go buy a Pioneer or Panasonic player. I don't know why you think someone would expect Blu-Ray discs to play on something than a Blu-Ray player. |
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#29 | |
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Registered User
Join Date: Sep 2004
Posts: 597
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Quote:
Yes, iTunes media has DRM, but you have options, you can transfer that media from your computer (Mac or PC,) as well as an iPod, iPhone or Apple TV.. So you do have the option of portability and taking that content with you as well as watching it on the big screen at home. Blu-Ray content also has DRM but it is more "limited" in that there is no portability offered. Sure, you can choose to buy a player from Sony, Pioneer or other, but they are essentially all the same type of device, a Blu-Ray player.. Most people don't buy multiple Blu-Ray players for different needs, but they do buy multiple home and portable devices for different purposes. You can't rip, burn or take Blu-Ray content with you on ANY brand music player or phone. |
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#30 | |
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Registered User
Join Date: Oct 2007
Posts: 640
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Quote:
Apple can play the waiting game. This is a much slower adoption process than music. I think most of those movies sold or rented goe to iPods. As the market matures, Apple TV takes off (if it does), iPhone sales soar and most importantly, the movie inventory increases drastically, Apple will be well positioned to benefit. I think 50 000 a day is important. It proves that there is a market and the studios will take note. These guys are looking to the future as much as anybody. |
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#31 | |||
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Global Moderator
Join Date: Jun 2004
Location: .US
Posts: 9,127
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Quote:
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#32 |
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Registered User
Join Date: Sep 2004
Posts: 597
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#33 | |
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Registered User
Join Date: Jun 2006
Location: Jersey (new)
Posts: 1,001
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Quote:
Mel is gruff and opinionated (and relentless), but if you think you are right try to convince him/us. That is part of what makes this interesting. If you think your argument doesn't stand up, bow out gracefully--there is no point in getting huffy...
Progress is a comfortable disease
--e.e.c. |
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#34 | |
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Registered User
Join Date: Apr 2006
Location: The Ansible
Posts: 11,738
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Quote:
Everyone else reading this thread is the audience. You might be thinking that you aren't here for a debate. But you are. You made a post to state a point. If what you were posting was common knowledge and agreed with by everyone then there would have been no need to make the post because things like "I like turtles" can't be unproven and "cloud often look white" is generally accepted as fact. If you think your initial point is still valid or that Melgross is wrong then use Google to find sources that can backup your point or invalidate his. Most of us are here to learn something, so school us. ![]() |
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#35 | |
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Global Moderator
Join Date: Jun 2004
Location: .US
Posts: 9,127
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Quote:
$1.99 an episode is not cheaper than a rental, unless you compare it to renting a full movie. One DVD of a TV show often has eight episodes. |
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#36 | |
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Registered User
Join Date: Jun 2008
Posts: 8
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TV shows on AppleTV useful? Yes.
Quote:
On the ATV, my girlfriend and I have recently been watching (or rewatching) Deadwood, Rome, (soon) The Pretender, and Star Trek: Enterprise. I could go buy the DVD sets for those but it would cost a lot more (especially for the HBO shows -- sheesh) and then it takes time to either copy or rip the content to media that all the computers/AppleTV can get to and I have better things to do. I've also recently been trying to reduce the physical space that my DVD collection consumes so no point in buying big boxes of TV show seasons. With the exception of darkly-lit scenes in Deadwood and Rome, the H.264 compression/resolution-scaling hasn't been noticable on a 42" HD screen. I chalk that up to HBO providing poor-quality material (probably the same data used for the DVDs). And then there's the possibility of becoming interested in other TV shows that we've never seen before. It's a lot cheaper and more convenient to sit on the couch and push "Purchase for $1.99", then "OK", then "Play" than it is to even bother with Netflix and wait a day or five for the discs to show up. Nevermind going to the store, if it's not 3am or whatever, burning $4.50/gal gas (California here) in the process, etc. As far as the ATV goes, there's entertainment to be found besides TV shows and movies. My g/f, a near-technophobe, has recently discovered the large selection of French language podcasts, for example, and has really been enjoying them. She's started browsing the other podcasts as well, with much interest. And the best part of it is, we can do this together without huddling around a computer screen/keyboard/mouse. I considered a Mac Mini but the requisite dollar/time investment wasn't in its favor at the time. Maybe in the future, though. Just my $0.02 USD. ![]() |
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#37 | |
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Registered User
Join Date: Sep 2004
Posts: 597
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Quote:
But true, when you look at it that way, $1.99 is not cheaper, but it is certainly more convenient if you just missed one episode.. |
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#38 |
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Registered User
Join Date: Sep 2004
Posts: 597
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#39 | |
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Registered User
Join Date: Apr 2006
Location: The Ansible
Posts: 11,738
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Quote:
One hour shows are about 42 minutes long. They tend to have 3 to 4 episodes per disk. |
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#40 |
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Global Moderator
Join Date: Jun 2004
Location: .US
Posts: 9,127
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On hour long shows, yes, it's four. If it's half hour shows, then it's often eight.
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