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YouTube challenging Apple's iTunes with major studio movie rentals

post #1 of 17
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YouTube managers officially announced on Monday a new initiative that will see thousands of major Hollywood studio films available for rent from the site, in an attempt to challenge Apple's share of the Video on Demand market.

Starting on Monday and rolling out over the coming weeks, blockbuster releases such as Inception and The King's Speech will be available for rent at "industry standard pricing" at youtube.com/movies, Google's YouTube Product Marketing Manager Camille Hearst and Product Manager Matt Darby confirmed in a blog post Monday.

Based on the initial pricing of Monday's releases, it appears that most recent releases cost $3.99 to rent, while older movies average $2.99. The service is currently only available to users located in the U.S. It is unclear whether

According to the post, many movie pages will feature YouTube Movie Extras, such as free behind-the-scenes videos, cast interviews, parodies, clips and remixes from contributors, as well as reviews from Rotten Tomatoes.

Earlier in the day, the company teased the new mainstream movie rollout, noting that it had begun adding 3,000 new movie titles for rent. In addition to content from major movie studios, YouTube is sponsoring original independent content through several initiatives, such as the YouTube Creator Institute and YouTube NextUp.



Reports emerged late last month that YouTube had reached agreements with most of the major studios, including Sony Pictures Entertainment, Warner Brothers and Universal, to begin offering movie rentals. However, Disney, Fox and Paramount have reportedly passed on the deal over concerns that Google has "not taken adequate steps to stop supporting piracy sites."

Google, which acquired YouTube in 2006 for $1.65 billion, first began offering movies for rent on the site over a year ago, though initial offerings were limited to mostly independent movies. Earlier this year, the company began experimenting with a beta YouTube Rentals program for publishers.



Apple has offered iTunes movie rentals since 2008 and began renting out TV shows last year. In 2010, the company held 64.5 percent of the Video on Demand market, according to research group IHS.

Other competitors in the VOD industry include Microsoft, which captured 17.9 percent of the market last year, Sony, which grabbed 7.2 percent, and Amazon.
post #2 of 17
It's about time Apple should have its own You Tube challenge -- perhaps even better. Combine music, video, arts, images created by Apple products consumers

CGC
post #3 of 17
This is not relevant in the least to Apple's cash flows. The stuff that people download via iTunes is a rounding error in its valuation.
post #4 of 17
Quote:
Originally Posted by AppleInsider View Post

YouTube managers officially announced on Monday a new initiative that will see thousands of major Hollywood studio films available for rent from the site, in an attempt to challenge Apple's share of the Video on Demand market. ...

The trouble is all markets and all audiences aren't equal.

YouTube might have lots of eyes and page views but they've tried making people pay for it before and failed miserably. The kind of people that hang out on YouTube are not going to pay money for rentals. Rentals are harder to convince people of than out and out sales, and sales are hard enough as it is.

Apple has a hard enough time convincing the well-heeled iTunes customers in it's stable that rentals are worth paying for. YouTube has no hope at all IMO.

It will fail like most of Googles other ventures.
post #5 of 17
Quote:
Originally Posted by Prof. Peabody View Post

YouTube might have lots of eyes and page views but they've tried making people pay for it before and failed miserably. The kind of people that hang out on YouTube are not going to pay money for rentals. Rentals are harder to convince people of than out and out sales, and sales are hard enough as it is.

The "kind of people"...

Plenty of people use both iTunes and YouTube. It is not us v them.
post #6 of 17
Quote:
Originally Posted by Prof. Peabody View Post

The kind of people that hang out on YouTube are not going to pay money for rentals.

Cute. Considering that every iOS device EVER has come preloaded with a YouTube app, I guess Apple thinks "the kind of people" using YouTube are the same sort of scum and low life losers buying their products. (Yes, that's my interpretation of your phrase.)
post #7 of 17
Wow, this has been years in the making. Though I still feel like google video should have been in charge of the Hollywood movies, not Youtube. Youtube is for me to show my cats with lazer eyes, not for a major movie title.
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post #8 of 17
Quote:
Originally Posted by anantksundaram View Post

This is not relevant in the least to Apple's cash flows. The stuff that people download via iTunes is a rounding error in its valuation.

It's not about making money off movie rentals, it's about cracking the ecosystem.

It's the same reason for Apple's stricter in-app purchase policies. The primary reason isn't to earn more money from the app store but to get rid of the middle-men.
post #9 of 17
Quote:
Originally Posted by Prof. Peabody View Post

YouTube has no hope at all IMO.

I'm not so sure.

In 12 to 24 months just about every new TV is going to have apps (the higher end ones do already... as we have seen with TVs these features filter down very quickly) and one app that seems to be on every "smart TV" is YouTube.

It also seems like YouTube is ubiquitous among phones and tablets.

So it really comes down to how good the service is. If it's easy to use and works well, and content you purchase works on any device you own, I can't see why people wouldn't use it.
post #10 of 17
I thought YouTube would be competing primarily with Netflix not iTunes? I guess never let truth get in the way of a good headline, right?

Also is this YouTube stuff streaming-only or downloadable like iTunes. I do not like streaming. That's why when I have used it iTunes movie and TV rentals is great.

As people become more mobile and use more mobile devices this heavy move towards cloud services and streaming will put even more pressure on 3G networks.

Yes, use the cloud but FFS use local cache more intelligently as well.
post #11 of 17
Quote:
Originally Posted by sheff View Post

Wow, this has been years in the making. Though I still feel like google video should have been in charge of the Hollywood movies, not Youtube. Youtube is for me to show my cats with lazer eyes, not for a major movie title.

There have been some movies in the past few years where I would have much rather watched funny cat videos for 2 hours on YouTube than some of that Hollywood garbage. Friday the 13th remake? Street Fighter: Legend of Chun Li? My gawd, it was excruciating sitting through those. I can name more rubbish movies but I have thankfully wiped most of the truly forgettable ones from my memory. Thank goodness Thor was bearable, I only watched it because there was nothing else on and I really needed to kill a few hours at the mall.
post #12 of 17
this is not a mature market and big shifts are coming of course, there are a lot of players and apple wont (cant) come to dominate it. But they are aiming to a large healthy chunk of the pie to sell their hardware based on that. And that's what they ll undeniably get (and what they have so far). So not to worry from an apple standpoint.
post #13 of 17
Quote:
Originally Posted by Orlando View Post

The "kind of people"...

Plenty of people use both iTunes and YouTube. It is not us v them.

They probably are, as a whole, distinct demographics, just like Mac and Windows, iPhone and Android, BMW and Ford, so it's likely a valid distinction.
post #14 of 17
Neither iTunes or YouTube comes close to Sky Box Office for movies on demand IMO.
post #15 of 17
Google is the new microsoft, copying everything apple does.

Now Google TV will have movie rentals, via youtube. Just like Apple TV.

Honestly I think this is a mixed bag... google has been moving Youtube towards a paid service for a while now. Some people have stayed and posted stuff like they normally, other people (like me) have moved on. I got tired of the DMCA notices and other bullshit.

I wonder how apple will handle this. Obviously everywhere that has a youtube app will get upgraded to play the on demand movies. That means another "store" in iOS that's not from apple. Will they kill the youtube app, or prevent them from changing it so it can play the movies? More ammunition for android... "we have an un-crippled youtube app!" Sounds like the apple/google war just got stepped up another notch.
post #16 of 17
I just submitted a feedback to youtube site hoping that they'll add "closed captioning" section under "categories". I pretty much doubt they have captions in there. \
post #17 of 17
Quote:
Originally Posted by neiltc13 View Post

Neither iTunes or YouTube comes close to Sky Box Office for movies on demand IMO.

I use 7 kinds of rental buy/ movie services Net Flix >Hulu>Apple TV > Apple ITUNES > Fios >XBOX > AMAZON>>>. ?? for me APPLE IS NOT THE BEST But its the most elegant and fun .
When the movie is over i can play with my photo's or home movies or pod casts .


Any way ?? Who or what is sky box ??


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