Apple hints at video rentals through iTunes
Apple Inc. strayed from making any material announcements during its shareholders meeting on Thursday, but did hint that it will offer video rentals through iTunes at some point in the future.
"Timing of this is difficult to determine, but we would expect [iTunes video rentals] sometime in 2008," said PiperJaffray analyst Gene Munster, who attended the shareholder gathering in Apple's hometown of Cupertino, Calif.
No stock split
In a note to clients, Munster noted that an Apple stock split is looking less likely in the near term. "We do not expect a stock split in the next several months (previously we were expecting the company would split the stock)," he wrote. "Apple may be adopting a more Google-like approach (i.e., not-splitting shares and allowing the stock price to move out of historical ranges)."
No iPhone delay
Another key takeaway from the meeting, according to the analyst, was that the company's iPhone remains on track to ship next month. "There have been some rumors suggesting that the iPhone could be delayed," he explained. "Chief executive Steve Jobs confirmed iPhone will be in the market next month (June)."
AT&T won't buy out your existing cell contract
In one final tidbit, Munster noted that non-AT&T subscribers will need to make the move to the wireless carrier on their own if they seek an iPhone.
"The company indicated that Apple and/or AT&T will not 'buy-out' non-AT&T subscribers that are looking to purchase an iPhone, but are currently tied to a contract with another carrier (this is as expected)."
"Timing of this is difficult to determine, but we would expect [iTunes video rentals] sometime in 2008," said PiperJaffray analyst Gene Munster, who attended the shareholder gathering in Apple's hometown of Cupertino, Calif.
No stock split
In a note to clients, Munster noted that an Apple stock split is looking less likely in the near term. "We do not expect a stock split in the next several months (previously we were expecting the company would split the stock)," he wrote. "Apple may be adopting a more Google-like approach (i.e., not-splitting shares and allowing the stock price to move out of historical ranges)."
No iPhone delay
Another key takeaway from the meeting, according to the analyst, was that the company's iPhone remains on track to ship next month. "There have been some rumors suggesting that the iPhone could be delayed," he explained. "Chief executive Steve Jobs confirmed iPhone will be in the market next month (June)."
AT&T won't buy out your existing cell contract
In one final tidbit, Munster noted that non-AT&T subscribers will need to make the move to the wireless carrier on their own if they seek an iPhone.
"The company indicated that Apple and/or AT&T will not 'buy-out' non-AT&T subscribers that are looking to purchase an iPhone, but are currently tied to a contract with another carrier (this is as expected)."
Comments
INCONCEIVABLE!!
Actually, that would be a GTI (Good Thing Indeed!), if it's HD, or at least full DVD quality content, and works with the AppleTV. (which I don't doubt it would)
Munster noted that an Apple stock splut is looking less likely in the near term.
"Chief executive Steve Jobs confirmed iPhone will be in the market next month (June)."
Glancing at the calendar... what's the last day of June again?
Illegal aliens aren't doing jobs Americans won't do...they're doing jobs Americans won't do without a decent wage and benefits.
So then I guess you'd be willing to pay 5 bucks for an ear of corn & 3.65 for a slice of watermelon this summer?!?!
Actually, that would be a GTI (Good Thing Indeed!)...
I agree.
Video Rentals + Touchscreen WiFi iPod + Video Rentals = I'm actually in Heaven!
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www.ITFinanceGuy.com
The header says Apple hinted at movie rentals, but the story says an analyst projects it. Those are not the same thing.
From Mac Rumors, also on MacWorld:
"When a shareholder asked Jobs for high-definition video content on iTunes and asked if his Apple TV could allow him to rent movies, the CEO smiled. 'One never knows,' he said cryptically."
The comment came in reference to a shareholders comment, the speculation (from the analyst) is that he was referring to rentals and not just HD content and the timeframe that Apple could launch a rental service. Take it with a grain of salt, we all know that HD content is coming sooner or later and that Apple could probably make a lot of money as well as add a lot of value to the Apple TV by adding a rental service. I would buy one today if they had a rental service and I'm sure that a lot of other people would as well.
I'm wondering if they plan on doing a iPod upgrade like this anytime soon. I for one, would pass on the iPhone if I could get a touchscreen iPod.
So smart Apple won't put out that iPod yet... In hopes you will double-buy on an impulse. :P
Seeing as many DVD's are below CDN$10, they'd better not charge 5 bucks for a two day rental, otherwise, I'll just go out and buy the DVD. For a self-destructing DRM'd movie file that has a chance of failure, they'd better not charge more than 2 bucks. It had better be viewable on FrontRow and the AppleTV, and be as convenient as possible.
Only then would I make pay for the service.
For a self-destructing DRM'd movie file that has a chance of failure, they'd better not charge more than 2 bucks.
I can't see higher quality movies going for $2. Even self destructing DRMed things. I personally think $4 would be the sweet spot for me, but we'll see...I'm not holding my breath!
So then I guess you'd be willing to pay 5 bucks for an ear of corn & 3.65 for a slice of watermelon this summer?!?!
Wrong thread!
Edit - Time for a new sig anyway!
I can't see higher quality movies going for $2. Even self destructing DRMed things. I personally think $4 would be the sweet spot for me, but we'll see...I'm not holding my breath!
going rate for a rental through a brick and mortar store is $2-$3.50 per movie. Online rental services have a subscription for between $10-20/month. For online delivery one would expect a price on par to better than those prices. $2/movie or $10-$20 a month. Depending on the deal for a monthly fee service they might be able to get away with $30/month, but on a per movie basis $3 for a new release is about as much as they could charge and be competitive.
going rate for a rental through a brick and mortar store is $2-$3.50 per movie.
Here in the Boulder-Denver metro area, we have redbox rentals which are $1 per night (due back the next day by 7 pm). You can walk-up or check inventory on-line, rent online and then pick up later that day at a redbox (which are located outside McDonald's or inside some Walmart's).
Totally cheap and easy.
going rate for a rental through a brick and mortar store is $2-$3.50 per movie. Online rental services have a subscription for between $10-20/month. For online delivery one would expect a price on par to better than those prices. $2/movie or $10-$20 a month. Depending on the deal for a monthly fee service they might be able to get away with $30/month, but on a per movie basis $3 for a new release is about as much as they could charge and be competitive.
Maybe so. And that would be nice.
But I wonder about the bandwidth/infrastructure costs for delivering these higher quality movies. Everyone wants true DVD quality if not some sort of HD. Apple, meanwhile can barely scratch a profit with $1 songs that are, what, .1% as big? .01%? I know, I know--it is all about the hardware sales. But they cannot get hosed on the rental...
And what will drive the studios to agree to super low prices? I wonder what they get for a movie sale from ITS right now? Right now you have gobs of people buying DVDs for $10-20 in stores and some paying %10 through ITS. Sure you can rent Netflicks or drive to blockbuster but both of those require a wait or pre-planning. I imagine that if people can get $2-3 high quality rentals on demand without budging from the couch DVD sales (download and physical) would be in great peril. I'm sure that thought makes studio bean counters' bloods run cold.
Sure--instant download on demand of any movie is coming; there is no doubt it is the future. But I can't see it beeing so cheap just yet...