How much is too much?

January 23, 2008

Seths post called How much for Digital?, was interesting to read.  I think that downloading movies will be a big part of the future.  But, I think the price companies charge will have a huge impact on determining whether this will be a big part of the future.  It will more than likely take a while for this to become popular.I think there is a big opportunity for companies to step forward and offer movie rentals online at a small price.  We as the consumer have become acustomed to paying $3 and $4 for a movie rental.  Why not offer these movies at a price of $.50 or $.75 cents and see how many people would download the movies at this price.  More people are more than likely willing to pay for downloading movies if they are at a small cost.  There is nothing more annoying then paying late fees, and having to return a movie the next day after renting it.  Or getting to a movie rental store – and the movie your looking for is rented. I really like the idea of convience for online movies.”At fifty cents a rental, all desire for piracy goes out the window, replaced by convenience, ease of use and a clear conscience. More important, entire new services show up, habits are built and the studios end up with a direct relationship with consumers who want to hear from them.” The amount of piracy might drastically decrease if the price is cheap to download movies.  It probably would just be a step in the right direction to limit piracy.  But there are always people who would still download movies for free. HBO is jumping on the wagon and adding downloading movies to there resume. I am not familiar with the process of downloading movies from these sites. In dealing with how many times you can view the movie, or how long it is saved on your computer. But it almost seems to bring the topic of the Perfect Storm up from Chapter 2 in dealing with how Sony installed software on music fans computers. I know I wouldn’t want companies installing secret software onto my computer if I paid to download movies.  I found an interesting article called Time Warner: Download Too Much and You Might Pay $30 a Movie in dealing with rate plans they charge customers.What price do you think companies should be charging for online movie rentals, and why do you think this? Mitchell Watts

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11 Responses to “How much is too much?”

  1. cheks900 Says:

    your right. i dont waste my time and money going to the movies when i can watch it free on the net.
    now, if downloads where cheap then it would put bootleggin out of order.
    right now i can get one for $4 bucks(if i wanted to buy one) anyway, great blog.

  2. Tasia Says:

    I’m pretty sure I wouldn’t want to even pay $4.00, when I can just download it for free, or wait for the movie to wind up in Wal-Mart’s $5.00 bin. I’d probably pay $0.50 if I don’t get to keep the movie. Meaning if after I download it, the movie will automatically delete itself. Also that spy-ware type of secret software which the companies may download to my computer sounds like a creepy annoyance. I’d wish the companies would just have a mandatory survey which the customer would just fill out before you are aloud to download (one-time-only type of survey) rather than install software without my acknowledgment. That would be a better way of collecting marekting information, without later getting in trouble for unknowingly installing spy-ware.

  3. davecanvin Says:

    I think the Apple/iTunes model is ideal…. $3.99 for SD and $4.99 for HD. You have to remember, most people don’t really know how to use torrents and download movies….. let alone getting them on their TV to view. This service is targeted towards the normal everyday user. The AppleTV allows you to order the movie on your TV screen on a very simple interface as long as you have a computer with iTunes running somewhere on your LAN. Anyone could really use it easily.

    I think their only barrier is distribution. Apple will have to get the AppleTV in homes, and I think the only way will be a very agressive marketing campaign and distribution in untraditional locations (in Apple’s world anyways) like grocery stores, wal-marts, etc etc.

  4. David McKenna Says:

    I’m more on Tasia’s side then on Dave’s. I think they should charge around $0.50 a movie at first because, like Dave said, most people don’t know how to use torrents and download movies. At $4.00 each no one will be tempted to switch over and so Apple will never gain customers from Blockbuster or people that download for free. The people that do know how to download movies are the ones that are downloading it for free, so why would they now pay to get the same thing.
    If the movies were $0.50, then people would be much more interested and might LEARN to download movies. I know my parents have no interest on downloading movies, but if I told them they can get them for $0.50 I think they’d jump at it.

  5. Tasia Says:

    I think Dave M hit the nail on the head regarding the “learning how to” of downloading. If I had the money to purchase all the movies I wanted to watch, then I’d probably just use the Apple system. But seeing as I don’t, my alterative is downloading. People who download for free, learning to download music doesn’t create a real hassle for them, if it did no one would be bothered and there would be no problems with piracy. Dave C, I know not everyone knows how to download stuff for free off the internet, but once people start downloading everything for free, it’s kind of hard to go back to paying for it.

  6. wattsy Says:

    I agree with the posts above. It would be hard to make the switch over from downloading for free, to paying something for what you are downloading. It would be hard to make the switch over if you are not familiar with the process of downloading movies. Some people would find the switch over a lot easier than others. Companies who provide services to download movies might find it hard to convince the consumer to switch to this process of paying to watch movies online. But once the consumer is convinced than this service could become popular.

  7. davecanvin Says:

    I don’t really think that Apple is trying to target the market of downloaders…. but rather the people who frequent video stores like Blockbuster. If you go to a store like Blockbuster, then you ARE willing to pay often more then $4.00 a movie. By downloading digitally it takes the headaches out of driving to the store and renting and returning discs, having titles out of stock, etc. I don’t know if anyone has seen the interface, but is like an iPod. You scroll through on your TV and can pick a movie and click ok and it starts to download. The learning curve looks very low. It looks so easy for anyone its not even funny.

    By using the logic of the other comments here, people will never pay for songs because you can download them free. This only applies to some people, like myself who can use Limewire or torrents to download for free. Despite this, iTunes has been VERY successful, selling over a billion songs for $1.00 each.

    While no one here, myself included, or someone like Seth Godin wouldn’t pay $4.00 or $5.00 for a movie rental…. there are clearly many people out there that will. I stand by my case, and feel that Apple will make this a very profitable business for themselves.

  8. wattsy Says:

    I agree with you Dave, Apple will most likely make huge profits off this. People most likely would like the convience of downloading movies from home at any time. Apple is well known throughout the world, and a lot of people will remember this company when going to download a movie. There are a lot of loyal customers to Apple.
    I think there is a big portion of the market that would be missed out on if the price of downloading movies was at $4 and $5. This would give a chance for other companies to create competition, and offer movies at a lower price.

  9. Md Romiz Uddin Says:

    I think Apple will never decrease their price. There are many people believe that it is worth to expend money for something better products. I think people will love to have iPhone when they see it first, but price make them pause to buy. $500 for a phone is very expensive.

  10. davecanvin Says:

    Heres a video explaining how easy it actually is….

    $3.00 SD and $4.00 HD according to this infomercial thing. I still think it is very reasonable.

    The Flickr, Youtube, and iPhoto integration is very neat too


  11. […] them for a minimal charge would definately curb the desire for pirating. This was mentioned in Wattsy’s post earlier this week and I think he hit the preverbial nail on the head. Hollywood still has to […]


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