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The death of video rentals comes a step closer

Lionsgate CEO Jon Feltheimer told a group of industry analysts this week that the movie studio has inked digital distribution agreements with Best Buy and Blockbuster.

Feltheimer is generally believed to be a reliable source, based on his accurately leaking news last August that the studio would offer its wares through Apple's iTunes online store. Feltheimer was proved correct when the official announcement confirmed his comments in February.

In addition to Apple, Blockbuster and Best Buy, Lionsgate also has digital distribution deals in place with Amazon, Microsoft and Wal-Mart.

Best Buy's imminent entry to the movie download business lags that of competitor Wal-Mart by several months. To date, Wal-Mart's offering has failed to generate much interest, however, partly due to high prices and a variety of restrictions on the service that preclude DVD burning or shifting the content between devices.

Blockbuster's intention to offer digital movie downloads has been expected since the video rental firm's biggest rival, Netflix, inaugurated its movie download service earlier this year.

Blockbuster spokesperson Randy Hargrove told Ars Technica "We intend to offer a movie download service, but we have not provided any details on timing or anything else."

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I dont like this...
By daftrok on 6/2/2007 4:59:58 PM , Rating: 2
Is it really that bad to wait an entire day to get a couple DVDs in the mail? If you are downloading these not only will it be time consuming and energy consuming, but is also a bit on the pricey side. So instead of offering movie downloads, why don't you just make new releases DVD rentals $1.99 and the rest $0.99 cents at the store and $9.99 a month for 2-3 DVDs at a time with no late fees for mail delivered DVDs?




RE: I dont like this...
By Kuroyama on 6/2/2007 7:16:34 PM , Rating: 2
Netflix already has a download service that is included for free (at 1 hour per month per dollar of your current monthly fee). Movies start showing within about 15 seconds of selecting them (it adjusts quality to your DSL speed). I find it perfectly acceptable to watch on my 37" TV on only a 768kbit slow DSL connection. It's quiet convenient and nice when I spontaneously feel like watching something, although I can't be picky as their selection is limited primarily to classics and B movies.


RE: I dont like this...
By Hare on 6/3/2007 3:07:52 AM , Rating: 2
quote:
Is it really that bad to wait an entire day to get a couple DVDs in the mail?
Or to actually visit a brick & mortar store down the block :P

I personally would use these online rental services if they would offer higher quality. I wouldn't mind waiting for an hour or two. At least here in Finland few people have less than 2mbps connections and those that do aren't going to rent movies online...


RE: I dont like this...
By Ringold on 6/3/2007 3:40:15 AM , Rating: 3
I don't get the energy arguement you made there. I can't speculate how much energy is expended in the process of creating the physic medium, stamping media on to it, creating packaging, placing medium in packaging, creating operating and constantly maintaining a complex distribution network, shipping the DVD to where it needs to go while passing through government (USPS) hands, being hand-delivered to an individuals mail box, and then ultimately sent back to repeat the process again for the next order, but it sure sounds like a hell of a lot of juice to me!

Compare that to a server farm that, instead of doing logistics and mere page serving, is given a fatter pipe and serves millions the same thing over the internet, sans the massive brick & mortar operation. This doesn't even necessarily mean a new server farm will be made; companies like Akamai are experts, apparently, at squeezing more utilization out of existing server resources.

Meanwhile, on the consumer side, will having a CPU idle for a couple hours while streaming to a TV or just to the monitor really destroy the Earth?

Hmm.. Yes, from an efficiency stand-point, downloading seems to be the clear winner. Not for every consumer, and it's not being forced on anybody, but if firms can cut down on capital expenditures then it makes it better for everybody. Wealth creation / productivity increase right before our eyes.


RE: I dont like this...
By daftrok on 6/3/2007 2:39:19 PM , Rating: 2
A CPU? Thats a gross under exaggeration. Idle? Assuming around 1 million people using this, you need to have a server CONSTANTLY running, not to mention virus protection, a decent work force maintaining the machine(s) and on top of that running a PC to play the movie rather than a DVD player (which I assume takes a bit less energy than a computer). Comparing that to a complex distribution network that is already replaced and the only true manual labor done is simply checking to see if the DVD is authentic, slipping it into an envelope and placing it back into an automatic shipping network and simply hand delivering to the mail box (something that is done regardless) takes quite a bit less energy indeed.


RE: I dont like this...
By daftrok on 6/3/2007 2:39:56 PM , Rating: 2
"in place", not "replaced" my bad


DRM Free?
By uglyone888 on 6/2/2007 2:05:48 PM , Rating: 2
Will these movies be DRM free, or will there be a way to remove the security on them by burning to a CD/DVD and then re-copying them back to the computer?




RE: DRM Free?
By Tupolev22m on 6/2/2007 4:41:00 PM , Rating: 2
If they're rentals, I'm guessing not...

Otherwise, I'm still guessing not, but I guess its concievable they could be circumvented.


Eesh
By ascian5 on 6/3/2007 9:21:22 PM , Rating: 2
I really can't see this being successful. I don't think Rhapsody and other instore promotions really took off did they? Besides, don't most DVD players and whatnot already come with a Netflix offer?

I like Best Buy, I do, but it sounds like one more thing for their poor sales people to have to offer to you. Only goes to support my theory that shopping at Best Buy is as akin to real life popup ads as you can get. But I like them... trying to remember why....




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