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October 13, 2005

Apple DRM’d videos for $1.99, where’s the market?

television, music — by TDavid @ 10:19 am PST

Mike Torres from MSN Spaces ponders the new iPod video pricing:

The one thing that I haven’t quite figured out yet. Why would anyone pay $1.99/ea for music videos with copy protection built in? What makes a video worth $1.00 more than a song - and why would you want to keep it forever? Compare this to MSN Video’s model of short commercials before free music videos, and I think I like that model a lot better. I don’t need to have music videos in my pocket if they’re going to cost that much. And seriously - what’s Apple’s fascination with U2?

You know, I wouldn’t be too surprised if a bunch of people do buy these videos from Apple. When Steve Jobs said the average iTunes subscriber purchased 60 songs, I did a double take. I’ve purchased zero, nadda, not even one iTunes song.

In fact, I’ve purchased a small handful of online tracks from all music services combined. And no, I’m not going the illegal route, I just prefer to buy the CDs and burn my own unprotected MP3. When in front of the computer listening to the radio or subscriptions appeals more to me than shopping the iTunes store. I have subscribed to various services on/off like Rhapsody, Napster and Y! Music which I think is a far better way to listen to music on the computer. You can listen to a library of one million plus songs, and growing, and not clutter up your own hard drive.

So what kinds of video might make me reach for the plastic? Perhaps older, out of date videos that aren’t available on DVD, because this is the only legal way to get them, isn’t it?

Buying TV shows sans commercials the next day from ABC only doesn’t interest me that much because I’m not that into ABC’s current programming. Now if/when we are talking FOX (The Simpsons) or NBC (Las Vegas), I could become more interested. Also, we can already PVR the shows on the main network in HD and watch them back that way, so where is the incentive?

Those without TV, those who want to transfer — legally — the videos unreleased on DVD to their new video iPods. Those who love ABC programming and want to take the next day’s show with them to work or play. Those who have more disposable income fit the Apple prime demographic.

There’s the target market, I guess. But then again, Apple has a long standing reputation, with a small few exceptions, of being more expensive.

I see why they went with $2 a video though because when the season comes out on DVD in a year or so, 24 or so episodes will sell for around $30-60 retail. I’m sure the movie studio arrogance is also at work here. If you take $2 x 24 = $48 USD, or right in the ballpark for that valuation.

No bonus content, unfortunately
Contrary to the DVD set, what is missing with these $2 videos is any sort of bonus material. If one version of the TV show could air on TV and the next morning’s version would show up in iTunes store with some bonus content then again my interest — and many others perhaps too — in possibly purchasing one would be increased. How tough would it have been to have gotten some extra content to pack in with each show? They managed to get commercial-free content from ABC. How about some outtakes, bloopers, director/actor commentary?

Overall, I’m not their target video customer anyway. I’ll just PVR or wait and buy the video and get the whole season, with all the extras and goodies. My wallet fetching can wait. Apple is betting on people like me not being their primary customer base, they want people who cannot wait and don’t mind the missing bonus features, I’m sure. People who must take their video powered iPod in public and watch last night’s TV show or listen/watch their favorite artists videos.

Time will tell.

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  1. […] Apple very well might be to credit with their iTunes video store which has sold one million videos in the first 20 days. I wrote on Oct 13: “You know, I wouldn’t be too surprised if a bunch of people do buy these videos from Apple.” […]

    Pingback by Make You Go Hmm: » NBC nightly news to be streamed free online starting Nov 7 — November 2, 2005 @ 6:43 am PST


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