Ranting Kenya

Now that the music industry is allowing it’s content go out DRM-free, the music battle is more or less over. I believe that soon, music will be avaiable from all the major labels on all the major services. Apple pioneered the industry, Amazon was the first to fully nail it (in my opinion), and now there’s a baseline from which to judge the rest.

But what about video?

Well, the newest player out there (as of yesteday) is Apple. They started the music revolution (or was that Napster?), and now they look to duplicate that success for movies.

There’s another gorilla out there too, Microsoft (have you heard of them). They’ve been doing this for a while now on Xbox.

Amazon has their unbox service, which has already gone through some major revisions.

Aren’t we on the tail end of a format war right now?

So what’s the deal with all these services? From what I can tell, here is the list of similarities between them:

• They all use some form of DRM.
• They all work on different devices.
• They’re all rental services.
• They’re all unique, just like all the others.

So here are my quick thoughts on each service:

Apple

Pros

• Apple’s biggest advantage is that it’s Apple. Their computers continue to sell, iPods are huge, iPhones are even bigger. They have a highly desirable brand in the public consciousness.
• In a close second place, it’s next biggest advantage is that they have all major movie studios onboard. That’s better than the iTunes music store, and a great place to start.
• The quality of the HD video that Steve Jobs outlined sounded excellent. Finally the Apple TV will have some HD content, and also 5.1 digital audio.
• You can rent your movies through the simplicity of iTunes, or another excellent Apple interface via the Apple TV that you access from your couch.

Cons

• However, unlike the iTunes music store, Apple will have a much harder time since other companies are working on the digital delivery model too. iTunes was revolutionary, but others have seen the virtues of Apple’s product and business models.
• Media companies are getting more savvy, and more wary of Steve Jobs. Many feel that he unfairly compensated the recording industry with his low prices. He has been hailed for negotiating some of the most lucrative business deal for his own company (hello AT&T and the iPhone).
• Another problem, you have to purchase an Apple TV to enjoy these videos from your couch. Another couple hundred dollar investment.
• Figuring out what you can do with these videos is also a problem (but not unique to Apple). Here’s an example from Engadget.

Microsoft – Xbox Live

Pros

• Microsoft’s biggest advantage is probably that there is already 10 million Xbox 360 consoles in the wild. As far as getting content from the net to the TV with some propietary box, Xbox 360 is way out front.
• Similarily, they’ve already been selling videos (both HD and SD) on their service for well over a year now. In the Xbox 360 vs PS3 battle, a headstart is clearly a big advatage to have.
• An Xbox 360 console does far more than an Apple TV. It’s not a dedicated media extender/set-top box/service. It plays games, plays HD-DVD (with appropriate attachment), plays DVDs, and a whole lot of other stuff.
• As much as it doesn’t hurt to be Apple, it doesn’t hurt to be Microsoft. They’re huge, they got fingers everywhere, they have excellent technology, huge amounts of cash, and they’ll be in the for the long haul no matter what.
• Xbox 360s, when connected correctly, can upconvert it’s output to 1080p. This is a minor destinction to most, but not all.

Cons

• However, Microsoft lacks full studio support. Content is clearly king.
• You need to have an Xbox 360 console, and it’s more money than an Apple TV.
• You have to use these “Xbox points“. And it’s not a 1:1 ratio with real money. And you have to buy them in bulk. They’re annoying.

Amazon

Pros

• TiVo integration. What could be better than having your videos already waiting for you on your TiVo?
• Amazon got music right. Low prices, DRM-free, huge collection.
• They also have a working video service right now. As far as I know it’s PC only, but they’re in the game.
• I also think that Amazon has some unique possibilities regarding sales. They could sell you the DVD copy, while allowing you to rent or buy a digital copy that you can watch before the DVD arrives in the mail. This also eliminates that whole rental/purchase issue.

Cons

• How do you get it to the TV?
• Doesn’t have the brand recognition in this space of a Microsoft or Apple.
• There is no HD as far as I’m aware.

Final Thoughts

All in all, now that HD-DVD seems to be on its deathbed (at the hands of Blu-Ray), we’re really on the beginning of another “format war” of sorts. How are you supposed to pick between services? Some work with some ipods, some only with specific hardware, all have strict DRM schemes, none of them have anything to do with purchasing content, none inter-operate either.

However, I believe that this is a battle that we can’t afford to sit out. I’m sure if the movie studios see no sales in this digital space, it will delay the roll out of truly good download services by years. Money really is the only motivation that us as consumers can provide for large companies to develop technology and delivery methods that work for us.

This is also essentially the problem the music industry just went through. How do we trust our customers and allow them to enjoy the content they purchase the way they want?

*laughs* Actually, wouldn’t cable card solve a lot of these issues?