Cuddling up at home with a rented video is a classic weekend hobby for many of us. This year we’ve seen several companies begin to distribute those same videos via the inter-web directly to the home computer. In this commentary I’ll be focusing on two of them: Amazon’s Unbox and iTunes.
Amazon’s Unbox sports a few unique features. The first that caught my attention is that any video you buy they’ll store indefinitely on their servers and allow you to re-download as needed. Second, they’ve moved forward with delivery to Tivo boxes, which connects them directly to home entertainment systems. But their rental offering is where things get a little sticky. Lots of rentals are available from $.99 to $3.99, but they insist that once the video is started it must be finished in a 24 hour period. That’s ridiculous. Didn’t they learn from Blockbuster’s battle with Netflix that late fees don’t work anymore? Let alone going a step further by disabling the consumer’s ability to watch a video at all (after 24 hours from the first push of the play button).
Beyond that, DVDs typically offer bonus footage and featurettes along with the movie. This is an area Amazon Unbox and iTunes struggle with.
iTunes handles the whole rental situation by not offering a rental scheme at all. Their stance is buy a video or go without. The problem here is that buying a video online often is more expensive than buying the DVD, and it doesn’t include any additional features. Also if your hard drive is wiped for some reason you’ll have to re-purchase those videos to download them again.
Until online video renters discover how to distribute their content in a way that makes their suppliers and consumers happy the industry will see lackluster growth.