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Ultraviolet's Attempt to Corner the Market

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    Ultraviolet's Attempt to Corner the Market

    I stumbled upon the below article.

    It speaks very well to the attempt in 2012 by Ultraviolet to become the presumptive choice for non-theatrical movie consumption.

    The article suggests their success has been erratic. I differ with this assessment. I believe they have accomplished the cornering of the market with Disney shutting down their Keychest, there is simply no one else besides Amazon and iTunes which are in the market.

    Both iTunes and Amazon do not have the footing Ultraviolet has at this point for cloud based distribution of consumer film industry media. After all, Ultraviolet is backed by movie studios. iTunes and Amazon are not.

    Therefore it is pretty easy to guess who will end up winning and now on the cusp of Q2 in 2013, I feel it can actually be said Ultraviolet has successfully cornered this market.


    CLICK HERE
    ~article by David Mumpower

    #2
    Re: Ultraviolet's Attempt to Corner the Market

    IMO that article is incorrect on most of its major details

    UltraViolet isn't a cloud storage service at all, it's just a rights locker that can be used by the actual "cloud" streaming services.

    And "at its core" it's in no way an attempt to "eliminate middlemen" - those middlemen are the ones selling (physical or digital) the content, streaming it, and building hardware and software to play it. Without agreement and cooperation of the "middlemen"/streaming services (for example, to stream content purchased from another service because it's in the UV locker), it would not exist...

    Comment


      #3
      Re: Ultraviolet's Attempt to Corner the Market

      Originally posted by Jake View Post
      IMO that article is incorrect on most of its major details

      UltraViolet isn't a cloud storage service at all, it's just a rights locker that can be used by the actual "cloud" streaming services.

      And "at its core" it's in no way an attempt to "eliminate middlemen" - those middlemen are the ones selling (physical or digital) the content, streaming it, and building hardware and software to play it. Without agreement and cooperation of the "middlemen"/streaming services (for example, to stream content purchased from another service because it's in the UV locker), it would not exist...

      I personally feel Mr. Mumpower has a good understanding of what UV is. Also, the middle man he is referring to are the ones who facilitate the purchase of physical media. Those go away in a UV world and make consumer distro a more profitable process, since it has intrinsic economies associated with a digital medium.

      It is true the streaming providers like Vudu & Flixster could be considered "middlemen". However, these are simplistic when in comparision to the distro process of physical media.

      Does Vudu own a warehouse where tracker trailers full of newly minted optical disks arrive and need be subsequently trucked around to retail outlets? Are they concerned with fuel costs, interstate transport, retail shelf placement, etc....

      I do know you know the technology better then I and defer to you on it, but the big picture is movie studios are well served with a distro model where there are no tracker trailers involved and media is made available litterally at the speed of light.

      Here is a quote from it;
      "When a movie is released into theaters, exhibitors split the revenue with the distributor. When a movie is released on home video, revenue is shared with the store facilitating the transaction. A perfect digital distribution system, on the other hand, would have only the financial outlay for transactional expenses and digital storage/ & maintenance. "

      Comment


        #4
        Re: Ultraviolet's Attempt to Corner the Market

        Interesting perspective from the author. He compares UV's 10 million accounts to iTunes 400 million. The iTunes music store opened 10 years ago. And they also sell movies, books, IOS apps, and TV shows. It's almost a requirement for anyone who owns an iPod, iPhone or iPad. That's why it has so many users. I would be willing to bet that a small fraction of those regularly buy movies from the store. He also notes that UV is changing the rules regarding Disc to Digital because it wasn't a popular program. I don't think that is the reason. At Home Disc to Digital was always part of the plan, I just don't think they were able to get it ready as early as they wanted to launch it.

        To truly gain mass marketshare, we need more stores to launch UV compatibilty.

        Amazon Instant
        LoveFilm
        XBox MarketPlace
        blinkbox
        Google Play

        With any 2 of these we will be unstoppable!

        Comment


          #5
          Re: Ultraviolet's Attempt to Corner the Market

          Although there have been great strides with UV, one has to wait and see what Disney will do. Will Disney ultimately jump on the UV bandwagon or will they just stay the course? Does it really matter? It seems that UV is forging ahead just fine without Disney.

          Despite Disney, more and more "GPs" (members of the General Public) are discovering the power and convenience of UV.

          Take a look at the list of upcoming blu-ray and DVD releases that include a UV digital copy. Recent "early" digital releases - some at very attractive prices - seem to be gaining traction. It is very possible that we are in the midst of a paradigm shift regarding (Blu-ray/DVD) disc verses digital. It reminds me of the Compact Disc to MP3 revolution.

          It's a very exciting time for those of us who have already embraced digital movies / TV files and are avid supporters and users of services such as Vudu.

          Comment


            #6
            Re: Ultraviolet's Attempt to Corner the Market

            Originally posted by nycomet View Post
            Although there have been great strides with UV, one has to wait and see what Disney will do. Will Disney ultimately jump on the UV bandwagon or will they just stay the course? Does it really matter? It seems that UV is forging ahead just fine without Disney.

            Despite Disney, more and more "GPs" (members of the General Public) are discovering the power and convenience of UV.

            Take a look at the list of upcoming blu-ray and DVD releases that include a UV digital copy. Recent "early" digital releases - some at very attractive prices - seem to be gaining traction. It is very possible that we are in the midst of a paradigm shift regarding (Blu-ray/DVD) disc verses digital. It reminds me of the Compact Disc to MP3 revolution.

            It's a very exciting time for those of us who have already embraced digital movies / TV files and are avid supporters and users of services such as Vudu.

            Mr. nycomet,

            we are the early adoptors. I fear the secret has leaked out though.

            -Walter

            Comment


              #7
              Re: Ultraviolet's Attempt to Corner the Market

              In a traditional sense, you could consider the retail outlets like Wal-Mart and Best buy the middleman. The Digital Equivalent would be vudu and CinemaNow. But I don't think that's the middleman he is referring to. The real middleman is Anderson Marketing, in Wal-Mart's case. That isn't needed with digital.

              Also, the number of UV redeemable titles has more than doubled in the last month. Flixter has 600. And vudu has many that Flixster does not. I think that vastly increases the number of people that are exposed to UltraViolet. They just need a marketing campaign to better explain it, so that people who have one will actually use it. If everyone who bought hunger games actually redeemed it, we would have well over 10 million accounts.

              Comment


                #8
                Re: Ultraviolet's Attempt to Corner the Market

                I've often said UltraViolet would give the studios the kind of stranglehold on movies that the record companies lost to Apple.

                Either way the conversion to digital is more profit in the studios pockets. No more retail stores, no more returns, no more huge production and shipping costs, more fixed (non-noncompetitive) pricing, no used products in the marketplace. Etc.

                I love digital media for so many reasons but the consumer ends up paying for it in the end and the producers just make more money, at least longer term. Apple with iTunes and music did kill the profits in the industry for a long time, but everyone learned form that and no one wants a race to the (pricing bottom) or monopoly again.

                What I really want is a flat fee and to watch whatever I want as much as I want, with day and day release, like to pretty much get with streaming music services. But again no want wants a race to the bottom again. Of course music has always given everything away with radio, where movies were always a pay thing with theaters.

                Comment


                  #9
                  Re: Ultraviolet's Attempt to Corner the Market

                  Originally posted by echopulse View Post
                  In a traditional sense, you could consider the retail outlets like Wal-Mart and Best buy the middleman. The Digital Equivalent would be vudu and CinemaNow. But I don't think that's the middleman he is referring to. The real middleman is Anderson Marketing, in Wal-Mart's case. That isn't needed with digital.

                  Also, the number of UV redeemable titles has more than doubled in the last month. Flixter has 600. And vudu has many that Flixster does not. I think that vastly increases the number of people that are exposed to UltraViolet. They just need a marketing campaign to better explain it, so that people who have one will actually use it. If everyone who bought hunger games actually redeemed it, we would have well over 10 million accounts.

                  Good point. I would diverge from you on one point though. The old adage, "Build a better mouse trap and the world will beat a path to your door." applies I think.

                  I do not think marketing is needed for this product in the age of social media. Word will get around soon enough.

                  I do not remember ever seeing an iTunes commercial and yet, how many users do they have?

                  When you have a win-win setup (content providers win, consumers win) then it will just as you say be a paridigm shift.

                  Comment


                    #10
                    Re: Ultraviolet's Attempt to Corner the Market

                    Originally posted by Walter-S_North_Carolina View Post
                    I do not remember ever seeing an iTunes commercial and yet, how many users do they have?
                    I'm not certain as of today. As of 24 months ago they had 200 Million accounts. That's not emails. Or one time. That was accounts linked to actual active credit cards. Apple has exploded into many new markets / products since then. However, that's also Music, Movies, Phone / Tablet Apps, and Computer Software accounts. How many use it for Movies at least part of the time is hard to say. Still way more than UltraViolet but then iTunes has been around forever.

                    Comment


                      #11
                      Re: Ultraviolet's Attempt to Corner the Market

                      I will dutifully consider everyone's comments when I write my next column. Thanks for linking.

                      Comment


                        #12
                        Re: Ultraviolet's Attempt to Corner the Market

                        Originally posted by jeremymc7 View Post
                        I'm not certain as of today. As of 24 months ago they had 200 Million accounts. That's not emails. Or one time. That was accounts linked to actual active credit cards. Apple has exploded into many new markets / products since then. However, that's also Music, Movies, Phone / Tablet Apps, and Computer Software accounts. How many use it for Movies at least part of the time is hard to say. Still way more than UltraViolet but then iTunes has been around forever.

                        Mr. Mumpower reports in the article, 400mil active current iTunes accounts. Ultraviolet has nine, or in other terms, two percent. Still, iTunes has been around for 13 years. Ultraviolet has been around for one (in a practical sense).

                        I have accounts with both. I have never purchased a movie through iTunes. I use it for pod-casts mainly. My guess is most people do not use iTunes for movie purchases. In this case, they are not really in the same market.

                        I think 2013 will be a big UV year. Already we have WB making a big splash in Q1.

                        Comment


                          #13
                          Re: Ultraviolet's Attempt to Corner the Market

                          I've always thought it would be nice to have the ability to transfer digital rights. This has been brought up before. IE if you die you can't leave your digital collection to someone else to add to their's. At least with iTunes. UltraViolet gets pretty close though.

                          Point being that digital media is never "used" and often more than physical media with is often discounted new, available used for nothing for the most part, and cost more to get into customers hands.

                          You should have to the ability to sell off thousands of dollars of digital media if you need to. I'm still waiting to hear the story where someone sells their Ultraviolet account or for a fee allows you to "rent" access to their collection. UV makes it pretty easy to manage but almost as easy to get caught.

                          Comment


                            #14
                            Re: Ultraviolet's Attempt to Corner the Market

                            Right after I made the post about additional UV providers launching, I found out that Redbox Instant has launched out of beta. It hasn't added UV capability yet, but it's expected to by early summer (June) That's not too long, and will expose more people to UV!

                            Comment


                              #15
                              Re: Ultraviolet's Attempt to Corner the Market

                              Originally posted by echopulse View Post
                              Right after I made the post about additional UV providers launching, I found out that Redbox Instant has launched out of beta. It hasn't added UV capability yet, but it's expected to by early summer (June) That's not too long, and will expose more people to UV!

                              Damn, dog!

                              They better start ramping up the gig-pipes in the core routers. A lot of people are going to be infected with the UV-Purple bug and beating a path to the door.

                              Comment

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