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UltraViolet Market Trends:

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    UltraViolet Market Trends:

    In the UK, the largest retail chain, Tesco (also the 3rd largest in the world), offers a Vudu like service out of their Blinkbox product. Blinkbox is like Redbox in the U.S..

    The head of Tesco's division:
    Michael Comish, CEO of Blinkbox/Tesco Digital Entertainment, told Peve Conference delegates that it had been "a matter of timing" that Tesco and UltraViolet hadn't been working together.

    "At the moment, Tesco is a massive physical retailer (of entertainment) and a smaller digital one," Comish said. ""I expect that to switch around, and we will do everything in line with our customers desires."

    A few weeks ago, I had occasion to be in a pawn store to liquidate a Bluray player that had been collecting dust in my garage. I noticed they had several stacks of DVDs prominently on their counter. The clerk who checked me out told me they had stopped taking DVDs. According to him, so many people were selling their DVDs and instead going to streaming services that the pawn store had decided to just sell off their remaining inventory and stop taking any new.

    I took a copy of "Gothika" off his hands for $2.00 and brought it to WalMart to add to my 1080p UV collection for $5.00. It then went with the rest of my physical media into a box in my garage.

    It is very clear too that at least in the company that I keep, about half of the households have dropped broadcast content delivery out of their MRC (monthly reoccurring charges) and instead have gone to streaming only.

    The quote from Mr. Comish just goes to reinforced what I understand to be a widely held belief in the entertainment industry. That being consumers are moving in a mass exodus fashion to streaming sources for their entertainment content. It seems clear as good crystal to me that is the case. What we are seeing is simply the economic invisible hand moving to fulfill the desires of entertainment content consumers.

    #2
    Re: UltraViolet Market Trends:

    There is a new report out that compares VOD EST and rental market-share of different retailers.

    In the EST market, which is the one that matters as far as Ultraviolet,

    iTunes: 65%
    Amazon Instant Video: 10%
    Xbox Marketplace: 10%
    Other: 16%

    This means that vudu has less than 10% total share. We have a long way to go before iTunes starts feeling competition from UV retailers. At least until Amazon or Xbox becomes a UV retailer.

    In the Rental Market:

    iTunes: 45%
    Amazon Instant: 18%
    Vudu: 15%
    Xbox Marketplace: 14%
    Other: 8%

    Much better here, but doesn't matter in terms of UV competiton.


    Full Report

    Comment


      #3
      Re: UltraViolet Market Trends:

      How much does it cost to rent a movie on iTunes? Not that it matters since we don't have access to iTunes. I have heard that we could watch iTunes movies on Roku if we downloaded an app called "Plex" but I don't think it will allow you to search the iTunes library and I am not about to load iTunes on my computer again.

      Redbox is coming very soon and if they are priced where an online rental "should" be and if they allow you to watch the entire movie before your time runs out then I would expect to see them in second place fairly quick. We rarely rent movies from Vudu because of the cost and since we can drive down the road and pick up a movie for $1.50 at RedBox.

      Comment


        #4
        Re: UltraViolet Market Trends:

        Originally posted by LuzRinggold View Post
        How much does it cost to rent a movie on iTunes? Not that it matters since we don't have access to iTunes. I have heard that we could watch iTunes movies on Roku if we downloaded an app called "Plex" but I don't think it will allow you to search the iTunes library and I am not about to load iTunes on my computer again.

        Redbox is coming very soon and if they are priced where an online rental "should" be and if they allow you to watch the entire movie before your time runs out then I would expect to see them in second place fairly quick. We rarely rent movies from Vudu because of the cost and since we can drive down the road and pick up a movie for $1.50 at RedBox.

        Plex lets you add an iTunes library as a channel. It don't work great, but does work. Much more slick is the AppleTV set top box linked to the iTunes in the house. That is really slick.

        I have both a Roku XD and AppleTV. If I am going to be watching something from the iTunes library (pod-casts, etc), I like to do so from the tv connected to the AppleTV box.

        Comment


          #5
          Re: UltraViolet Market Trends:

          Originally posted by echopulse View Post
          There is a new report out that compares VOD EST and rental market-share of different retailers.

          In the Rental Market:

          iTunes: 45%
          Amazon Instant: 18%
          Vudu: 15%
          Xbox Marketplace: 14%
          Other: 8%

          Much better here, but doesn't matter in terms of UV competiton.


          Full Report

          Mr. EchoPulse,

          Holy smoke Apple is clobbering the sell-through market.

          That is 2012, though. Also, the market as a whole is growing rapidly. One report said 130%+ per year.

          I personally seriously doubt their market leader status will stay unrivaled for very much longer. It is just that they had a toe hold early on.

          As packaged media sales continue to decline and the VoD industry expands, I would expect Apple's sales figures to stay about flat line, while others start to grow with the market.

          Remember, UV is only about 18 months since advent. The consumer market place is quickly getting saturated with the purple logo on their packaged media. This will invariably lead to a spike in acceptance as more consumers begin to enjoy the benefits of UV as a delivery method.

          It was the studios who ended the Bluray/HD-DVD debate. It is the studios who are too electing UV as the delivery method. As the suppliers of the content, their decision matters most.

          -Walter

          P.S. the report does not mention what percentage of the D2D sales the respective companies hold, but I do know Apple has 0% of the D2D market and Amazon is matching them with 0% of the market as well.

          Comment


            #6
            Re: UltraViolet Market Trends:

            ...BTW, congratulation to Vudu making it into third place behind Apple in first and Amazon in second.

            I can remember when Vudu was an obscure service.

            Then there was a lighting bolt with the WalMart purchase and then again with the UV -> D2D service. Their rise from obscurity has been remarkable.

            I for one am a big fan of their iVoD service. The quality is superb and library remarkable. The addition of their UV->D2D service has sealed the deal for me.

            Neither Amazon nor Apple has a comparable offering to what Vudu is bringing to the iVoD market.

            Comment


              #7
              Re: UltraViolet Market Trends:

              Originally posted by Walter-S_North_Carolina View Post

              Remember, UV is only about 18 months since advent. The consumer market place is quickly getting saturated with the purple logo on their packaged media. This will invariably lead to a spike in acceptance as more consumers begin to enjoy the benefits of UV as a delivery method.
              Good point! UV is still very young. Heck, most employees at Walmart don't even know what VUDU is. They think it's some kind of black magic.

              Something else to remember is that UV is also starting up in other markets like Australia, France, Germany, and New Zealand. Also, other service providers like M-GO starting up that will support UV.

              Although slowly, UV is growing and I don't think it's really fair to compare UV to iTunes at this point.

              Comment


                #8
                Re: UltraViolet Market Trends:

                Originally posted by Walter-S_North_Carolina View Post
                Mr. EchoPulse,

                Holy smoke Apple is clobbering the sell-through market.

                ...
                I don't know why? AppleTV is my least used device because all the digital copies I own are in HDX on Vudu except for 5. All the digital copies I own on Apple are SD except for 2 so I would rather use Vudu first, CinemaNow second, Amazon Instant Video third and Apple last.

                Comment


                  #9
                  Re: UltraViolet Market Trends:

                  Originally posted by lujan View Post
                  I don't know why? AppleTV is my least used device because all the digital copies I own are in HDX on Vudu except for 5. All the digital copies I own on Apple are SD except for 2 so I would rather use Vudu first, CinemaNow second, Amazon Instant Video third and Apple last.

                  Just the carry over toe-hold they have from a decade of iTunes users.

                  iVoD is still a very new market. They have a large market share of a new market, but I doubt they will do anything but stay even as everyone else grows as the market grows. That is the only thing that I can guess. The report cited user's liking the Apple store/interface. Perhaps that is it too. Vudu can take a lesson from the Apple usability text book.

                  I am like you. I own no content on iTunes. I just use it to view Podcasts and my disney rips. Same with Amazon. I use Amazon to view Prime, but own no content from them except for books for the kindle.

                  Comment


                    #10
                    Re: UltraViolet Market Trends:

                    Originally posted by LuzRinggold View Post
                    Good point! UV is still very young. Heck, most employees at Walmart don't even know what VUDU is. They think it's some kind of black magic.

                    Something else to remember is that UV is also starting up in other markets like Australia, France, Germany, and New Zealand. Also, other service providers like M-GO starting up that will support UV.

                    Although slowly, UV is growing and I don't think it's really fair to compare UV to iTunes at this point.

                    I agree except for the part where you say UV is growing slowly. I have to take exception to that.

                    In just over 18 months, UV has over 9,000 titles. No other media format has had such acceptence. This is a new high water mark for acceptance.

                    Comment


                      #11
                      Re: UltraViolet Market Trends:

                      Originally posted by Walter-S_North_Carolina View Post
                      I agree except for the part where you say UV is growing slowly. I have to take exception to that.

                      In just over 18 months, UV has over 9,000 titles. No other media format has had such acceptence. This is a new high water mark for acceptance.
                      I understand that having that many titles is a major accomplishment, but what I mean by slow growth is more the user/customer base and I guess I was thinking more in terms of rental with VUDU and CinemaNow more than just vanilla UV. Also, D2D has really come to a stand still over the past month. Finally, there are still plenty of other studios who have not accepted UV that is holding UV back from really competing with iTunes. Disney getting on board and MGM making their entire library available for D2D would probably kill iTunes in my opinion.

                      And what's up with CinemaNow? Their D2D service is still in beta and they have not added any new titles since 12/21/2012!

                      Comment


                        #12
                        Re: UltraViolet Market Trends:

                        Originally posted by LuzRinggold View Post
                        I understand that having that many titles is a major accomplishment, but what I mean by slow growth is more the user/customer base and I guess I was thinking more in terms of rental with VUDU and CinemaNow more than just vanilla UV. Also, D2D has really come to a stand still over the past month. Finally, there are still plenty of other studios who have not accepted UV that is holding UV back from really competing with iTunes. Disney getting on board and MGM making their entire library available for D2D would probably kill iTunes in my opinion.

                        And what's up with CinemaNow? Their D2D service is still in beta and they have not added any new titles since 12/21/2012!

                        Good point. There is a difference in acceptance between number of titles and number of simultaneous streams (a.k.a. people watching movies at any given time). I stand corrected.

                        As far as CinemaNow, the company which backs that service has been steering down bankruptcy. It doesn't surprise me they are slow to update their catalog.

                        Comment


                          #13
                          Re: UltraViolet Market Trends:

                          In ten years, the iTunes store has accumulated at least 400 million user accounts with credit card numbers. That is a huge user base, but of course not all of them purchase movies. A lot of these accounts will be used mainly for iPhone apps and some music purchases. If only 1% of users purchased a movie, that would be 4 million people buying movies. That's huge.

                          We don't know a whole lot about the number of vudu or UV users. We know there are 12 million accounts. But what we don't know is how many people have an account because they opened up the flixster app on their iPhone and were given an account, and never use it. I would suspect at least one out of 10, so maybe a million accounts aren't being used.

                          Last Summer, a Lionsgate spokesman said that only 150K UV copies of The Hunger Games were activated, and the disc sold several million copies. That was after at least a few months after the disc was sold. I'd like to see some more recent numbers from a recent blockbuster release like Skyfall, or The Hobbit.


                          In the last few months there haven't been many new UV enabled titles added. A lot of studio's that support UV still have a lot of missing titles from their catalog. If all the supporting studio's enabled all the titles that are available on vudu that would add at least 2,000 more titles, and that's not including MGM. That's not including other smaller studio's. There are 16,000 movies on vudu that aren't Disney.

                          Comment


                            #14
                            Re: UltraViolet Market Trends:

                            Originally posted by Walter-S_North_Carolina View Post
                            As far as CinemaNow, the company which backs that service has been steering down bankruptcy. It doesn?t surprise me they are slow to update their catalog.
                            I didn't know that BestBuy was having financial troubles...

                            Comment


                              #15
                              Re: UltraViolet Market Trends:

                              Originally posted by echopulse View Post

                              Last Summer, a Lionsgate spokesman said that only 150K UV copies of The Hunger Games were activated, and the disc sold several million copies. That was after at least a few months after the disc was sold. I'd like to see some more recent numbers from a recent blockbuster release like Skyfall, or The Hobbit.

                              Mr. Echopulse,

                              If I understand you correctly, you are suggesting the consumer acceptance of UV has been troublesome and below expectations. You may be right. I honesly do not know.

                              However, allow me to play devil's advocate:

                              A few months after Hungergames was released in packaged media with a UV insert, an estimated <10% of the consumers elected the UV copy as well. This is indicated by the activation ratio of the UV copy provided inside the packaged media.

                              Now, the question is does packaged media see a decline in sales.
                              Answer='YES'

                              Does iVoD see an increase in sales
                              Answer='Yes'

                              Is the consumer market moving to iVoD in lue of packaged media
                              Answer='Yes'

                              Six months after the advent of UV, Hunger Games is shipped with a UV insert. It sort of sounds like to me that ratio (estimated of ~1:10) is about what I would expect. I know I have Hunger Games in my UV locker from redeeming the UV code in the Bluray. My son got it as a Birthday Gift. He likes to be able to tote it around on his Kindle Fire via Flixster and watch it on the school bus.

                              Now over 18 months in, the purple UV Logo is everywhere.

                              However, I do know of a lot of people who have UV codes in their recently purchased Bluray titles that they could care less about redeeming. They have just not bought into the UV concept yet.

                              I do think this will change as more and more people look to get their content via a streaming cloud service instead of through packaged media. All indicators are this trend shows no sign of reversing.

                              Eventually, folks will go back to their purchased Bluray titles, fish out the UV redemption codes, and redeem them into their UV lockers. I would estimate the Lionsgate executive will be able to report a ratio of 1:2 after about three years of Hunger Games having been released.

                              this is just speculation on my part though. I must admit.

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