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8 Replies Last post: Feb 11, 2008 2:20 PM by Chris Breen  
Click to view Macworld's profile News & Columns Bot 6,610 posts since
Nov 30, 2007
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Feb 8, 2008 10:16 AM

Exploring iTunes movie rentals

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Click to view qkarmark's profile New Member 17 posts since
Apr 29, 2005
1. Feb 9, 2008 3:20 PM in response to: Macworld
Re: Exploring iTunes movie rentals
It's pretty clear that the success of iTunes as a content delivery service is gonna mean equal success for movie rentals, but any word on when movie rentals will be available in Canada?
Click to view chase's profile New Member 24 posts since
Sep 4, 2004
2. Feb 11, 2008 8:30 AM in response to: Macworld
Re: Exploring iTunes movie rentals
I can still rent DVDs down the street for $1, and new releases for $1.50. These figures represent a per day, 24 hour rental. And the video store is making money. Plus I can copy/rip & burn those DVDs if I want to; I cannot with Apple's DRM rentals.

I don't see the justification for the huge markup when Apple has no building, no rent, no customer service clerk, no packaging, no shelves to stock, no shoplifting risks, no direct mail advertising, and yet a limited selection.
Click to view Chris Breen's profile Macworld Editorial 2,943 posts since
Dec 11, 2000
3. Feb 11, 2008 9:29 AM in response to: chase
Re: Exploring iTunes movie rentals
Apple's rental prices are hardly out of line with what many movie rental joints charge. Sounds like you've got a sweet deal -- a place nearby that charges little for its rentals. If it has a good selection to boot, you're in clover. Of course you'll be eternally damned for stealing those movies when you rip them, but that's between you and Lucifer.

Regrettably, not everyone has a shop like that. Many people might prefer the convenience of paying what they'd normally pay for a trip across town without leaving the comfort of their couch.

As for Apple's costs, it's hardly able to do this for free. Bandwidth isn't free. Nor are server farms. Nor are the salaries of the people who work Apple's rentals and iTunes Store. And then there's the not insignificant dollars the movie industry is asking for its wares.
Click to view Dan Frakes's profile Macworld Editorial 3,347 posts since
Apr 14, 2003
4. Feb 11, 2008 1:15 PM in response to: chase
Re: Exploring iTunes movie rentals
chase wrote:
I can still rent DVDs down the street for $1, and new releases for $1.50. These figures represent a per day, 24 hour rental. And the video store is making money. Plus I can copy/rip & burn those DVDs if I want to; I cannot with Apple's DRM rentals.

I don't see the justification for the huge markup when Apple has no building, no rent, no customer service clerk, no packaging, no shelves to stock, no shoplifting risks, no direct mail advertising, and yet a limited selection.

The video store buys each video once and then rents it as many times as it can before the DVD is physically un-rentable. Apple and other online-rental services have to pay the studios a fee for each rental. And let's be realistic about overhead: Apple has buildings, data centers, bandwidth costs, technical staff, customer-service staff, PR/ad expenses, etc., etc. Just because you don't walk into a physical store and walk out with a physical product doesn't mean there aren't costs. I wouldn't be surprised if Apple's costs per rental are actually higher than that of a typical mom-and-pop video store.

(If your local video store is inexpensive and convenient enough that you prefer to use it, great. I'm not saying I wouldn't like to pay less for each rental through iTunes. I'm just saying that it's short-sighted to say that Apple has no justification to charge what it does based on your local video store.)

As for copying the movies you rent, do you really think that an inability to steal -- sorry, "copy" -- the movies you rent is a legitimate criticism of any video-rental service?


Dan Frakes | Senior Editor, Macworld
Click to view chase's profile New Member 24 posts since
Sep 4, 2004
5. Feb 11, 2008 1:59 PM in response to: Macworld
Re: Exploring iTunes movie rentals
What an interesting topic; I appreciate the comments Chris & Dan.
Dan, thanks for solving my long curiosity on how video rental stores function.
I actually wondered if each paid a residual % of each rental transaction like a per ticket charge at theaters.

I really had no idea they only had to pay for the original DVD once. I guess that means I could rent out my own DVD collection! No wonder the rental business is so lucrative.

I want to add that there should be a clause in the license that one backup DVD should be allowed for the reason that disks are so delicate & prone to scratching! Example: if I purchase MS Office 2008 for $400 and accidentally scratch the install disk, am I expected to pay another $400 for another copy.

Additionally, I presume that Apple is able to utilize its existing staff, server farms, bandwidth and advertising budget used already for Music & Movie Purchases, for movie rentals as well.

It would be fascinating to learn what format movies are provided to Apple from the studios, and precisely Apple's actual budgetary increase for rentals (other than initial startup).

For the official record, I only copy & rip DVDs for personal use, and my Apple TV & iPhone!
Click to view Chris Breen's profile Macworld Editorial 2,943 posts since
Dec 11, 2000
6. Feb 11, 2008 2:07 PM in response to: chase
Re: Exploring iTunes movie rentals
I'm not sure why you'd assume that the addition of rentals wouldn't add to Apple costs in regard to bandwidth and servers. More stuff and more stuff to deliver doesn't come without cost.

As for the official record: Ripping DVDs that you've rented, even for personal use, is S-T-E-A-L-I-N-G. If it weren't, why not just bring your laptop into the video store, throw five bucks at the clerk, and say, "Don't mind me, I'm just going to rip these right here. It'll save me a trip returning them?"

Archiving a backup copy that you OWN, is an entirely different matter. For that you could legitimately invoke Fair Use.
Click to view chase's profile New Member 24 posts since
Sep 4, 2004
7. Feb 11, 2008 2:14 PM in response to: Chris Breen
Re: Exploring iTunes movie rentals
nice analogy, Chris, I understand. thanks for clarification of Fair Use.
RE: added costs for rentals: my thinking was people are either going to rent OR purchase, but not both. cost increase would be negligible. perhaps i'm completely wrong.
Click to view Chris Breen's profile Macworld Editorial 2,943 posts since
Dec 11, 2000
8. Feb 11, 2008 2:20 PM in response to: chase
Re: Exploring iTunes movie rentals
The thing is that with rentals there's a lot more content there. You can rent over 600 titles from the iTunes Store. Currently, the majority of those titles are not also for sale. So, Apple's storing more stuff. And because rentals are cheaper than purchased movies plus people tend to favor renting versus owning, far more video content is traveling through Apple's pipes.