Amazon Tivo Combo

Monday, February 12, 2007 | 06:30 PM

Amzn_tivo_remote2_v45212749_

I've been meaning to address this, since it touches upon 3 of my favorite toys/web properties: Netflix, TiVo, and Amazon. This represents a significant convergence play.

From Variety:

"Hollywood is once again abuzz with thoughts of a transformed business as Wal-Mart, the world's biggest retailer, has entered the movie download biz, while Amazon.com is partnering with TiVo in a bid to expand its presence.

In a nutshell, as one mogul recently put it, "Nobody is making any money at all on this yet." Of course, movie downloading isn't the only business that got ahead of itself during the first dot-com boom. And studios have plenty of reason to be optimistic this time around. The Internet is finally transforming the way all people, but especially teens and twentysomethings, find and consume media, as evidenced by the meteoric growth of companies like Google, MySpace and YouTube.

And Apple's iTunes is now the main growth driver of the music biz along with a host of smaller competitors. But despite nearly eight years of trying, the online movie biz still hasn't overcome many of the problems that have long plagued and that iTunes overcame in music.

Online prices, for instance, are still on par and in some cases higher than those for DVDs, even though studios and e-tailers save the cost of manufacturing and shipping. A key differentiator for iTunes was its price points, 99¢ for singles and $9.99 for albums -- representing a significant discount vs. CDs."

I found the list of top downloads interesting:  24, Little Miss Sunshine, An Inconvenient Truth, and Studio 60 on the Sunset Strip were the top downloads of this service.

I am not sure if this combination threatens Netflix's model. In theory, and additional convergence should be a danger to the internet/snail mail business model.


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Be sure to see the #6 of our disclosures regarding these faster than realtime download and play patents . . .

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Sources:
TiVo and Amazon.com Announce New Service
Enabling Amazon Unbox Video Downloads to TiVo

02/06/2007
http://www.tivo.com/cms_static/press_136.html

Download the latest movies and TV shows straight to your TiVo
http://www.tivo.com/4.9.24.asp

Download business stays elusive
Online movies remain a tough sell

BEN FRITZ
Variety, Posted: Wed., Feb. 7, 2007, 5:36pm PT
http://www.variety.com/article/VR1117958901.html?categoryid=1009&cs=1

Monday, February 12, 2007 | 06:30 PM | Permalink | Comments (13) | TrackBack (0)
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Comments

How much different is this move by Tivo and Amazon from Pay Per View?

Sure you have more flexibility with downloading, but are the technology development and licensing costs really worth this flexibility?

I really doubt this move by Tivo and Amazon will hinder the Netflix model. All households (over 100 million) have mailboxes... only about 1.5 million own the Tivo DVR.

Although, I personally prefer the Blockbuster model that allows subscribers to return the mailed DVD to any store for another one at the store.

Posted by: Sam Park | Feb 12, 2007 7:46:29 PM

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