• Internet to surpass DVD in movie consumption, not revenue

    Consumers will watch more movies online than on DVDs in 2012 for the first time, but will spend far less doing so, according to a new report.

    The number of movies rented or bought online from outlets like Netflix and iTunes will grow 135% this year to 3.4 billion, according to IHS Screen Digest.
    But the research firm said people will spend only $1.72 billion on digital movies, compared to $11.1 billion on DVDs and Blu-ray discs.
    In total, online stores and services will account for 57% of movie consumption in 2012, but only 12% of spending.

    "The result would be a net decline in home entertainment revenue even as consumption reaches previously unattainable heights," IHS analyst Dan Cryan wrote in the report.
    The reason: The array of low-cost options to consume movies online, particularly "all you can eat" subscription services like Netflix, which streamed more than 2 billion hours of video during the fourth quarter of 2011.
    IHS said that Netflix and smaller competitors like Amazon.com and Hulu accounted for 94% of online movie consumption in 2011. Digital purchases accounted for only 1.3%.

    Studios have responded to the trend by trying to keep more movies away from Netflix and other cheap rental services while also making it more attractive to buy films online. Most allow only older titles released at least a decade ago to be available for subscription streaming.
    At the same time, Hollywood is aggressively pushing the new UltraViolet format, which enables consumers who purchase films to store a copy in a virtual "cloud" that they can access from a wide array of digital devices.

    Giving the technology a significant boost, retail giant Wal-Mart recently agreed to back UltraViolet and to allow consumers to copy DVDs they already own to the cloud for as little as $2 each.
    Comments 16 Comments
    1. megabyteme's Avatar
      megabyteme -
      Hollywood just doesn't get it. Services like Netflix are the way to combat/nearly end "piracy". I recently subscribed to both Amazon and Netflix as a matter of convenience to play movies for my kids. As a result, I have all but stopped downloading.

      If Netflix can be profitable for $8 per month, for $15 people could watch all but the newest, in theaters movies.

      And who the F@CK wants to pay $2 for movies they ALREADY OWN?
    1. duke0102's Avatar
      duke0102 -
      +1 there m8.
      I don't know if they mean uploading the whole 4gig DVD but that'd take me a long time to do with mine and most others internet speeds so it's a bit of a retarded idea.
    1. megabyteme's Avatar
      megabyteme -
      Even if there was no actual upload required, I've got a moderate collection of paid-for DVDs (~150). With even the most efficient model available of merely placing a legit DVD in the drive to verify original ownership, that would be a serious pain in the ass compared to subscribing to a service like Netflix which already has all of the movies I own available. AND, I wouldn't have to shell out an additional $300 for "convenience" of their service.
    1. duke0102's Avatar
      duke0102 -
      I'm seriously looking at Netflix and you seem to think quite highly of it. Does it have HD content? I couldn't see much described on that side on there site.
    1. megabyteme's Avatar
      megabyteme -
      It has been great for our 2 year old twins in the couple of weeks we've had it. Looking at the content overall, it appears that the streaming service (they recently split-off their DVD offerings, now charge an extra $8 for that) has a lot (and really a lot compared to any cable subscription channel package of years past) of non-blockbuster and somewhat older movies.

      As for a handy way to scroll around on-screen and pick something (their "personalized" suggestions seem pretty good) quick to watch without the comparative "hassle" of downloading, or reruns of cable, I think it is great. Paired with the immense libraries and current films available via filesharing, it is a great value at $8 per month.

      I'm not a big HD aficionado, so I haven't been paying attention to the resolutions that have streamed on most of the shows. It certainly isn't low-quality by any means. There is a series of dots that extend further to the right to show how close to HD the streaming quality is. I think that 1080p resolution would fall more into the additional fee category, though.

      The first month is free, so there is no reason to not try it. I do believe services like this will continue to dominate, if not take over completely. I got tired of cable a couple years ago, and have been downloading everything (literally) I have been watching since that time (news either irritates or depresses me, so I tend to read online more than watch). As a matter of fact, I recently realized that my coax was not even attached to my television for a period of over 6 months. Netflix (and Amazon Prime- not nearly as evolved yet) have made my mindless entertainment searches much easier.
    1. duke0102's Avatar
      duke0102 -
      I think I'll give it a go, thank you for the advice.
    1. usr's Avatar
      usr -
      Try a good private tracker. One of the better ones ( Torrents: 110,099 Movies: 57,887 ). I would imagine they have 145 of your 150 DVDs ready for download all the work done for you.
    1. duke0102's Avatar
      duke0102 -
      Wow, you missed the point there. The article is about using a cloud service to digitally host a movie so it can be accessed wherever on multiple device types. Downloading a movie from a torrent won't let me stream it on my phone on the go as an example.
    1. megabyteme's Avatar
      megabyteme -
      Quote Originally Posted by duke0102 View Post
      I think I'll give it a go, thank you for the advice.
      You are very welcome, duke. Hope you enjoy the service as much as my family has.
    1. bobbintb's Avatar
      bobbintb -
      ultraviolet bleck. i doubt it will take off and hope it doesnt. i would certainly not pay $2 to put my movie on the cloud when i can do it myself and do a better job of it, and thats if i even wanted it there in the first place.
    1. Hole69's Avatar
      Hole69 -
      Fuck Netflix. Its easier to download what I want ready to go and if any device can't play x264 HP @ 4.1 in .mkv/.mp4 its a piece of shit not worth owning. No DRM, no problems. You can't stop piracy, you can't slow it down, you can only feebly exist alongside it.
    1. megabyteme's Avatar
      megabyteme -
      Quote Originally Posted by Hole69 View Post
      Fuck Netflix. Its easier to download what I want ready to go and if any device can't play x264 HP @ 4.1 in .mkv/.mp4 its a piece of shit not worth owning. No DRM, no problems. You can't stop piracy, you can't slow it down, you can only feebly exist alongside it.
      I have to disagree with you on that. While "free" will always have its enticements, convenience coupled with low-cost will hold its own. As I have enjoyed Netflix recently, it has been for exactly those reasons. My set-top box only requires me to click on a single icon, there I can search and stream (no waiting) whatever shows strike my interest. No free "pirated" service offers such instant, on-demand offerings. And since servers are required for instant streaming, a "pirated" operation would have to incur those costs of operation. netflix is able to offer enough choices, instantly for a cost I am willing to pay. Advanced versions of this are likely to improve. Not "feeble" by any means.

      Will I stop downloading the latest movies as they are available? No. Am I willing to support a service that is offering me greater convenience- with less searching for what programing choices I want? Yes. Millions of consumers agree. Millions more will join in if the services will meet their needs at a price they find reasonable for the service.
    1. Hole69's Avatar
      Hole69 -
      Quote Originally Posted by megabyteme View Post
      Quote Originally Posted by Hole69 View Post
      Fuck Netflix. Its easier to download what I want ready to go and if any device can't play x264 HP @ 4.1 in .mkv/.mp4 its a piece of shit not worth owning. No DRM, no problems. You can't stop piracy, you can't slow it down, you can only feebly exist alongside it.
      I have to disagree with you on that. While "free" will always have its enticements, convenience coupled with low-cost will hold its own. As I have enjoyed Netflix recently, it has been for exactly those reasons. My set-top box only requires me to click on a single icon, there I can search and stream (no waiting) whatever shows strike my interest. No free "pirated" service offers such instant, on-demand offerings. And since servers are required for instant streaming, a "pirated" operation would have to incur those costs of operation. netflix is able to offer enough choices, instantly for a cost I am willing to pay. Advanced versions of this are likely to improve. Not "feeble" by any means.

      Will I stop downloading the latest movies as they are available? No. Am I willing to support a service that is offering me greater convenience- with less searching for what programing choices I want? Yes. Millions of consumers agree. Millions more will join in if the services will meet their needs at a price they find reasonable for the service.
      Get your lazy ass to binsearch or nzbmatrix and type it in. 5min later you have the film you want in the quality you want and you can watch it over and over unless its some kinky underground porno shit. That is convenience, and you are not tied to one provider who can change what they want on a whim.
    1. Rskan's Avatar
      Rskan -
      Quote Originally Posted by Hole69 View Post
      Quote Originally Posted by megabyteme View Post

      I have to disagree with you on that. While "free" will always have its enticements, convenience coupled with low-cost will hold its own. As I have enjoyed Netflix recently, it has been for exactly those reasons. My set-top box only requires me to click on a single icon, there I can search and stream (no waiting) whatever shows strike my interest. No free "pirated" service offers such instant, on-demand offerings. And since servers are required for instant streaming, a "pirated" operation would have to incur those costs of operation. netflix is able to offer enough choices, instantly for a cost I am willing to pay. Advanced versions of this are likely to improve. Not "feeble" by any means.

      Will I stop downloading the latest movies as they are available? No. Am I willing to support a service that is offering me greater convenience- with less searching for what programing choices I want? Yes. Millions of consumers agree. Millions more will join in if the services will meet their needs at a price they find reasonable for the service.
      Get your lazy ass to binsearch or nzbmatrix and type it in. 5min later you have the film you want in the quality you want and you can watch it over and over unless its some kinky underground porno shit. That is convenience, and you are not tied to one provider who can change what they want on a whim.
      I don't think I quite understand exactly what your objection is to other people spending their own money on a service they find to be worth whatever they're paying. What I like about netflix is the convenience, as megabyteme said. It works with tech I already have, meaning my xbox and wii, so I have it hooked up to a tv at home and in college, no messing around trying to get a media hub or anything set up and a buttload of stuff at my fingertips that I enjoy watching but would never be bothered to actually download. If I don't know what I want to watch, I can just pick something at random that it may never have even occurred to me to watch and if I don't like I just B button out of it, no harm, no foul, no fuss. And stupid as it may be, I also like the idea that I may actually be contributing money towards come of the people whose content I enjoy, so that they may produce more in the future, however miniscule that contribution may be.

      I mean, I'm not going to ditch bittorrent or usenet, for various reasons, not least of which would be, as pointed out, the latest movies and tv shows and that, but I'm more than happy enough to use netflix alongside them. And if netflix changes their setup in the morning and I'm no longer happy with it? I stop paying for it, much as I would if my usenet provider displeased me. And 7 a month (not sure how much it is abroad) is hardly breaking the bank.
    1. johhny's Avatar
      johhny -
      i had a netflix subscription if you want to play HD movies you need at least 100mb home connection ...and even if you let the movie to load it won't load more than 5 minutes
    1. duke0102's Avatar
      duke0102 -
      Quote Originally Posted by Hole69 View Post
      Fuck Netflix. Its easier to download what I want ready to go and if any device can't play x264 HP @ 4.1 in .mkv/.mp4 its a piece of shit not worth owning. No DRM, no problems. You can't stop piracy, you can't slow it down, you can only feebly exist alongside it.
      Quite an ignorant comment to bring to this discussion. The article is about comparing services available and coming up, not some governments idea to stop piracy.
      I have an 8meg connection so this service allows me to watch HD content by streaming instead of waiting ages to download. Your arrangement is good for you but not everyone so start seeing the big picture buddy.