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Blockbuster 'mystery partner' in studios' cable deal?

So, Blockbuster is talking with Viacom about the media company’s plan to roll out a new premium cable movie channel.  The allure is digital. 

Big-blue-and-yellow would like to have the exclusive digital rights to programming on the channel, following Netflix’s lead (doesn’t Blockbuster always?) making exclusive deals for DVD movie distribution.

In this case, Blockbuster is looking a few years ahead, buying into the idea that most media consumption is going digital, i.e. downloading.  And if BB has the digital rights for streaming and downloading, it will have a competitive advantage.

Maybe. 

Blockbuster seems eager to spend money.  A few weeks ago, it was an audacious bid to buy limping Circuit City; now it’s offering to put money into a deal that is ‘iffy’ at best. 

It won’t happen unless the cable companies pay for it and then re-sell it to their subscribers.  It’s worth asking whether, if the world is going digital, and folks are getting savvy about streaming and downloading, will people be willing to pay for what they can get free, either legally or not? (Horton Hears a Who just showed up on Bittorrent sites.)

Blockbuster probably will find a warm reception from the Viacom people.  After all, the idea of another pay channel has limited appeal to at least some cable operators.  And one analyst, Rich Greenfield at Pali Research things Blockbuster is one of the last companies which should be interested in this deal.

No Wal-Mart video downloads for iPods

Wal-Mart's announcement it will offer downloads of "Superman Returns" over the Internet applies only to Windows users.  PCs and portable devices using Windows Media Player will be able to play the copy protected programming, but the retailer explained in an FAQ on the Wal-Mart Web site, "These videos are not compatible with Apple (AAPL) iPods,"

Now, this being the holiday season let's be positive about the retailer's move - even though it does seem dumb to ignore millions of video iPod owners, but that's more likely a Time Warner/rights management (TWX) call.

The bright idea in Wal-Mart's move is tiered pricing.  After you buy the DVD at list-minus-the discount, the price to download the movie file to your PC or "Plays for Sure" device and or Zune player is less than full retail.  Some have been arguing that Hollywood would want full price for each use, but that's not the case here.  An extra $3.97 gets files for both your portable players and the PC, less if you want to watch the movie on just your player or laptop/PC. 

This is reasonable, and even good.  Perhaps the RIAA could take notes, and offer an add-on download option to the price of a CD. Lord knows, sales have been weak.  This might help - especially for gift purchases. After all, a commercially packaged CD, with cover art and liner notes, is much more attractive than a label-less CD you burn with downloaded tracks.

Lions Gate a no-show in iTunes movies

So, whatever happened to Lions Gate (LGF)?  The company whose executives "leaked" weeks ago that it had a distribution deal to be part of iTunes' movie sales was not on the meager list of suppliers announced this week by Apple (AAPL). 

What happened?

Lions Gate and other independents should be racing to Cupertino to get slotted. After all, Netflix (NFLX) will tell you most of their business is in "long tail" titles, and the makers of those films should be eager for, and fast to act, to take advantage of additional distribution.  Frankly, I'm a little surprised the indies aren't already in Amazon's (AMZN) Unbox service. 

Do you think the majors muscled them out of the kickoff announcements?  Demanding preferential treatment, promotion, and shelf space?

Starting small was Steve Jobs' strategy with iTunes Music.  He began with a few music labels, including independents. Regular news releases touted how many tracks were being sold helped fuel chatter. As the business built the majors came along.

Can the big studios still possibly think their way is the only way. Movielink, the movie download service they've backed, and LGF-co-owned Cinema Now have not done well, says Rob Pegoraro in the Washington Post. "Might as well have tumbleweeds blowing through their aisles. They offer laughably small selections at prices offering little or no savings over the DVD and under insultingly limited conditions," he wrote.

Apple will pursue the same "wait'em out strategy" with the big studios.

But WHERE are the little guys today?

Disclaimer: I own shares in Netflix and Apple.

Lions gate a no-show in iTunes movies

Why aren't movies from Lions Gate Entertainment (LGF) in the iTunes movie store?

The company whose executives "leaked" weeks ago that it had a distribution deal to be included in the iTunes movie sales venture was not on the meager list of suppliers announced this week by Apple.

Will Lions Gate be added the next few weeks? As Apple tries to put pressure on the major studios to sign on, too.  Starting small, issuing news releases about ever-increasing sales, until they all come in?  The same as Apple did with music.

Netflix (NFLX) will tell you the bulk of its business is the kind of indie-produced "long tail" product.  Indies need all the distribution they can get.

Lions Gate and other small movie makers should be beating down the door at Apple (AAPL). But for some reason, indies are not part of Amazon's Unbox (AMZN) lineup, either.  Maybe the majors don't want to be on the same shelf with the small guys, and that's one of their terms for participating?  Is it possible Apple's continuing negotiations with the majors, and the small studios are getting squeezed out?

Disclaimer: I own shares of Netflix and Apple.

Lions Gate no-show in Tunes movies

So, whatever happened to Lions Gate (LGF)?  The company whose executives "leaked" weeks ago that it had a distribution deal to be part of iTunes' movie sales was not on the meager list of suppliers announced this week by Apple (AAPL). 

What happened?

Lions Gate and other independents should be racing to Cupertino to get slotted. After all, Netflix (NFLX) will tell you most of their business is in "long tail" titles, and the makers of those films should be eager for, and fast to act, to take advantage of additional distribution.  Frankly, I'm a little surprised the indies aren't already in Amazon's (AMZN) Unbox service. 

Do you think the majors muscled them out of the kickoff announcements?  Demanding preferential treatment, promotion, and shelf space?

Starting small was Steve Jobs' strategy with iTunes Music.  He began with a few music labels, including independents. Regular news releases touted how many tracks were being sold helped fuel chatter. As the business built the majors came along.

Can the big studios still possibly think their way is the only way. Movielink, the movie download service they've backed, and LGF-co-owned Cinema Now have not done well, says Rob Pegoraro in the Washington Post. "Might as well have tumbleweeds blowing through their aisles. They offer laughably small selections at prices offering little or no savings over the DVD and under insultingly limited conditions," he wrote.

Apple will pursue the same "wait'em out strategy" with the big studios.

But WHERE are the little guys today?

Disclaimer: I own shares of Apple Computer and Netflix.