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February 08, 2007

Amazon Enters "Download-To-TV" Market

By Raju Shanbhag, TMCnet Contributing Editor

Downloading the latest movies and music to your computer is a thing of past in the ever changing world of Internet. Now, it’s time to download movies directly to your TV from the Internet. In fact, even this concept is not very new. Various companies have been allowing movie and music downloads for the subscribers for a fee. Recently, Wal-Mart announced its entry into the download to TV business. Now, Amazon and TiVo have teamed up to provide another option to movie-crazed broadband subscribers. This new service is called Amazon Unbox on TiVo and customers can purchase or rent movies directly from their TiVo units using the service. This service is currently being beta tested by TiVo and it will soon be available to all 1.5 million broadband-ready TiVo subscribers.



 
Amazon’s new service will offer TV shows and movies from prestigious production houses like CBS, Fox Entertainment Group, Lionsgate, Paramount Pictures, Universal Studios and Warner Bros.
 
The owners of Series2 or Series3 TiVo boxes can establish a connection to Unbox through Amazon Unbox on TiVo. It will allow them to view eligible movies and TV shows directly from the TiVo. The company has not confirmed the content that will be available for the TiVo users to watch. It’s currently following Apple’s TV and movie pricing from the iTunes Store and TV episodes will cost $1.99. Movies are priced between $9.99 and $14.99. Apart from this, movies can also be rented for $1.99 apiece
 
Industry experts opine that Amazon will gain a lot from this deal. Earlier, Unbox service failed to take off because of its poor software and functionality on the PC. So, Amazon now plans to cut off its less impressive part (PC downloads) and link the remaining business with direct TV downloads. By doing this, Amazon is aiming at becoming a greater player in the market. Amazon will face stiff competition in this field from Apple and Microsoft (News - Alert). Microsoft has already launched Xbox Live Video in November 2006, which allows the users to buy TV shows and rent movies directly on the TV using their game consoles. Until now, Xbox Live enjoyed uncontested leadership in the download-to-TV market and left its competitors far behind.
 
The market will experience a surge later this month as Apple TV will make its debut along with Microsoft and Amazon/TiVo. But Apple TV lacks certain features making it less exciting to users than the other two services. To start with, in Apple TV, users must first download movies to a computer in the house and then stream them to the Apple TV. They cannot purchase the movies directly as in case of Unbox on TiVo. Also, Apple still does not offer movie rentals on iTunes only movie purchases. Unless Apple upgrades its features and offers direct to Apple downloads, it will start with serious handicaps before it even enters the market.
 
With so many new players entering the download to TV market, the service and the quality of products are expected to go up. Customers can now expect a greater variety and a bouquet of products to choose from.
 
 
 
Don’t forget to check out TMCnet’s Whitepaper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers whitepapers, case studies and other documents which are free to registered users.
 
Today’s Featured Whitepaper is titled 3G Mobile Network Security brought to you by Juniper Networks (News - Alert).
 
 







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