Luis - Citations for Business and Economic Analyst

Extended citations for the economic perspective.

Apple Goes to the Movies by Dan Frakes

“One of the obstacles to using movie-download services has always been bandwidth. You can download a 4-minute music track in less than a minute or a 22-minute TV show in several minutes even on a standard DSL or cable connection, but at 2-hour movie is a different game altogether. Jobs (Apple CEO) suggested that users with 5-Mbps connections could download a movie from the iTunes Store in about 30 minutes. In our first attempt to grab a movie using the Macworld office’s 10-Mps connection-admittedly, at a very busy time just a Pew hours after the movie section of of the Itunes Store opened—it took 1 hour and 10 minutes to download Pirates of the Caribbean: The Curse of the Black Pearl—a film that runs 2 hours and 22 minutes long and has a 1.64 GB file size.”
(Found on Article “Apple Goes to the Movies,” written by Dan Frakes on Macworld, Nov. 2006, Vol. 23 Issue 11, p 14-15, 2p)

Apple Goes to the Movies by Dan Frakes

“Expanding Your Options—Watching movies on your Mac or IPOD is great, but most people prefer viewing video on their TVs bigger screen. Jobs took advantage of Apple’s Movie introduction to show off an upcoming product-a rare sneak peek for the company—code-named the iTV. Although it won’t be available until the first quarter of 2007, Jobs showed the $299 device (which looks very much like a half-height Mac mini), which will let you stream video, audio, and photos from your Mac to a television over an 802.11 wireless connection. But instead of making “listen blind” as you have to do with an AirPort Express, the iTV provides a Front Row-like interface on your TV screen that you navigate using the now-ubiquitous Apple Remote.
The iTV will offer a number of ways to connect it to your home entertainment system: an HDMI (High-Definition Multimedia Interface) connection for video and digital audio; component video; optical digital audio; and analog RCA-type audio. It will also have an Ethernet port (which will presumably let you hardwire I to your network) and a USB 2.0 port (maybe for connecting your IPOD).

(Found on Article “Apple Goes to the Movies,” written by Dan Frakes on Macworld, Nov. 2006, Vol. 23 Issue 11, p 14-15, 2p)

Wal-Mart Enters the Movie Download Wars by Gogoi Pallavi

“When it comes to prices, it’s hard to top Wal-Mart (WMT), even though low prices haven’t helped the world’s largest retailer conquer media sales. Apple’s (AAPL) iTunes store is the leader in music downloads despite charging 11 cents more per song, and in video rentals Wal-Mart conceded defeat to Netflix (NFLX) two years ago. Announcing its entry Feb. 6 into the nascent movie download business, Wal-Mart came out charging not only with the lowest price, but also a potent arsenal of backing from all of Hollywood’s big studios. The company’s beta download site has 3,000 titles, with most new releases costing between $14.88 and $19.88. All the majors have signed on to the venture, lured by Wal-Mart’s market reach and its marketing muscle. Among them: 20th Century Fox, Disney, Lions Gate, MGM, MTV Networks, Paramount Pictures, Sony Pictures Entertainment, Universal Studios Home Entertainment, and Warner Bros… Apple is backed by two studios, Disney (DIS) and Viacom’s (VIA) Paramount Pictures, and will face challenges from Wal-Mart’s deeper roster. Morever, Wal-Mart which holds a 40% share in the face lucrative DVD market—has negotiating muscle with studios that hardly anyone can match. “We are starting with 3,000 titles right now and more will come on a daily and weekly basis, which is more than you can find anywhere on the Web,” says Kevin Swint, divisional merchandise manager for digital media at WalMart.com. Wal Mart’s prices start at $7.50 for older movie titles, compares with $9.99 at iTunes. Most of Wal-Mart’s newer films will be available for $14.88, with a few titles $5 more. TV episodes are available for $1.96, 4 cents cheaper than at iTunes. Downloads are available from the likes of Apple, Amazon.com, MovieFlix, and CinemaNow. Download speed has been a critical bottleneck for many people to adopt the model, but that issue has begun to fade amid greater broadband penetration, newer PCs, and quicker download schemes…
However, Wal-Mart could find an edge in the movie battle, because of its wider selection. Even though Wal-Mart might find it difficult to convert its traditional customers, the appeal of movie offers the company a much broader customer base.
James L. McQuivey, vice-president of media and marketing at Forrester Research (FORR), points out that iTunes music succeeded because it was tied to the iPod’s vast popularity. However, McQuivey believes users can download movies or TV shows into any PC and transfer that into cell phones or a portable DVD. “In fact, there are fewer Apple Macs around than PCs, so the barriers for Wal-Mart’s downloadable shows are lower,” says McQuivey.”
(Wal Mart Enters the Movie Download Wars., By: Gogoi, Pallavi, Business Week Online, 2/7/2007, Business Source Complete)

From Apple iTunes Website: Development of iTV

Your computer is the center of your digital life. Your TV is the center of your entertainment life. But what if you want to watch movies, TV shows, movie trailers, podcasts, and photos from your computer on your TV? At $299, Apple TV brings iTunes to the big screen.
The revolution will be televised.
Say you’ve just downloaded Cars from iTunes. Instead of huddling around your computer to watch, you pop some popcorn while your computer wirelessly syncs your new flick to Apple TV. Then you pull up a seat, put up your feet, and pick up the included Apple Remote to play your movie on TV. Give yourself a hand: You’ve just changed the way you watch digital media.
iTunes to Apple TV, wire free
Apple TV connects to your TV via an HDMI port or component video and audio ports. Its built in, superfast 802.11 wireless capability syncs your iTunes library from any Mac or PC in the house. Best of all, what’s on Apple TV stays in sync: Anytime you change your library in iTunes, it changes on Apple TV.

(http://www.apple.com/appletv/)