Comcast proposes video on demand with a DVD follow-up

11 Oct 05 05:16 by Crabbyappleton in category Uncategorized To news archive

Would you pay your cable provider 17 dollars to watch a movie in your home in a pay per view form? What if it was not released on normal PPV yet and wont be for over a month? Still not convinced? What if after you watched it, as part of the deal, you received the DVD a few days later in the mail for your permanent collection? Yeah, not bad. This is the proposal from Comcast cable provider that is being pitched to the studios right now. They want a piece of the DVD rental pie and they just might have something to offer. The PPV paradigm is already a half billion dollar a year operation for Comcast, but with this new twist, they are hoping to turn it into a killer application.

The only snafu in the entire idea is the fact that only 40% of Comcast cable subscribers have the required digital box at this point in time. But still, that is 40% of 21 million customers which is not too bad.  DirecTV and Dish, are you listening?

Sensing that the financially troubled Blockbuster is ripe for plucking, Comcast is sounding out the Hollywood studios on the following proposition: A Comcast customer with a digital box will see a menu listing for, say, The 40-Year-Old Virgin as much as six weeks in advance of its scheduled appearance on pay-per-view.

For a fee of about $17, the subscriber could call up the movie for one immediate video-on-demand showing. Two days later, the DVD of Virgin shows up in the mailbox for the subscriber’s permanent collection.

Universal Studios Home Entertainment hasn’t announced an exact DVD release date for Virgin, but it’ll probably hit Blockbuster within four months of its Aug. 19 theatrical premiere.

If the Virgin DVD gets to the stores in mid-December, Comcast’s PPV run would most likely begin in late-January/early February. Russ Crupnick, media analyst with the NPD Group, a marketing/research company, dubs this strategy “instant rental with ownership.”

Look out Blockbuster! If the cable companies can cut deals for providing movies in this instant fashion, with a physical backup coming in the mail, it would be enough for me to hit the PPV button for the very first time. How about you?

Source: Video Business

8 Comments

sorti
Posts: 281
Posted on: 11 Oct 05 05:21
This is perfect, the same thing Apple should do with itunes pay for it now; then later get it in a nice uncompressed format. you get the movie when you want it and but also get to 'own' it too PERFECT!
Crabbyappleton
Posts: 5757
Posted on: 11 Oct 05 05:26
This is so smart it is freaking scary!
freonchill
Posts: 73
Posted on: 11 Oct 05 05:44
i wonder if you returned the dvd w/out opening it (ie: if the movie SUCKED) and get your $17.99 back
jab1981
Posts: 187
Posted on: 11 Oct 05 07:56
It is an interesting idea. I don't think returning the unopened movie should be worth getting back your $17.99. After all, you watched the movie immediately on a PPV like system. I'm not sure what those cost these days, but let's say ordinarily watching a movie on PPV is $4... watching it six weeks in advance should raise the price a bit (think new release). So let's say $7 just to be kind. I think a better option would be that after you watched the PPV version, they would offer you the DVD for say $10 more. If you didn't want the DVD because the movie sucked... they could still get the $7 and you would avoid the expense of the DVD you didn't want. What I am curious about though, is what condition the DVD is in. It sounds like a grand idea... except that what if the DVD is a blank generic DVD. They don't specifiy that you'll be getting the same commercial copy you'd receive at a physical store. What if it's a plain jane version of the DVD that's been made specially for comcast. Perhaps in a paper sleeve without any extras. Even worse... what if it's full frame!
jef195
Posts: 445
Posted on: 11 Oct 05 14:18
"This is so smart it is freaking scary!" Actually not! Does anybody see the most obvious flaw in this supposedly "Greedy"Genius plan-it would be easier just to go to Wal-Mart or better yet Order from Amazon or such and get it cheaper ,sooner and cut out the Greedy middleman
jef195
Posts: 445
Posted on: 11 Oct 05 14:21
....Or if they really know how to do it just Use Various methods provided by the High Speed internet And P2P, BT or Newsgroups IRC.
Crabbyappleton
Posts: 5757
Posted on: 11 Oct 05 15:18
Ummm.... there is no wait, that's the thing and you get the film before than it can hit the shelves. Plus, you don't have to leave the house. I think it is smart as it makes PPV a better value plus, you don't need to wait. Impulse buy is a powerful thing. If I have a choice between digital cable quality in seconds or Internet quality in ??? Then I have to burn it to DVD if this is allowed then carry it over to my player......I'll take digital cable every time. Also, the price for the releases is a bit cheaper than what I see in the paper i.e. it is usually 19.99 for a new release. "it would be easier just to go to Wal-Mart or better yet Order from Amazon or such and get it cheaper ,sooner and cut out the Greedy middleman" Walmart and Amazon are middlemen too!
[edited by Crabbyappleton on 11.10.2005 15:55]
dentman42
Posts: 648
Posted on: 11 Oct 05 20:52
I frequently see new releases on sale the week of release for < US $ 15 at Best Buy/Circuit City, etc. Not sure if it was the article or CDFreaks comments, but it was implied that the PPV still wouldn't be until a month or two after the DVD hit stores. For this to be a reasonable option, it should be available at least as soon as the DVD was release, if not before. I think the $17 price is still a bit steep. PPV is generally about $4 last I saw, with some even cheaper. Also, would you have the choice of WS or PS, or would you just get the crappy PS format that you'd get on PPV? The idea definitely has some possibility, but it still needs work.

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