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You are here: MacNN Forums > News > Tech News > WSJ: Amazon considers working with UltraViolet digital movie locker

WSJ: Amazon considers working with UltraViolet digital movie locker
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Oct 10, 2014, 12:26 PM
 
UltraViolet, the online digital locker which provides downloadable copies of movies sold on DVD and Blu-ray, may get some extra support in the future. The Wall Street Journal claims the existing roster of companies offering UltraViolet services could soon be joined by Amazon, as it attempts to fight off competition from Apple's iTunes Store and other services.

At least three studios are apparently in talks with the retailer, with Warner Bros., Sony Pictures Entertainment, and Universal Pictures allegedly taking part in the discussions. To the studios, bringing Amazon onboard to UltraViolet could help increase the slow usage of the system, as well as potentially increasing the digital movie sales market from its current level of sales, estimated at over $2 billion.

The addition of Amazon to the group of companies could also provide another benefit: lowering the control of Apple over the digital movies market. Figures from the report place Apple as controlling approximately 58 percent of the market in 2013, with Amazon as the nearest competitor with a 15-percent share of sales and rentals. Amazon's adoption of the format could boost its figures significantly, possibly knocking Apple down to below a 50-percent share, and in theory leveling the playing field for all involved.

Amazon may also help organically increase the usage of the service in alternative ways. While there are currently 20 million registered accounts for UltraViolet, each account holds an average of just five movies, possibly caused through requiring users to not only sign up for an account in the first place, but to also enter in a code supplied with the movie disc. Using its experience with Autorip and its own collection of accounts, Amazon could easily offer to link customer accounts to the UltraViolet service, and automatically add bought movies to their UltraViolet collection.

According to the report, discussions have been underway for several months, with technology-related issues being a sticking point. Amazon is also apparently wanting more studios to be involved in the talks before it joins UltraViolet.
     
pairof9s
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Oct 10, 2014, 12:48 PM
 
Oh, but let's not allow the consumer's preferred choice be our concern here...we need to force them to use a method that helps us maximize our profits. Good business, I guess...can't fault them. But then don't fault the consumer for ripping even more DVD/Blu-Ray movies.
     
OldMacGeek
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Oct 10, 2014, 01:30 PM
 
As a longtime member of both Vudu and UltraViolet, I'm glad this is happening. Many of my purchases are not physical media, but electronic copies through their service. The thought of them going belly-up and taking my collection with them was always in the back of my mind.
     
gprovida
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Oct 10, 2014, 01:58 PM
 
Sounds like monopoly collusion by Amazon, quick get the Justice Dept involved.
     
gprovida
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Oct 10, 2014, 02:08 PM
 
on a more serious note, Amazon has tried to buy or break into a lot of markets to establish such market leverage. Monopoly, that I can dictate prices. Books, Audio books, DVDs, music, and recently magazines have been targeted. Sometimes with help by vendors sometimes against their wishes, interests.

Their forey into tablets has been very mixed. After an initial iPad Killer frenzy by the press it tablets are niche players and its phone is a dead loss. It's attempts and there have been many, into direct iTunes competition has been largely unsuccessful and basically eat up non-Apple vendor share.

The arrogance of the movie and TV industry lets them think they can control or manage Amazon vs Apple and squeeze more money from customers, aka ultraviolet, but Amazon cares little to nothing for the arts and as soon as possible tries to drive proces down to essentially media costs to ensure its monopoly position and address its core value proposition to customer, cheap!

We will see how this works out and perhaps get better appreciation of Apple's hires and acquisitions related to media, content, fashion, and retail.
     
   
 
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