Amazon launches DVD and stream bundle – how long before the DVD gets dropped?

By December 10, 2009Content, IPTV

This is on NewTeeVee:

Amazon.com just launched a promotion dubbed Disc+ On Demand that may well be the start to the industry’s first major multi-platform retail experience. Customers who buy select movies on DVD or Blu-ray will be offered the chance to instantly watch their purchase through Amazon’s Video On Demand service.

One of the biggest downers to any ecommerce buying experience is waiting for the goods to turn up and with this move Amazon eliminates that problem and delivers instant gratification so it easy to see why this makes sense, and might even help maintain DVD pricing in the short term (they are describing the VOD part as a “gift with purchase”).

Looking forward, if this offering takes off the implication is that people will be watching their films over the internet before the physical copy turns up at their houses.  From there it is a small step to ditching the DVD and just taking the stream.

We are seeing in the music industry that having music available everywhere is more important than owning it and I expect we will see something similar in movies and then books.

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  • Can't login via Disqus – annoying. Anyway…

    I think that a big determinate on shift to streamed content is going to remain broadband links. I've shifted lots of my TV/video viewing to my laptop but problems remain and they are mostly around the last mile. Even with 8mb BT the viewing quality isn't great and badly effected by network load.

    Come the point of 20+ mb (or more likely 50+ mb) with a contention ratio of 20:1 rather than 50:1 or 100:1 we see today, then shift to streaming will take off.

  • Sorry about the Disqus problem Simon. I will look into it.

    You are right about the pre-requisites for video streaming going mainstream, but I expect that the winners and losers in this space will largely be determined before then serving early adopter customers and pockets of the population with great broadband.

  • I've noticed it on other sites that clicking “Disqus” login prior to sending the post supposedly logs in but doesn't seem to reflect anything. It is a general “Disqus” problem and not something specific to your site. Logs in fine after entering post & details and then hitting post as guest.

    Yes and I think Amazon is well positioned for this, perhaps more-so that Apple. Amazon has the infrastructure to delivery cheaply (something I'm not sure Apple can easily replicated with partnerships or otherwise) which is going to be a big bonus (and shows the non-revenue benefits of AWS to Amazon as well).

    I think it would be in the interests of Amazon, Google, Microsoft et al to look at directly funding the roll-out of 100mb+ broadband through an investment vehicle. All three have enough fiber of their own to provide the backbone – it is the last mile where it falls down & I wouldn't be surprised if they can deliver it at lower cost and faster than the incumbents or telcos generally.

  • Interesting. Google has invested significant sums in wimax in the US.

  • Yes and though I think WiMax is part of the solution I remain unconvinced of its usefullness in delivering high bandwidth high usage last mile access. WiMax is limited by physics into how much information can be crammed into the airwaves.

    Fiber is more limited by the stuff at either end allowing bandwidth to be upgraded by changing the endpoints. Makes for a more sensible investment for heavy duty broadband than using wireless.

    On similar note, I can see a private equity/venture investment in a wholesale fiber company that focused on using the cheapest methods to deliver fiber to as many homes as possible and rent out the fiber to all comers. I realise a bit pie in the sky but I expect that a small company that coordinates construction contractors and telco infrastructure contractors would be cheaper than having a telco with its massive overhead and revenue streams to protect do it.

  • Yep, wimax is part of the ubiquitous networks story but won't be enough to have us all watching video.

    Network infrastructure takes a bit much capital for VC, even if done cheaply.

  • Can't login via Disqus – annoying. Anyway…

    I think that a big determinate on shift to streamed content is going to remain broadband links. I've shifted lots of my TV/video viewing to my laptop but problems remain and they are mostly around the last mile. Even with 8mb BT the viewing quality isn't great and badly effected by network load.

    Come the point of 20+ mb (or more likely 50+ mb) with a contention ratio of 20:1 rather than 50:1 or 100:1 we see today, then shift to streaming will take off.

  • Sorry about the Disqus problem Simon. I will look into it.

    You are right about the pre-requisites for video streaming going mainstream, but I expect that the winners and losers in this space will largely be determined before then serving early adopter customers and pockets of the population with great broadband.

  • I've noticed it on other sites that clicking “Disqus” login prior to sending the post supposedly logs in but doesn't seem to reflect anything. It is a general “Disqus” problem and not something specific to your site. Logs in fine after entering post & details and then hitting post as guest.

    Yes and I think Amazon is well positioned for this, perhaps more-so that Apple. Amazon has the infrastructure to delivery cheaply (something I'm not sure Apple can easily replicated with partnerships or otherwise) which is going to be a big bonus (and shows the non-revenue benefits of AWS to Amazon as well).

    I think it would be in the interests of Amazon, Google, Microsoft et al to look at directly funding the roll-out of 100mb+ broadband through an investment vehicle. All three have enough fiber of their own to provide the backbone – it is the last mile where it falls down & I wouldn't be surprised if they can deliver it at lower cost and faster than the incumbents or telcos generally.

  • Interesting. Google has invested significant sums in wimax in the US.

  • Yes and though I think WiMax is part of the solution I remain unconvinced of its usefullness in delivering high bandwidth high usage last mile access. WiMax is limited by physics into how much information can be crammed into the airwaves.

    Fiber is more limited by the stuff at either end allowing bandwidth to be upgraded by changing the endpoints. Makes for a more sensible investment for heavy duty broadband than using wireless.

    On similar note, I can see a private equity/venture investment in a wholesale fiber company that focused on using the cheapest methods to deliver fiber to as many homes as possible and rent out the fiber to all comers. I realise a bit pie in the sky but I expect that a small company that coordinates construction contractors and telco infrastructure contractors would be cheaper than having a telco with its massive overhead and revenue streams to protect do it.

  • Yep, wimax is part of the ubiquitous networks story but won't be enough to have us all watching video.

    Network infrastructure takes a bit much capital for VC, even if done cheaply.