online video distribution

With Blockbuster filing for bankruptcy protection next week, we lose an institution, a part of our culture for so many years, and lead the way to a possible monopoly of Netflix and or Hulu with their online streaming strategies.  Redbox’s surge to acceptance can not be ignored as well.

From Digital Media Wire:

Los Angeles - Video rental giant Blockbuster(NYSE: BBI) told the six major movie studios that it is preparing to file for bankruptcy next month, the Los Angeles Times reported, citing sources. The company is strapped with nearly $1 billion in debt and unwanted leases on more than 500 of its underperforming rental store locations, and has lost a total of $1.1 billion since the outset of 2008.

Blockbuster is likely to enter a “pre-planned bankruptcy,” wherein many creditors are included in the process before the court weighs in.

The company, which has already shuttered more than 1,300 stores, has faced increasing competition in DVD rentals from Netflix and Redbox, and in the home video market from pay-TV video-on-demand, as well as online services like iTunes.

LG and Netflix announced a partnership today that will make its on-demand streaming movie service available on LG HDTVs beginning this spring. Netflix has also previously announced deals with Xbox 360 and blueray players.

What continues to mystify me is the constant attention to the TV in the living room or den. Sure, the majority of people watch broadcasts from their primary television set, and, wouldn’t it be nice if you did not have to attach another set-top box. The reality is that most people will continue to have a set-top box/dvr/tivo for on-demand viewing from their cable or satellite provider. Having multiple boxes produces confusion and clutter. Point taken.

However, todays technology is making it easier and easier to consume content when you are NOT parked in front of the big screen. Netflix’s continued arrogancy that “There’s a limited market for people who want to watch a 2 1/2 hour movie on a 2 inch screen” (Netflix spokesman Steve Swasey) is a very “DEC-esque (Digital Equipment Corporation/Ken Olsen “there is no reason for any individual to have a computer in his home.”)

The reality is that we can consume content anywhere, on many devices. Like many of you, who have a love for great content, I do not have the luxury of being able to watch everything on the TV. Tivo and DVR’s are GREAT, however, they are not going to do me any good if I am on a train to NYC, at the gym, at the airport, on a plane, or anywhere I might have some spare time, but not being connected to my TV or the internet. I would never get to watch some of the great content out there if it wasn’t for ipod or iphone. Blackberry is getting in the game, and those running smartphone with android or windows mobile are getting better options for viewing content.

Content comes in many shapes and sizes today. There are full featured movies, TV shows, Corporate training, educational programming, e-learning programs, and much more. The most important issue at hand is: How do I effortlessly get that content to any of my devices so I can truly watch it anytime/anywhere. Apple certainly has a stronghold in this area. Case in point scenario:
1)Launch itunes
2)Choose content (Movies, TV shows, Video Podcasts, personal video)
3)Sync to ipod or iphone
4)Done. Period.
(Note: you can also watch web content from youtube or quicktime movies delivered over the internet)

Let’s not forget another important point.  Once I have purchased content from itunes (also generally less expensive than buying the DVD), I now have a :

1)Digital version of the content stored in a digital library (goodbye to the closet shelf system for DVD’s)

2)I can watch it on my TV(via apple tv), ipod, iphone or PC (hello to more time not spent converting it to all the different formats)

The ability to consume content anyplace/anywhere is a tremendous leap for content providers and distributers. Why is it that Netflix CEO, Reed Hastings, believes that the future is delivering web and web video to the television set? How many years has it been that we still cannot view flash or flash video over devices other than a web browser? I am not sure I have the patience anymore, certainly not now with the availablity of innovative programs created for the iphone and android.

One advantage, however, that Netflix does have, is its extensive library of titles.  Apple still needs to do better in securing distribution of more content from a variety of content providers.