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Source:Valleywag

The Financial Times reports that Apple and News Corp.’s 20th Century Fox film studio have signed a deal for digital movie rentals. Consumers will be able to rent the latest Fox DVD releases from iTunes for a limited time. The deal, which will likely be announced at Macworld in January, would likely be matched with an upgrade for the woebegotten AppleTV which has been de facto dead on arrival since it was released. It is suspected that Disney, which has extremely close ties with Apple — Steve Jobs is its largest shareholder after Mickey bought his Pixar animation studio — will be on board at launch as well.

One analyst said “Fox and potentially other studios are coming around to the idea that there is nobody out there to challenge iTunes.” The rumor mill pegged Sony, Paramount and Warner Bros. as having talks with Apple about movie rentals, but this is the first concrete evidence of a deal. With Apple getting into millions of homes as a result of increased Mac sales and millions of video-savvy iPods and iPhones sold this holiday, the service could get off the ground much faster than competing services from Amazon or Netflix, which have foundered. We mentioned the possibility of Apple setting up a movie rental service back in November.

Source:Valleywag

Hollywood, abetted by Internet pundits, has drawn the wrong lesson from the rise of YouTube: that the only way to make cash on the Internet is to offer bite-sized chunks of content. Hence Quarterlife, the microshow about 20-nothing artists. The only reason anyone cares about it is NBC picked it up for broadcast distribution, impressed by Quarterlife’s 700,000-viewer debut, and will splice together 8-minute Web segments into six hour-long episodes that will air on broadcast TV this February. The only problem is that Quarterlife episodes, shown on YouTube and MySpace, are now averaging a mere 100,000 viewers.

That’s nothing to sneeze at, but Quarterlife has been touted as the “first television-quality production for the Web,” and 100,000 viewers would mean instant cancellation on broadcast TV. TV-level production values plus Internet-size audiences is a recipe for financial disaster.

But the real draw of YouTube isn’t that the content is short; it’s that it’s easy to find and share. YouTube only implemented a 10-minute limit in an attempt to slow the flow of copyrighted content; users got around it by breaking up longer shows into 10-minute chunks. Plenty of people watch full-length shows online; indeed, that’s one of the supposed draws of Hulu, NBC and News Corp.’s video joint venture.

The numbers are compelling. The number of people snagging free content off Pirate Bay has doubled to 8 million in the past year. According to SumoTorrent tracker, 50 percent of BitTorrent traffic is devoted to downloading television shows. And the audience viewing TV shows online is 25 percent more engaged with the show their couch-sitting counterparts.

The lesson: Web users can stomach full-length episodes. There’s no reason to chop up narratives into bits for the sake of online attention spans. No, the real quandary is finding a big enough of an audience to support broadcast production values. Doing things the old way doesn’t work: Eisner, the former Disney CEO, lost buckets of money on his “hit” Prom Queen, claiming it cost him $3,000 for every 90 seconds of footage.

This entry was posted on Wednesday, December 26th, 2007 at 9:23 pm and is filed under youtube, File Sharing, nbc, online video, Top, Feature, Michael Eisner, Vuguru, Prom Queen, Quarterlife. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.