Saturday, November 04, 2006

Amazon launches Unbox...check it out has launched its new digital video download service, Amazon Unbox . Unbox already offers thousands of TV shows (including those that aired last night!) and movies with DVD quality, which is triple the quality of commercial internet video services delivering content. It uses Remote Load technology, which allows customers to buy from one PC and download and watch on another within 3 to 7 minutes after ordering!

What does this mean to the traditional brick-and-mortar video stores like BlockBuster, Inc. and Hollywood Videos? Digitized video has been gaining popularity. Plus, there is peer-peer downloads that are posing a great threat these days to the BlockBusters of the world. No wonder BlockBuster's 5-y share price has been falling consistently (well, it's at least remained a little flat in the last one year, I think that's because they are making some money from their online stores following Netflix's business model)

It's currently trading at $4.37 per share, I can't even buy a single DVD with that!

I think Unbox is the way to go! With minimal efforts to order a DVD quality movie, I also get to keep it with me forever if I want to and it does not occupy physical storage space.
However, one thing that concerns me is the lead time for a movie to be released with Unbox. I'm not sure how their contract works and whether the studios (like Universal, Disney, which make the movies and hold all the rights to it) will release them to Unbox within the same time they make the DVDs available to BlockBuster and others. If yes, would/should BlockBuster react?



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