Download-to-own dawns in U.S.
Studio-owned services offer permanent copies in the DVD window
By Jennifer Netherby -- Video Business, 4/3/2006
APRIL 3 | The era of download-to-own has arrived in the U.S.
Beginning today, studio-backed Internet movie service Movielink and rival CinemaNow will offer permanent downloads of movies from several major studios day and date with their DVD release.
Movielink will offer films from Universal Studios, Warner Bros., MGM, Sony, 20th Century Fox and Paramount. Sony, MGM and Lionsgate will make their movies available for download-to-own through CinemaNow.
Initially, Movielink will offer Universal's Brokeback Mountain, CinemaNow will have Sony's Hostel and both sites will feature Sony's Fun With Dick and Jane.Downloads will be close to the price of a DVD. Movielink new release downloads will be priced between $20 and $30; older releases will be priced between $10 and $16.
CinemaNow films will be priced between $9.95 and $19.95; the company is running a promotion offering a second download for $4.95.
Movielink and CinemaNow edged out big name competitors Apple, Amazon, Google and others to become the first to offer permanent digital downloads in the U.S.
“We’ve been in business for awhile now, there is developing confidence in digital rights management, there’s developing confidence in the economics of the business. And there’s developing consumer interest that has exploded in last year or so,” said Movielink CEO Jim Ramo. “This is really Movielink trying to satisfy that demand.”
Movielink is jointly owned by Warner, MGM, Sony and Paramount, all of which are making download-to-own movies available through the service. Lionsgate has an ownership stake in CinemaNow.
CinemaNow CEO Curt Marvis said the deals kick off the mainstream digital movie download market and allows the studios to offer legitimate alternatives to pirated copies.
“I think [the studios] gave up on waiting for all the perfect technology to be in place,” Marvis said. “Studios want to be pro-active in transitioning to a digital market.”
Thomas Lesinski, president of Paramount Digital Media Group, said permanent downloads complement DVD and offer an alternative to illegal movie sharing. “There’s a lot of activity and a lot of numbers that help validate that digital consumers out there are willing to pay for content,” he said.
Under the Movielink agreements, studios can pick which movies they want to make available for download-to-own and whether the timing will be simultaneous with DVD, but Ramo said he expects that the majority of new releases will be made available for download.
Movielink’s service launches with hundreds of recent releases including Universal’s Pride & Prejudice and King Kong; Sony’s Rent; and Warner’s Harry Potter and Goblet of Fire, as well as older films.
Lionsgate and Sony will debut all of their DVD new releases day and date on CinemaNow going forward, Marvis said. CinemaNow will launch with 75 films from Sony and MGM, including Memoirs of a Geisha, Bad Boys 2 and Easy Rider and additional films from Lionsgate including Saw II.
“This partnership with Movielink and CinemaNow is just the first step in a bright future for digital delivery that will only serve to complement our packaged media sales business,” said Sony Pictures Home Entertainment president Ben Feingold.
Users of both services will still be limited in where they can watch the downloads.
Through Movielink, users can transfer download copies to two other computers and burn a backup copy on a DVD. However, the DVD will only be playable on a computer and not on a set-top DVD player. Copies also can not be transferred to portable media devices at this time. Users will be able to stream downloads to other devices in their house for viewing.
Through CinemaNow, users will be limited to watching films on the computer to which they download the movie. However, Marvis said he expects future deals will be expanded to allow viewing on other computers and portable devices.
Both services will use Microsoft Window’s digital rights management technology.
Rental downloads on both services will still be available only in the pay-per-view window.
There will be a limited amount of bonus features available for download with the films.
“We don’t expect initially to get a lot of bonus features like you get on the DVD,” Ramo said. “We’re trying to provide a digital option to match the packaged goods option consumers have today. There will be differences.”
