Amazon turns to movie streaming in beta
UPDATE: Video On Demand service possible replacement for Unbox
By Danny King -- Video Business, 7/17/2008
JULY 17 | After a slow start for its two-year-old download-based Unbox service, Amazon is preparing to replace Unbox with a streaming-based video-on-demand service called Amazon Video On Demand. The new service, which began its beta phase today with a small number of invited Amazon customers, apparently allows videos to be watched inside a browser, rather than requiring users to download a proprietary player, as with Unbox.
The world's largest Internet retailer also has an agreement with Sony in which owners of the TV-makers Bravia HD sets can buy a component allowing Amazon VOD programs to be streamed directly to the TV.
Amazon Video on Demand will operate with Unbox's inventory of 40,000 titles, representing fare from every major studio except Walt Disney Studios Home Entertainment.
Unbox continues to operate, at least for now, and Amazon officials declined to say how many people are participating in the beta phase of Amazon VOD or when the new service might be expanded.
In a promotion on its Unbox main page, Amazon says, "What's next for Amazon Unbox? Hint: It's PC and Mac-friendly and it's coming soon. Our Beta is currently full, but you can click here to be notified as we expand participation." A small image shows a computer screen with the words "Beta" below it and "Watch now" above. (Watch Now is the name of Netflix's streaming service.)
Amazon VOD pricing mirrors Unbox, with titles priced at $1.99 per TV episode purchase, $3.99 for most movie rentals and from $7.99 to $14.99 for most film purchases. Customers who buy titles from Amazon VOD do not download them, but have them available in a personalized browser indefinitely, while rented titles will be available for as many as 30 days, or 24 hours after the title is played.
The streaming approach, at least in principle, gives customers access to their library from any Internet-connected device, without having to copy the file to multiple devices. It would, however, limit the ability to store files on a portable device for watching on an airplane, for instance, where there is no Internet connection.
No high-definition titles are available.
The replacement of Unbox might be an admission from Amazon less than two years after the launch of Unbox that its requirement for customers to download a proprietary player might have hurt demand as it competed against services such as Apple TV, Netflix and Vudu. Amazon's media sales accounted for 61% of its first-quarter revenue, down from 66% a year earlier.
As with Unbox, movie titles are available to buy the same day as the DVD release, with rental availability about two weeks later. NBC's TV shows are available right after the episode airs, but shows on all other networks can be purchased the following day.
Amazon launched Unbox in September 2006 and said it was "upbeat" about its performance five months later. The company has never disclosed sales related to the service.
Paul Sweeting contributed