Friday, October 17, 2008

iTunes makes Blu-ray useless

Apple announced today that it has not only become the world's most popular TV programming store, thanks to 200 million unit sales of TV shows, but that all four of the major networks--CBS, Fox, ABC, and NBC--are offering high-definition content on the iTunes store.

If Apple is the world's leading store for buying TV shows and the world's largest music retailer, how can Blu-ray and it's measly 8 percent market share, expect to compete with Apple's freight train as it starts to pick up steam in the movie space?

Considering the fact that as of this past January, it had sold 7 million films on iTunes after 15 months of availability. Consider the fact that Blu-ray hit the 7 million-units-sold mark after 18 months, and it's quite obvious that people are ready and willing to download films instead of buying an expensive player and media to go with it.

Granted, the movies Apple has sold are standard definition and of the 2,500 films currently offered on iTunes, the 600 HD films can only be rented, but does that even matter? When we consider the cost of ownership between Apple's integration and Blu-ray's, it's difficult to see how it would make sense on any level to choose the latter. Not only are Blu-ray players more expensive than an Apple TV, it'll run you about $30 just to have one HD movie in most cases. And if you want to rent Blu-ray films from Blockbuster, it'll be $5.99 and you'll be forced to leave the house. The only logical way to get Blu-ray films into the house is through Netflix and even that company has raised its rates by $1 to make up for the additional cost of providing Blu-ray movies.

iTunes is growing at a rapid rate and it's no longer just a music store. And as more consumers find that they can have HD content in their homes with little or no effort, iTunes will claim another victim.