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Xbox Live Video Marketplace Succeeding Were All Others Have Failed

Variety reports that Xbox Live’s video marketplace, which sells video rentals and TV show downloads is enjoying success, a surprise since every competing service is, for the most part, a complete failure. The reason theorized: The Xbox 360 connects to a TV. Competing services, like Amazons UnBox, Movielink, CinemaNow, Guba and AOL, all download to computers or a limited number of devices while encumbered by DRM, making it more difficult than necessary to actually watch the damn things.

According to Variety, the studios are quite happy with the results. Despite the fact that the 360 is competing with every single desktop computer in America, its video downloads are doing as well, if not better, than downloads of the same videos from the competition. Considering that the “installed base” of 360s is only going to grow, and more people are going to try out the service in the future, it wouldn’t be a crazy idea to say that the 360 may actually be leading the pack already.

The success of the service is going to make it easy to convince movie studios to upload more movies and more content, which will in turn make the Xbox 360 more desirable to customers. It will be some time before Sony or Nintendo’s services are mature enough to handle video downloads, and such services may not even be planned (or feasable for Sony, which runs a movie studio and could have trouble negotiating with its own competition). Microsoft is building a powerful reason for people to choose Xbox 360 over the PS3 or the Wii.
(via PaidContent > TechDirt)

December 25th, 2006 Posted by Nathan Weinberg | General, Xbox, Xbox 360, Xbox Live | one comment
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1 Comment »

  1. […] It’s disappointing not seeing the Playstation Store having actual movie rentals and purchases. iTunes has them, the Xbox 360 has them, but Sony — which has a movie division (doh!) — doesn’t? Why not? Especially when Variety reports (thanks Inside Microsoft) that the Xbox Marketplace has been successful thus far. […]

    Pingback by Got a PS3, now what? » Make You Go Hmm | 12/26/2006

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