Sorry Apple, Netflix Is Just Too Good

by James R. Stoup Jan 28, 2008

I like what Apple is trying to accomplish with their new movie rental service and applaud them for boldly moving in the right direction. Unfortunately, they are a long way from reaching the point at which I would actually pay for this service. So, kudos to you Apple for trying, but I think I will stick with Netflix for a while longer. But in the spirit of fairness, I must give them credit for doing a few things right. So, here are my thoughts on this newest venture and where I feel they should take it in the future.

The idea behind renting movies online is great. In fact, it is something I have been waiting for for quite a while. So I have to give them credit for taking something as potentially annoying as renting movies and applying the “Apple Touch.” They have made great strides in making things much simpler than just about anyone else out there.

Apple has managed to get all the major studios on board with this project and they have a starting library of around 1,000 titles. And while initially that number might look low (Netflix has over 90,000 titles for comparison), I wouldn’t be too worried because Apple will be furiously adding new films as the year goes on. So, if your favorite movie isn’t on there yet, wait till June and see what they’ve added then. Granted, this doesn’t help you much right now, but of all the problems with this service, this is one that will solve itself given enough time.

High Def fans will be happy to know that for just a dollar more they can rent titles in HD. I can’t imagine how big the files must be, but I’m impressed that this was an option. Better yet, Apple TV now behaves more like an appliance and less like a computer! This means that you can now access, buy, and rent media without syncing it to another computer. In fact, one of Apple’s big selling points was that you can hook up your Apple TV to your brand new HD TV and rent High Def movies instantly. Clearly, then, they are trying to improve the user experience as much as they can. In fact, much of what I liked most about this service directly relates to how Apple has streamlined the interface. They have done a nice job of retooling things to better fit this new model.

Sadly, what I like least about these new rentals is what was least in their control, the DRM rules. The notion that your purchases will be automatically deleted because you weren’t fast enough to watch them pisses me off quite a bit. Fruit goes bad. Milk expires. Digital media, on the other hand, shouldn’t have a time limit on it. And there really isn’t anything Apple can do to convince me otherwise. I just can’t bring myself to spend money to rent a movie when I know that if I accidentally play 1 second of it, then suddenly I have started the countdown toward its eventual deletion. Having used Netflix for over a year now, I have become quite satisfied with the concept of renting a movie and watching it whenever I like. Now, I suddenly have to start keeping track of deadlines again. The thought of adding that extra bit of stress back into my life doesn’t really appeal to me, shiny new interface notwithstanding.

And while we are on the subject of interfaces, I am going to have to get on my soapbox again and complain about iTunes. Simply put, it does too much. Lets total it all up, shall we? Here is what we currently use iTunes for: managing songs, movies, podcasts, iPod games, purchasing songs, purchasing TV shows, purchasing movies, renting movies, and, in case you forgot, playing music. Please Apple, bolt a few more features onto it. I can still almost use it.

Getting back to the matter at hand, I like the idea behind what Apple is trying to do, but I find the rules for it far too restrictive. There just isn’t a good enough reason for me to forsake Netflix in favor of this service. For instance, if you use Netflix’s cheapest service you could rent two DVDs a month for $4.99. That means unless you absolutely need to see that movie right this second, it is cheaper for you to wait for your movies to slug their way through the mail. Netflix becomes an even better deal when you upgrade to one of their Unlimited plans. Assume you rent two new releases on DVD at a time, with unlimited returns for $13.99 a month. Now, I realize the service is very much limited by the mail and how fast you can actually watch these movies, but let us assume a reasonable number for the sake of argument: two new movies each week for a month. That is about eight movies a month for $13.99. That works out to be about $1.75 a movie for Netflix compared with $3.99 a movie for Apple. And of course this number will vary depending on how the mail runs, but if anything I think I’m underestimating how fast the turnaround is for Netflix. Either way, you can see that it is two to three times more expensive to rent from Apple than it is from Netflix. And, Netflix offers you no penalties or restrictions on how you can watch your movies.

So, overall I appreciate what Apple is trying to accomplish. However, at these prices and with these restrictions, I can’t realistically see myself using this service anytime soon. Maybe if they adopt a Netflix-like model I will start using it then. But until something major changes, I won’t be using iTunes Movie Rentals.

Comments

  • Just a question - I’ve heard comments that if you try to rent a LOT from Netflix (on their unlimited plan), that Netflix starts slowing you down. Not sure if it’s true but sounds plausible. I assume 2 new movies a week is fine long term, eh?

    Keep in mind we’re talking about two different aspects of Netflix’s services - streaming download and physical discs.

    These are three different models, each with advantages and disadvantages.

    Netflix offers unlimited streaming of 6000 titles any time you want.  The player is easy to use and remembers where you left off.  The downside is that it’s IE and Windows only, although that will change this year.  Also, you are tied to your computer.

    Netflix also offers physical discs of course, both SD and HD.  You get to keep them as long as you want, they have extra features, and you can play them virtually anywhere without being tied to your computer.  The downside is the wait time.

    You get all of this at Netflix for a monthly subscription fee that averages around $17/month.

    Apple’s model is basically a la cart on-demand movie rentals.  The upside is immediate downloading that you can watch on your computer, and your home TV if you have the additional $230 Apple TV.  Otherwise you are tied to your computer unless you want to watch it on the 2.5-4” screen of your CURRENT generation iPod (the 5G video iPod does not work) or iPhone.

    And HD is ONLY supported on the Apple TV, which makes no sense at all unless they’re just trying to push sales of that unit.

    So looking at the pros and cons, it seems to me that Apple is competing less with Netflix than it is Blockbuster or VOD.  It can run Blockbuster out of business for all I care, but I think Netflix still offers a compelling package.  Personally, I’d only use iTunes Rentals to fill in gaps not provided for by either Netflix DVDs or Netflix streaming.  Which is basically how I currently use Blockbuster.

    Beeblebrox had this to say on Jan 31, 2008 Posts: 2220
  • Now granted 6,000 is greater than 1,000. But, I imagine Apple will get to 6,000 relatively quickly.

    And of course Netflix will be constantly expanding their library as well.

    Also, remember that Apple’s rentals follow the DVD release date by 30 DAYS.  That’s a long time for the new releases that basically drive DVD sales and rentals.

    Beeblebrox had this to say on Jan 31, 2008 Posts: 2220
  • And HD is ONLY supported on the Apple TV, which makes no sense at all unless they’re just trying to push sales of that unit. -Bbx

    Streamed HD on AppleTV only, duh! I know your Macbook (and mine’s) have the minimum rez for 720p but I wouldn’t watch HD on a 13.3” screen. HD was and still is better on BIG panels.

    Purchased HD movies, on the other hand, should play on your Mac/PC courtesy iTunes/Quicktime or, if your gadget can take 2GB or more with the lessened resolution (duh! yet again) please feel free to do so.

    Robomac had this to say on Jan 31, 2008 Posts: 846
  • ...it seems to me that Apple is competing less with Netflix than it is Blockbuster or VOD. -Bbx

    Reality check, plz. This business is all about MOVIES.

    What does ÓTV have that neither Netflix nor Blockbusters will ever have and will never be capable of offering? The answer in post #7. Please look it up.

    The movies, physical or streamed, are great. It effortlessly kills a good two hour of nothing in our lives. All of these services do great when it comes to delivering movies.

    Yet, only one of these have the potential to be much more. A growing monster potential of an open broadcasting medium called Podcasting is built into this ÓTV thing and all other Macs/PCs/Apple portables that run iTunes.

    The potential is so huge, both for Apple and normal users like us who wants in on the bandwagon and make a few bucks. Apple will be rewarded with ad revenues and fees for hosting the channels or store fronts, a la eBay. In turn, we get to sell our content in one of the internet’s most visited page - the iTunes Store front page.

    So, for as long as there will be physical discs to sell, Netflix and Blockbusters (or a combination of the two, I hear) will still be around peddling a “me too” clone of ÓTV. But the days of the round platter is now numbered. It might take a few years. It might take a decade. Yet the writing is on the wall and you can’t deny it.

    Robomac had this to say on Jan 31, 2008 Posts: 846
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