XBox 360 as a Distribution Model?

Cinematical Cinematical blogs about the possibility that the XBox 360 is the future device of a VOD world. He quotes an article in yesterday’s Vareity by Ben Fritz.

“(D)evices like the 360 (and soon, the PS3) any and all gaming applications are merely “Trojan horses to get Microsoft and Sony devices into as many homes as possible.” He posits that if studios want the valuable, young male demographic to watch their films, they’ll go out of their way to make the content available on Sony’s PS3-compatible Blu-Ray DVD, or format their media for delivery via Xbox Live.”

Maybe, in the long run. But I doubt you see this any time soon. The problem is that while you would in fact get many people to download movies for their XBox 360, the studios are not too keen on people downloading movies INSTEAD of buying the DVDs. While they would certainly pick up some new buyers with VOD, they risk cannibalizing their more lucrative DVD franchise and as such they won’t risk it.

Of course they do experiment with things like CinemaNow (which by the way will allow VOD movies on your XBox 360 today on a VOD basis if you use it as a Media Center extender) but these are poor quality movies. To offer you true HDTV hit movies on demand would be too risky a move for the studios to make. It will be here eventually of course, but only when it is absolutely necessary from the studios perception and even then very reluctantly.

Be Sociable, Share!
Loading Facebook Comments ...

No Comments

  1. Eddie Parker says:

    You honestly think that the DVD market would be more lucrative than a VOD type service?

    I imagine the reverse would be true: packaging and distribution costs alone are staggering. Granted, I’m no authority, so this is just my two pennies (Canadian, no less).

    I do agree that we won’t see it replace DVD’s anytime soon however: I just heard a number, something like 30% of American households own a console: and I’m betting only a small percentage of those are Xbox360’s or PS3’s.