Wednesday, February 15, 2006
Disney Plans Service To Beam New Movies Right Into Your Home
Disney just announced a new service to compete with Netflix and DVD rentals. Called MovieBeam, it promises to send regular and hi-def movies right into people's homes. Disney got a bump in its stock, while Blockbuster took a hit. The service includes all the major studios and just launched in 29 major cities. But so what? It's a terrible idea that will flop. People are expected to buy a $200 set-top box (which they'll presumably balance on top of their cable set-top box and the DVD player and perhaps that old VCR as well). Then they pay $30 for an installation fee and then pay $5 to watch new releases and $2 for older titles. The box comes loaded with 100 titles and Disney rotates in ten new releases a week. In short, you have an incredibly limited number of titles to choose from, you pay more than you would at Blockbuster, a LOT more than you do at Netflix and you have to buy another expensive box for the privilege of doing so. And does it somehow provide a better experience than the VOD with countless titles already available from most people's cable companies? Not in the least. MovieBeam is a joke and I have no idea why Wall Street fell for it.