Lionsgate Entertainment (LGF) announced a
new deal with Apple (AAPL). Starting
with the Rambo movie, folks who buy the DVD version will be able to transfer a
digital copy of the film to their iTunes.
Cool. Now I can see Sly Stallone on
the iPod and then when my friends come to visit, I can bring out the Blu-ray –
all for the price of one DVD. The
transfer to digital will be restricted to a one time transfer. This is significant, I think, for two
reasons.
First, it reflects an ever-changing media landscape where
delivery channels are expanding, and in this case, going mobile. This seems like a good thing and could very
well be the beginning of the new-new digital age. Or it could be the beginning of the end. I believe ultimately that the expansion of
media channels will compromise the idea of “owning” movies. How many channels and formats can the average
consumer keep track of?
Second, it highlights the #1 reason why
the iPhone has not set the world on fire – at least not yet. iPods and iPhones rely upon a software link
with Apple iTunes software. Without that
software, you are dead in the water.
Most of the time iTunes sits on the home PC -- the mother ship. If you are cutting edge, you have a home-based
media server. If you do, you have to
maintain your iTunes software there and plug your iPod (or iPhone) into the
media server for a synch and charge. All
that cool iPhone finger scrolling and touch-screen zooming is for naught if you
use multiple computers or you have to wade through the trash to perform the
ritualistic synch function. I keep my
server under the stairs in the garage.
This underscores another problem with the iPhone. It is not ideally suited for use within the
enterprise. Here the Blackberry still rules
(RIMM). Most companies forbid the use of
iTunes Software behind the company firewall – with some exceptions. Salesforce.com (CRM) recently announced support
for the iPhone. Genentech and Nike also announced
the internal adoption of iPhone technology.
Having said all that, there is little doubt in my mind that
Apple is moving into the media business.