The right price for XBL TV and movie content

by Dustin Burg { Nov 14th 2006 at 11:10PM }

November 22nd is coming up and is the magic date in which we'll be able to download movies and TV shows via Xbox Live. We've already touched on what is going to be offered, HD and SD content, along with movie rental and TV ownership. The only problem I foresee with this service is not how much content will be available, but how much the content will cost. If movies cost less than what I could rent them for at the local video store, XBL purchases could be a possible option. Same thing with TV shows. If they are relatively cheap based on what the cost per episode is if I bought the whole season on DVD, then I'd be inclined to make XBL purchases. My magic numbers are $2 SD movie rental, $3 HD movie rental, and $3 SD/HD TV show purchase. What are your magic numbers?

Tags: downloadable content, DownloadableContent, marketplace, xbox live, xbox live marketplace, XboxLive, XboxLiveMarketplace

Reader Comments (Page 1 of 1)

Matt T. @ Nov 15th 2006 6:38PM

I say $3 sound right for a HD show download, $5 max. Anything under $5 is good for a movie rental since I like the fact that I can go to my classes ,come home and have a movie waiting.

nick @ Nov 14th 2006 11:21PM

The magic number would be a flat monthly fee like Netflix where you can receive and keep the movie for as long as you want-- watching it whenever and as often as you want, then return it whenever you're done, and obtain the next movie.

I'd cancel Netflix if Microsoft were able to accomplish this for new movies.

AoE @ Nov 14th 2006 11:29PM

Hmm, yeah, I have to say that Nick's proposal is pretty good.

Personally I have no interest in the sd movies or television, so I couldn't name a fair price. $2-3 for HD movie rental would be fair, and I'd even consider something in the $5 range fair; provided we could keep the movie after first play for more than 24hrs... that 24hr thing sticks in my craw; I don't know how many titles I'll be renting. To be honest if the inital movie lineup is any indication, there won't be any titles to tempt me anyway :(

Hoffer @ Nov 14th 2006 11:42PM

MS has said that movie rentals will be in line with other On Demand movie rentals. I have DirecTV and I think they charge $4 for a SD movie. MS also said there would be a premium for an HD movie. So, I expect an HD movie to cost $5.

As to TV shows. iTunes does the $2 per TV show thing. I guess MS will do the same and maybe add that $1 premium for an HD TV show.

zenprism @ Nov 14th 2006 11:45PM

I'd say I'd pay up to $6 to rent an HD movie, as my local video store doesn't even carry HD DVD yet (nor do I have the player...) But not having to leave the house is a big plus in my book, and worth a few extra bucks.
And I agree with AoE, I have no interest in SD movies. Seriously, once people go HD, it's very hard to go back to SD.
I hardly ever watch a movie more than once anyway, so the 24 hour thing doesn't really bother me. I could see how collectors might find it a turn-off however.

Microsoft just has to give us a great selection of HD movies and let our wallets decide.

Will @ Nov 15th 2006 12:00AM

How about some NBC and HBO stuff? Then we'll talk prices.

Adam @ Nov 15th 2006 12:14AM

I mean really... $6? At that price, just let me pay $20 a month to Netflix and I'll get them delivered to my door. It might not be INSTANT gratification, but you can plan pretty well in advance.

I guess I haven't rented a movie in a store for years, as I go the subscription route. I'd love for that to happen in this case... but I doubt it.

I guess I'm torn. I love the idea of this kind of service - it needs to exist. But, I just don't think that the prices can get low enough for me, to make me bite. If I have to purchase it right away, and watch it within 24 hours, and then I lose it for good... I can't imagine spending more than $.99 per movie (HD or SD). Although, I'm fairly sure I'd be willing to spend $20 a month on a subscription, and I'd probably never watch 20 things per month. Who knows.

JimJimBinks @ Nov 15th 2006 12:38AM

If they announce that content bought on the Marketplace store can be played on a Zune, I'll not only but a Zune, but I'll use the marketplace A LOT.

Platinum Skeet @ Nov 15th 2006 12:37AM

Blu-Ray/HD-DVD rentals where I live are $6-8 depending where you go. So $5-6 for a HD movie is good to me. I just think you should have longer than 24 hours to rent a movie.

Shows are good at $2-3. A season of shows is about 10-15 episodes. Do the math and your saving a money. A season of a show would be $40-60 depending on what show. Plus you'd have to pay for the dumb skits or episodes you don't like.

That's why the TV appeals to me. I hated buying the DVD's of shows because you get the episodes you don't want. Now I can just find all my favorite's and download them to my X360, for a quarter of the price...

hot zizzy @ Nov 15th 2006 12:57AM

"Shows are good at $2-3. A season of shows is about 10-15 episodes"
Not necessarily - all the good dramas, like 24, Lost, Prison Break, Battlestar Galactica, etc are usually 24 episodes. The DVD set is usually about $50, so $2 a show isn't quite a deal. Granted, you get it early and in great quality, but I think lower prices should be used (even though Itunes charges that much). However, none of the above shows will even be offered at first, so I guess it doesn't matter yet.

Ian @ Nov 15th 2006 1:09AM

The real "magic number" is whatever price we will have to pay for a new hard drive. I like to keep a lot of content, if I have to buy 1-2 overpriced hard drives, the the cost of content is not a much of an issue. For a bit more money a full featured PVR with more features and cheaper components makes more sense.

Measure @ Nov 15th 2006 1:11AM

I don't think I would purchase individual TV episodes...

As for Movies, I can drive half a mile down the road and rent for $3, and keep it for a week.

Given that digital distribution may be more convenient than driving down the road, but on the other hand it sounds like I can't keep the movie for as long... I'd say the value should be equal.

So, $3 movie rentals over XBL, and a good selection, I wouldn't hesitate to rent a few films.

ljbad4life @ Nov 15th 2006 1:15AM

well for me a $5 rental is just fine for hd. I hardly ever watch movies more than once, but when I am in the mood to watch a movie I surely don't feel like drudging down to a retail store just to have to ask the sales person where it is and have them go rummaging in the back for it....

tried netflix, but there's too much in a delay in between it being on my list and being in my home, plus that whole making a list stuff really doesn't do anything for me... makes me feel like i'm doing homework.. ugh those days are over!

anyway I digress, 2 bucks for sd tv show is fine, 3 for hd, anything more than that and I'll start recording on my dvd recorder again...

Matt T. @ Nov 15th 2006 6:38PM

Another nice thing.....How about your bought TV shows can be transfered to the Zune.....genius idea/

Don Wilson @ Nov 15th 2006 2:11AM

$1 show rentals, $3 movie rentals, that's it.

Billen @ Nov 15th 2006 12:31PM

I would never, ever, pay 400 MS points to rent a movie online via XBLA.

refinedsugar @ Nov 15th 2006 2:42AM

Everyone talks about price, but ask yourself - are you going to download 5gb's of HD material if it means you can't play games while the download is going? We all bought 360's to play games right? This to me should be the primary concern. The amount of time potentially wrapped up in this HD marketplace concept sounds staggering.

It's hard enough sometimes fitting in gaming so I can't see myself further dividing the time I have for gaming by turning my 360 into a download station. I am not of the persuasion that I'll leave my internet connection and xbox 360 on overnight to download either. If broadband internet services as we know them and Microsoft's xbox live marketplace were a lot more speedier this might be a cool alternative to already existing distribution methods, but the cost of locking up my 360 for multiple hours of time and a few dollars for nothing tangible is asking too much. Especially with comparisons in both time and cost to other already established distribution methods widely available.

Microsoft will undoubtedly come out with a bigger 360 HD and I can see this service catching on with the casual gaming set and undergoing a hype factor at first, but in the long run the service asks too much in time and money when better alternatives are already out there for people looking for this type of on-demand pay service both in the physical and digital realm whenever or not they are gamers. Add in the fluctuating nature of technology, the HD era and how nothing is written in stone and you really have a hard sell on Microsoft's marketplace platform. Much like the recently released HD-DVD external add-on that if bought signifies that you've already banked on HD-DVD winning the ongoing format war. If you're a gambling man and like those 50/50 odds have yourself a ball, but for all things considered on these two new pieces to the xbox 360 universe, I'm out.

BovineDeath @ Nov 15th 2006 3:18AM

I hope it's expensive, my parents own a video shop!
I think that a big part of the videos on XBLM is to make the Zune competitive with the Gen 5 iPod, so I wouldn't expect the tv shows to be much more expensive for HD, and the same price or lower for SD. Keeping in mind that the iPod is already established and has a bigger library, MS will need to entice people to Zune somehow.

Luke @ Nov 15th 2006 3:26AM

I don't see any real appeal to this video marketplace. I'm sure I'll try out at least one HD movie, but I rarely have time to sit down and watch a full movie and downloadable tv shows don't appeal to me at all unless they're cheaper than buying the season on DVD. The 24 hour viwing limit is a real buzzkill for me. I wish MS would have copied experiences like netflix or movie rental stores because I never buy off pay-per-view services and never will. They're overpriced and over restricted.

JJ @ Nov 15th 2006 5:51AM

I think its a cool feature... but as i have Charter, and On Demand and a built in DVR in my cable box... its kinda useless to me.

But hey i guess its good for all those who dont subscribe to cable tv, or have a DVR.
(which however, i dont think is too many people on this blog, what with all the HDTVs and HDDVD add on talk going on)

pinksage @ Nov 15th 2006 9:27AM

The cheaper the better. But, making an estimate on what these things really cost, I know it wont be so cheap. Cable providers that offer ondemand service, HD Movies at 5.99 and 3.99 for regular movies.

As to TV Shows is concerned, I dont know how to price something that can be for free on tv or youtube, haha. But maybe 1.99 is not so bad for tv. 99 would be ideal.

xboxer @ Nov 15th 2006 2:44PM

A dowloadable movie service have very little overhead cost compared to a brick and mortar video rental store that I expect to see some of the savings reflected in the price. But, you say, the convenience of "On demand?" Hardly, these will take a good while to download to be sure. I can stop by a "big red box" at McD or the grocery store on the way home to get my $1, 480p movie.

Andrew @ Nov 15th 2006 10:30AM

My question is how long will it take to download an HD movie? I believe my cable connection is 7 MBPS. Whenever I rent a movie it is usually a spontaneous thing. I don't want to wait like 4 hours to download a movie before I can watch it.

Edge of Blade @ Nov 15th 2006 2:17PM

Gas plus time premium minus download time equals...about the same as if I rented at a brink and mortar. It's "in line".

xfan @ Nov 15th 2006 1:40PM

It's been years since I've walked into a store and rented a movie, and I've never adopted OnDemand, although I have access to an excellent OnDemand system.

For me, a flat montly free, with no limitations on how long you can keep or watch the movie is perfect. Which is why I'm currently with Netflix.

The pay per movie model, with limitations on how long you can keep the rental never really seemed to work well for me. I can't imagine wanting to back to that.

As far as SD and HD, I'm glad they offer both. My 360 is hooked up with a standard definition TV. I would consider downloading SD content, if it were something that I'm not able to obtain already (ie free TV with my DVR). As far as an HDTV... I'll have one someday. Been watching the prices drop, so maybe in another year hopefully.

JJ @ Nov 15th 2006 2:37PM

Well xfan if ya have cable TV, ask them if you can upgrade to OnDemand... its essentially the same thing that MS is gonna offer, but i'd hazard to say you have more of a selection and Free selection at that, from On demand.
I mean why pay to rent movies when they show them on cable and ondemand for free ya know?