The Apple iPod and the Motion Picture Business

To say that the Apple iPod has revolutionized the home entertainment business would be a colossal understatement. Not since the Sony Walkman has a small, portable device taken the world by storm. Unlike the Sony Walkman of old, the Apple iPod has far more versatility as it can play both audio and video. Perhaps the greatest impact that the Apple iPod may have in the coming years is how it will affect the motion picture business when the process of paying money to download a film becomes a reality.

While some have made the statement that the downloading of motion pictures will yield the death knell of attending theaters, this argument was first put forth with the expansion of television in the 1950’s, the introduction of Pay Television in the 1970’s, the expansion of videotape recorders in the 1980’s and the introduction of DVDs in the 1990s. (Note: the word “expansion” is used for videotape and television as opposed to “introduction” because television was invented in the 1930’s and videotape for home used was developed in the early 1970’s. Neither of which caught on until years later due to cost) In all instances, movie theaters survived and thrived. Granted, revenue has been down lately, but DVDs sales have gone through the roof and the money goes to the same place. (Warner Home Video instead of Warner Motion Pictures)

The use of an Apple iPod as a variant of Pay Per View or DVD sales will not harm the sale of tickets for films as much as it will greatly expand the revenue streams of home entertainment. In fact, since a download does not require packaging or manufacturing, the profits on Apple iPod downloads should be stratospheric. This all leads to some interesting speculation as to what the Apple iPod landscape will look like in the near future.