Apple introduces iTunes movie rentals, HD rentals

Apple has officially announced movie rentals for iTunes. Studios involved include Touchstone, MGM, Miramax, Lions Gate, Fox, Warner Brothers, Walt Disney, Paramount, Universal, and Sony, just to name a few. The new feature will launch today with 1,000 available films by the end of February -- prices will come in at $2.99 for a regular rental, and $3.99 for new releases. You'll be able to begin watching your movie in 30 seconds, and will have the rental for up to 24 hours, during which time you can transfer the file to an iPod or iPhone and take it on the go. Additionally, you'll be able to nab HD rentals for just $1 more, respectively.

[Jason @ Jan 15th 2008 12:56PM]

For me, this is a little more expensive than Netflix. I watch at least 5 movies a month, for a $15 subscription fee. So that's $3 per disc at most, and closer to $2 much of the time. If iTunes can build their library up big enough, I might consider switching. Netflix's online viewing selection isn't so hot right now.

[MEAT! @ Jan 15th 2008 12:59PM]

Am I the only one that doesn't want to use iTunes for everything under the sun? I remember when it just played, you know, tunes, and did that fairly well. It got so bloated that I switched back to the lightweight Winamp.

[Reid @ Jan 15th 2008 1:38PM]

Dude,

iTunes has always been huge and bloated. And it runs pretty slowly on Windows, which fortunately is no longer a concern for me since I have a Mac at work too now.

I think Steve got it right the second time around; people don't want to have to go to their computer to buy/rent a movie, then go to the living room to watch it. Especially people using clunky/slow iTunes for Windows :)

What remains to be seen is whether this remains a relatively small niche product, or a must-have. For $230, and the capabilities it has, you'd think it would do well. Who knows.

I might consider buying one now that it's more in impulse-buy territory. I've been using my XBox 360 to stream movies from my Mac; didn't feel like paying $300 to do the same thing but with a better interface. I won't be using the rentals though, I'll just continue on with my Netflix..

[Tom B @ Jan 15th 2008 5:10PM]

Right you are, Reid. Apple made two big steps today in the progression of Apple TV in iTunes Rentals, and starting to offer digital versions on DVDs. Apple wants another iPod. And it could get there, if only they had a few things:

1. They still don't offer a way to convert your current DVD library. iPods took off because even though it was time consuming, I was able to make listening to my music easier by having my entire CD library in my pocket (by importing my CD to iTunes). Without an EASY WAY (I know of MacTheRipper and Handbrake and the like, but the general public doesn't) to convert a DVD library to digital files, the general public won't make the jump.
2. They need to make some kind of harmonious system with LOTS of storage space available to the average user. Even if there is a way to save my DVD library to digital, I need a huge space to store it (I have a LOT of DVDs), and saving all these movies on an external plugged into my computer that then streams to my Apple TV is less than optimal and would probably be laggy. At the same time, if I hold my movie library on my Apple TV it should have the functionality to bring those files to my laptop when needed, though if the iPod and music is any indication, it won't do that. (and yes I know there are hacks to plug in extra storage to the Apple TV).
3. They HAVE to sign the major film companies to contracts that would include an iTunes version on EVERY DVD. Fox is nice, but this is an effective solution to not being able to import a DVD. If every DVD I buy from now on has a digital version too, from here on it makes it easy to compile a digital library.
4. (this may be answered though I'm unclear) ALL major film companies need to sell their stuff on iTunes. I know all the majors are on board for rentals, but I didn't know from reading my live updates if that meant they were all going to SELL their movies as well... I kind of assumed it was a given, but it is possible that they only will allow rentals.

If Apple can do these things (and really all are do-able except for an easy way to import the DVD library), the Apple TV will be HUGE. It will take off and be the standard for digital movies, like the iPod is for music... but ONLY when they clear these hurdles will it be that big. My guess is they know that too, and that's why they classify this as a hobby until they can come up with the solution.

...and further down the road HD comes into play. The general public is still just getting into HD and while HDTV is pretty well along, Blu-Ray and HD-DVD are still a mystery to most of the general public. iTunes will need to find the answer to this question down the road, but getting a replacement for the DVD is big enough for right now.

[Jeff @ Jan 15th 2008 1:45PM]

This is going nowhere.

a) Smaller library than Netflix (by about 6 times) - I realize that'll grow, but then so will Netflix'.

b) Ridiculous prices - what is this, 1989? Who pays $4 to rent a single movie anymore?

c) 24 hour window - Jesus, even Blockbuster gave you three days before they started charging late fees!

I'm not saying *nobody* will use this, but then I didn't say *nobody* would buy the Apple TV either, and Steve himself just basically admitted that was a failure. By both Apple's and the industry's standards, this will be a failure too.

btw why is it that at EVERY MacWorld, Engadget goes to pieces? Have we not learned how to get it together yet, guys? It's been like 3 years running now.

[Jake @ Jan 15th 2008 1:54PM]

Jeff: the 24 hour window only applies once you start watching. You have 30 days from the time of the download to start watching; once you start, you have 24 hours to finish. Its the exact same rule that Amazon has for Unbox rentals. That's far from unreasonable, and MUCH better than 3 days at Blockbuster.

[Jeff @ Jan 15th 2008 2:03PM]

How is that "far from unreasonable"? I see it's worked out real well for Amazon...

Say I start watching a movie on Friday night and my wife falls asleep in the middle of it. The next 2 days, she has to work. Welp! Too bad. That's $4 down the drain.

With Netflix (either the DVD *or* their streaming service), you just start over whenever the hell you want, no additional charge. *That's* reasonable.

[Jake @ Jan 15th 2008 2:56PM]

@ Jeff:

Actually, Amazon's Unbox service has been doing pretty darn well (thanks in part to its partnership with Tivo), and the selection of movies and shows easily exceeds Apple's.

And its "far from unreasonable" because the terms meet the needs of 95+% of consumers. Sorry if you're in the other 5%, but that doesn't make the terms "unreasonable" from an objective perspective -- it just means that its unreasonable for you.

Finally, I never said that this was better than Netflix. Re-read. I love Netflix and would sooner give up movies than be stuck with an Apple TV to get them. I only CORRECTED your clearly incorrect characterization of the rental periods; I expressed no preference for services. But for the record: I prefer Netflix for most movie viewing, with Amazon filling in (with DVD-quality pictuer and 5.1 audio on most downloads already) for filling in the occasional gap.

[Jake @ Jan 15th 2008 2:03PM]

Okay, here's something I'm unclear on. Jobs didn't mention HD rentals when he was talking about iTunes and the movie rental service. He only mentioned them when he was talking about the AppleTV. Does that mean that you can only do HD rentals via the ATV? Because that would be utterly awful.

[Tom B @ Jan 15th 2008 5:13PM]

HD is only through the AppleTV.

[Wildness @ Jan 15th 2008 2:04PM]

And how exactly is this better than Netflix? Who pays that much to rent a movie anymore??? Netflix works because so many people don't want to pay that much anymore! And, now I get unlimited online viewing on Netflix.

I love iTunes... I live streaming my music to my stereo with the Airport Express... But, I don't need iTunes to do everything for me... what's next? Is it going to wipe my...

[Shahryar @ Jan 15th 2008 2:14PM]

Well I'm excited about this. I don't watch movies enough to justify renting using Netflix or BlockBuster's monthly program. And I like to watch HD so I hate going to the further Blockbuster that let's you rent Blu-Ray, only to find out they're usually out of stock on the good stuff.

So now I can rent and watch HD from my laptop at home.

Me and my wife both have 15" MBP's (I have the 2.2ghz SR, she has the 2.16ghz C2D). We got our DVI-to-HDMI cable to connect our laptop to our Samsung 1080p 4095 LCD TV. And I recently bought the Toslink to Mini M/M OD:5.0mm, Molded Type - 6ft [T3] (#1557) from Monoprice for $3 to connect our laptop to our Onkyo SR-605 7.1 receiver for Surround.

I don't think we'll do this often enough to get a dedicated computer or Apple TV for our Home Theater setup though.

[Jake @ Jan 15th 2008 2:50PM]

Um, you don't watch enough movies to justify spending $10 on Netflix (1 at a time unlimited plan), but you will drop the equivalent of 2 years worth of that subscription just to get the Apple TV? And that's before CONTENT.

[Shahryar @ Jan 15th 2008 2:56PM]

wait.. I'm not getting an Apple TV. I'm talking about renting and watching HD movies from my MacBook Pro - and hooking that up to my TV.

[Jake @ Jan 15th 2008 2:58PM]

ix-nay on the buying an Apple TV. Didn't read the last sentence of your post before I responded!

[Shahryar @ Jan 15th 2008 3:03PM]

NP Jake... but turns out I was wrong too . HD Rentals are exclusively for the Apple TV according to this:

http://www.engadget.com/2008/01/15/more-details-on-apples-itunes-movie-hd-rentals/

I was thinking I could rent from my MBP (which can handle HD). Not sure why I can't. This sucks.

[Ty @ Jan 16th 2008 12:37PM]

It's because of iTunes lackluster video support.

[MTC73 @ Jan 15th 2008 2:40PM]

So I can watch 20+ movies a month on Netflix for $14.99 or pay $4 a movie via iTunes? Suuper!

And if I start a movie I have to finish it within 24 hours? That's nice and inconvenient!

It could probably still be a good niche idea, for those Apple die hards and people who care about transferring a movie to your 3 inch cell phone screen. Ooo! I can haz Spiderman 4 in HD on my cellz?

[Jughead @ Jan 15th 2008 2:44PM]

Redbox??? unless you don't leave your house you have to pass at least one to or from work or school and it's only $1 and there are a bunch of free 1 day codes so you really never have to pay for a new release.

[c.Lake @ Jan 15th 2008 2:55PM]

24 hours? What The HELL! Don't hurt yourselves by letting us have it for a week or anything. You're only competing with Netflex, and Netflex let's me keep it for as long as I want -- at the same price. Two days isn't that long a wait, especially if you "know" how to set-up your list to have video arrive just before the weekend.

I'm fine with the price, even $5 bucks for HD (Not really going to use it that much), but make it a week -- you have a deal. Anything less, is a rip-off.

[Jake @ Jan 15th 2008 3:01PM]

Comparing the Apple.com pages for the AppleTV and the new iTunes release ("with movie rentals"), it seems pretty clear that HD rentals are for the AppleTV only. There is no mention of HD at all on the iTunes page.

Can anyone who has dl'd the new iTunes version confirm? I'm at work with no iTunes access...

[Anton @ Jan 15th 2008 3:06PM]

No Blu-ray or HD-DVD rentals...Idk, sounds like Netflix is still a win, heck I guess you can even say...more for your money.

[jtwurth @ Jan 15th 2008 3:42PM]

I'd say that for watching content at home on the TV the 24 hour period is plenty for most people. I know there are instances where this wouldn't work and that sucks but they had to set some conditions and these are they. Where do see it being a bigger problem for the user is if you're a commuter or do a lot of travel for work. Say you want to rent a couple of movies for a trip you're taking and you put them on your iPhone. You watch some of a movie on the plane or at the airport but then you get your destination before you're finished and have to get right to work. Now you're screwed. Just saying that from my perspective the 24 hour limit will bite the user more often if they like to have movies 'on-the-go'

[Galley @ Jan 15th 2008 3:28PM]

FWIW, Refurbished Apple TV prices have dropped as well.
40GB: $179.00
160GB: $279.00

[George @ Jan 15th 2008 3:33PM]

I can do this all from my couch and not have to get up to mail anything back. I also don't have to deal with netflix delaying my shipments because they don't want me to watch too many movies on my 3 at a time plan. This is super convienient for me. Somtimes I watch one movie per month, but I still pay 19.99+ regardless. With itunes, i pay for what I watch. Screw Netflix

[Wildness @ Jan 15th 2008 3:44PM]

Doesn't sound like a "screw" Netflix situation, but instead that Apple has found there true niche market with the people who only watch a movie or two a month, can afford the AppleTV for the experience, and don't want to go to Blockbuster to only find 10 copies of Veggie Tales to rent.

[George @ Jan 16th 2008 6:50AM]

I think as the catalog grows, it's screw netflix. This service will evolve just like other services to give the features that people want. If people don't buy it, the company providing the service will ask users what they want and slowly change it to make profits. There is nothing easier than this type of renting. It is the future, NOW. No need for Blu ray or HDDVD. Netflix, blockbuster, xbox live all sucked when they were introduced. They evolved so that they could make maximum gains.

[Russ @ Jan 15th 2008 4:40PM]

I think the reason for limiting HD rentals to AppleTV is the dreaded piracy factor: AppleTV features an HDMI interface to the TV where as a PC, e.g. MacBook or iMac, just uses a DVI connector. DVI allows the screen data to be intercepted and recorded allowing the HD content to be copied (not to mention apps that can "record" on-screen video on a computer). HDMI encrypts the content so that it can't be copied. So this limitation is all about piracy. I'd like to find out if the DVD-quality rentals are true anamorphic DVD quality (720x480) and if they have 5.1 sound.

[Phil J Leitch @ Jan 15th 2008 6:30PM]

For readers of Engadget this probably is as simple as AppleTV vs. Netflix, but the majority of the American public does not use Netflix. I know a lot of people that love movies but few of them use Netflix or even know about it (how that is possible I don't know).

I have both and am pretty sure I will continue to use both. We have the 4-at-a-time plan and some months we will watch quite a few. Other months we might not even watch 4, it depends. But the convenience of the AppleTV rentals appeals to me (as does Netflix streaming and Amazon Unbox which I also use).

Overall I think it is a win for downloadable rentals for consumers and another little notch in the Blu-Ray stick. I still think downloads will be the long term winner. I have no plan to ever purchase a Blu-Ray player unless the price is below $100 and there are more than 500 or so mostly recent releases of crappy blockbusters.

I really don't see the appeal right now for hi-def based on the available content. Oh well, what do I know.

[harsaphes @ Jan 15th 2008 7:24PM]

cant wait...I have my PC connected to my Pionner 50 inch, so have been using Itunes for tv show downloads and now my movie rentals...sweet.

[John @ Jan 15th 2008 8:20PM]

Me live in Europe. Me feel neglected [insert sad Mac-icon here..]

[Abominable @ Jan 16th 2008 12:35AM]

Yea in canada its the same... no movies...

Screw you copyright laws. *shakes fist angrily*

( I'm sure if copyright laws are not the reason, someone will flame me for saying that^, but I need something to blame and it sure isn't going to be apple =P )

[Dan @ Jan 15th 2008 9:36PM]

Now can we just get the fiber please! That'd make it very competetive with VOD.

[liin @ Jan 15th 2008 11:01PM]

"new feature will launch today"

Well, today is almost over, my 7.6 on Leopard still isn't showing any rent button.

[nitetripp @ Jan 15th 2008 11:26PM]

rentals are NOT up yet

[Balthazar2k4 @ Jan 16th 2008 3:08AM]

I see that the rental system is FINALLY working on iTunes. What shocked me is that every movie (or at least every movie I looked at) was only available in "Fullscreen". I am sorry, but if that is the plan than they can forget it. I haven't watched a fullscreen movie (voluntarily) in more than 8 years.... I am not about to start now and pay a steep price to do it. What year is this again?

[Andrew Gutierrez @ Jan 16th 2008 4:14PM]

what the hell, which movies will be available? right now i only see ratatouille with the rent button. where is the list when you need it...

[georgex @ Jan 17th 2008 1:38AM]

anyone has tried outside u.s?

[Rhane @ Jan 30th 2008 9:46AM]

I just used the service and we only watched an hour the first night. The next night just before the 24 hour period expired we started watching the second half of the movie and our guests were being loud so I reverse back 2 mins. As soon as I did this it blanked all the video and wouldn't let us finish watching it. 24 hours is not enough time. Oh and btw you can't change the system time to watch it over again, they already fixed that bug. I tried that after I read someones post to finish seeing the movie and it did no good.

[Andy @ Feb 14th 2008 5:54AM]

I have Apple TV. I have liked it a lot. I go the new down load and noticed the changes. I can only do HD movies on the Apple TV (the order has to go thru apple tv). Also, I noticed that there are no more puchases of movies. So I can "rent" a HD movie for $4.99 and watch it as many times as I want within a 24 hour period over the next month, or I get a $4.99 Netflix account and Netflix can send me the disk and I can watch it over and over and over during that same 30 period. No 24 hour wait period. I had bought movies before to put on my I-pod because I travel alot. Now, I can only rent. I think I have got my last netflix movie. Too bad. I like a few movies to take with me.