Now that the Xbox 360 Video Marketplace has been live for a little over two weeks, I’d like to share a few thoughts. The Video Marketplace provides Xbox 360 owners the ability to download television show and movies — some in high definition. Keep in mind, the November 7th announcement encouraged me to get off the fence and pick up a 360 (at half price). While Microsoft did beat TiVo, Apple, Sony, etc in providing direct downloads to a TV-attached box, these video rentals definitely originate from a first generation download service.
Organization
My first issue is organization: There has got to be a better way to lay out and navigate the video catalog. Right now it’s fairly manageable but as the content selection (theoretically, hopefully) grows it will become unwieldy. In fact, maybe we should talk about cleaning up the 360 dashboard in general. There’s a decent amount of overlap/duplicity and some items aren’t always where or what I’d expect. Generally I find the Dashboard it to be an attractive and speedy interface, but there is always room for improvement. Microsoft can start by reducing or removing the ads, which are a distraction and an eyesore.
Content
My second issue is actually more pressing than the first. While the interface can be overcome, the lack of video selections cannot. (It’s all about the content!) There seem to be a decent amount of television shows, but why anyone would buy them regularly I have no idea. I can see grabbing a show now and then when you forget to record or watch an episode, but routine purchases just don’t compute for me. Those high-tech enough to own an Xbox 360 and use video downloads are likely they have some sort of DVR in the house. Not to mention Microsoft touts the ability of the 360 to act as a media extender for Windows MCE… which of course has DVR capabilities. So my content beef is with the movie selection. I realize the service is only a few weeks old, so I’m not expecting additional studio partners (currently just Paramount and the Warners), but I am expecting additional movies. Since launch, as far as I can tell (and I’ve been checking daily) NO new movies have been added. Perhaps this was a blunder on Microsoft’s part and they should have trickled out several flicks a week (instead of everything at launch) until more content was lined up. Or perhaps their partners don’t have faith in the delivery method yet. Regardless, as a consumer, I want more choices — or at least that illusion. Otherwise, folks will stop checking the Video Marketplace.
Microsoft Points
My third issue is with pricing. My issue isn’t with the cost of a video rental, but rather with Microsoft Points.
High-definition TV shows will be 240 Microsoft Points per episode, and standard-definition TV shows will be 160 Microsoft Points per episode. New release movies in high definition will be 480 Microsoft Points, and standard-definition new release movies will be 320 Microsoft Points each. Classic feature films in high definition will be 360 Microsoft Points, and standard definition will be 240 Microsoft Points.
I can live with Microsoft using virtual money for accounting purposes, but it would be simpler for consumers to match 1 point to 1 cent, rather than the current $1.25 = 100 points. Of course, by utilizing a debit system (with points valued at less than a cent each), Microsoft intends for us to lose track of how much money we’re spending like ATMs in a Vegas casino. Also there’s the small matter of having extra, unspent points dollars that Microsoft collects interest off of or which may never be redeemed. Billing at the time of purchase for the exact dollar amount of a purchase – be it game, avatar, show, or movie – is a preferable, simple and fair system. If they must stick with their points system (which they are), why not give discounts on bulk purchases? This is a business and Microsoft loses money on each hardware console… Their Points give them a leg up in recouping those sunk expenses.
Bandwidth
Downloads requiring 46 hours to complete are out of the question. I don’t think this is typical… perhaps part initial roll-out kinks, part initial early adopter demand. However, there’s no question we need quicker gratification — especially if Microsot intends to compete with real-time VOD streaming from cable companies. They seem to have done a decent job preserving HD audio and video quality while getting file sizes down and downloads seem to be quicker now than at launch. But it’s not enough. And I’m not sure Microsoft alone has the answer. The last mile needs an upgrade, or at least mine does. Typical DSL is fine for web surfing and the like, but to handle Xbox video downloads, VoIP, TiVoCast, iTVN, Movielink, iTunes, Slingbox, etc (yes, I really do have/use all these things) I need a fatter pipe. Therefore I – and other Internet media hogs like me – probably need to upgrade to a higher speed broadband service such as fiber optic or a high-bandwidth cable plan. Will it make a difference or are downloads throttled in some way? One way to find out…
Superman Returns HD
My biggest issue (ha!) is where is Superman Returns in HD? Superman was prominently mentioned in Microsoft’s Video Marketplace press release, yet the DVD is out and the download isn’t. What gives? Honestly, I can’t pin this one on Microsoft. The archaic movie studios are having a hard time with the new reality. Releasing a video download the same date they release a DVD will not impact DVD sales! How do I know? I haven’t bought Superman Returns on DVD. I will wait for the download. Or maybe I’ll pick up the Xbox 360 HD-DVD drive and get it from Netflix. By waiting, they actually lose momentum and stand to make less since more people will Netflix (or visit Blockbuster) to get the video. So when will Superman Returns HD arrive? Movielink has it for sale ($19.99) now via download, and indicates digital rentals will be available 12/28/06. Can I wait that long?
Overall I think Microsoft is off to a good start, though if some of these points can be addressed I think they’ll have a more compelling (and more lucrative) service on their hands. Better hurry, though, Apple’s iTV is hot on their heels… and despite Thomas Hawk’s assumption, I guarantee they’ll provide HD movies in 2007.
I don’t this will ever compete with the cable/sat co’s on the whole content on demand business model. I can see this portion of the Xbox360 services going tits up within a few months when someone hacks the encryption or mods the box to get the HD content outside of the terms.
Kevin C. Tofel doesn’t say that the download took 46 hours to complete – what’s he’s saying is that when he checked a day or two after beginning the download it was clear that the 14-day clock started running as soon as the download started. You can’t tell from the blog post whether the download took minutes or days (because as the author states, he doesn’t know).
Sorry. Two days. My bad.
Pete: Kevin had to restart the stalled download multiple times over nearly two days to get the movie, though it’s true the actual time is less than 46 hours. Though he couldn’t watch it the night before – so essentially it’s a lost day. (We’ve had a few email exchanges about this.)
There are quite a few discussions on Day 1 (err, or more) downloads indicating insane waits. Anyway you slice it a HD downloads in the 6GB range are going to take time, lots of time.
For more fun with math, yesterday Kevin timed a 1GB standard def flick (The Lake House) at something less than 3.5 hours. Let’s play it safe and say it took 3 hours, or even 2. At that rate 6GB HD movie will take 12-18 hours. Meaning if you’re browsing the Video Marketplace and see something you want to watch, chances are your purchase will be for tomorrow not today. Too slow!
I downloaded HD Poseidon (5 G) in about 6 hours total. I started around 5 at night and it said I could start watching around 9 or so. The download did not finish until around 11.
This was on Cox usually between 1 and 3 MBs and a Wireless B router with WET11 connected to the xbox. Oh and with someone else streaming video on another computer starting around 7 pm.
Nice! Reason enough to upgrade to cable as I suspected. Kevin and I both have DSL. I have a Verizon affiliate, not sure who he has.
Hey TiVo, Its Not TV Until Its On TV. Well, looks like its on TV. ;)
Your bandwidth upgrade is obvious. I can’t imagine MSFT wouldn’t scale their bandwidth to make this useable.
So you can start watching before the DL finishes??? Here that TiVoCast???
Everyone is going to have Navigation (Organization) problems. But XBox/PC has the muscle to handle an advanced interface, etc. whereas TiVo does not. XBox will be able to do far more detailed graphics on the TV screen than TiVo. Netflix has a good navigation interface; you’ll never see anything like that on TiVo, but you might see it on an Xbox.
Points stink.
Only selling TV shows is ridiculous. Renting is far more reasonable. Only renting movies is ridiculous… Few TV shows are worth watching again, whereas many fine movies are worth having.
HDTiVo: Unless you can permanently archive the movies somewhere, selling them from the 360 doesn’t make much sense. Also I’d rather pay 6 bucks a rental than 20 dollars to own. Chances are I won’t be watching a movie more than 3 times in a 2 year period (Office Space may be an exception) — though folks with kids are in a different boat.
Dave:
Suppose the movies could be accessed by any XBox you own either from the MSFT server or stored on your PC with backup on the Net? I don’t know the exact details of what they are doing.
Prices will have to be reasonable for what rights you get – own/rent/xfer to DVD/xfer to portable/etc. The thing is everyone will have a different set of preferences and going half way with rent only or own only is not optimal.
Do you really want a 24hr rental where you pay twice if you don’t finish the movie that night, or a 28hr rental, or a Netflix inventory/swap method?
There are so many potential alternatives.
Living in Canada I can’t test the new service. I’ve been eagerly awaiting this type of iVOD service for the better part of a decade – whether on Xbox, TiVo, PS3, whatever.
But, I also do not like the points system. I’ve owned Xbox Live from the first day it launched and moved to the Xbox 360 when it launched. I would like to purchase the mini-games and other downloadables through marketplace but have held off because the Microsoft Points system. I know its to save credit card commissions. But, hey, I’m the consumer and the system pisses me off.
Just charge my credit card each time I buy something and I’d be downloading things regularly – as it is, I never do and intended never to … but downloadable movies will put me in a canundrum. I’ll have to choose between principle (not supporting a transaction system I don’t like (no horse armour here – EVER) or my long held desire to purchasing dowloadable movies (when they arrive in Canada) – something I’ve wanted and lobbied for, for a decade.
Argh! Microsoft – don’t make me choose any more. We’re adults, treat us like adults, charge us real money – not these silly points!
…Dale
One of the more interesting things is the implied cost of bandwidth.
MSFT is taking only $1.00 for several extra GBs downloaded in an HD file. That dollar also covers other costs related to HD content.
So MSFT is probably asking less than $.20 per GB.
I downloaded Poseidon to give it a go. The quality is just not there, we need 1080i for that price. It’s blu-rays from Netflix for the forseeable future.
Fat pipe = RCN 10 Mbps.
Cheaper than Comcast and faster.
Hi, I saw this post over at HDBeat.com
Ill try to make sure that the Xbox team sees this, as they are constantly taking feedback to improve the Xbox360.
As for the download speeds, my understanding is that they have done work, and are doing better. They will always do work to improve, the Ops team thrives to be very good with that stuff.
In regards to Superman Returns in HD, the marketplace will have it on 12/28 as well, as it is a distribution decision (not the stores that distribute it).
You can also always drop by the Xbox.com forums, specifically the Xbox Live Video Marketplace Forums, as there are a couple of team members that float around the forums, answer questions, report new content up on the system, and take feedback. You can go here for it:
http://forums.xbox.com/600/ShowForum.aspx
If you have any questions, you can always shoot me an email, and Ill try to get them answered, or you can head to the Xbox.com forums (link above).
-Matt (Xbox MVP)
In response to Dale- how much do you pay for a 1600 Microsoft points card in Canada? They are $20 US, and I imagine one of the reasons to do the “points” system is to have consistant pricing over a global marketplace when using MS points compared to local curency. So in Canada, Japan, Europe, or the US if it’s 800 MS points it’s 800 points whether that cost is $10 US, or whatever the equiliviant in Canadian, Euro’s or Yen. All that being said, I’d still rather have a direct Credit Card (or Debit/Check card) transaction myself, but I see and understand some more of MS and the other content providers thinking.
PS- there was a release of new content Yesterday 12/12 on the marketplace. So maybe weekly releases have started after the first 2 weeks?
=MATT=
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