HD For Indies

OK, marketing BS warning - this is a press release from a company, not a "for real" article from a magazine (even though the two categories are awfully interchangeable these days):

DVD STATION TO PROVIDE HI-DEF AND FEATURE FILMS FOR VIDEO IPOD AT ITS RETAIL KIOSKS
"2005 Video Retailer of the Year" to offer video downloads for the iPod at its stores

San Francisco, CA – October 13, 2005 — Following Steve Jobs' introduction of the video iPod, DVD Station announces that it has encoded and is making available its licensed hi-def and feature film programming for the new iPod. Through its next-generation edge-networked kiosks, customers will be able to download hi-def feature length films directly to their iPod in less than 90 seconds (a process that would take 12+ hours via broadband DSL). DVD Station, recently recognized as Retailer of the Year award by the International Trade Association for the $24 billion home entertainment industry, VSDA, is known for the innovation it has brought to the category . From drive-thru and cafe video stores, to the digital download of films at retail, the company is re-inventing the retail category. "They represent the very best in the home entertainment industry," said VSDA President Bo Andersen.

DVD Station's CEO, Tim Hogan, stated about Job's announcement, "Apple's introduction of the video iPod makes it clear that the traditional distribution channels for filmed entertainment will be dramatically transformed. Widespread adoption of personal media players coupled with on-demand entertainment changes everything."

DVD Station's interactive retail solution allows a retailer to provide the inventory selection of a 6,000 ft. sq. video store in as little as 40 ft. sq. of retail space. Customers browse for product on interactive touch screens with the product inventoried in media cabinets at a service counter. The stores offer a true Bricks & Clicks experience by bringing powerful eCommerce tools to a traditional retail environment and lever aging the internet to offer customers unparalleled service in digital entertainment retail.

In support of the it's download initiative, the company has built a national edge network of multi-terabyte media servers to allow for very fast downloads of high bit-rate hi-def content. Whereas an asynchronous download might take 10 to 20 hours via the web, DVD Station can download the same content to its customers in less than 2 minutes. The company is also utilizing its proprietary merchandising algorithms to allow customers to receive recommendations, watch trailers, use powerful search tools, and read movie reviews on movie and game titles before making a selection. "Since we provide thousands of titles on-demand, it is imperative that we offer our customers sophisticated filtering tools to enable them to find content they are interested in," added company software engineer Charandeep Tatlah.

When asked about why DVD Station was offering hi-def as well as lower definition programming at it's kiosks, company CEO, Hogan, offered, "With the iPod's video-out capability, we believe that they are also bringing downloadable entertainment to the digital living room. This is, by an order of magnitude, a vastly larger market opportunity that will have more profound impacts on the industry supply chain. It's also an arena we are committed to playing in."


Mike comments: sounds very interesting, but limiting to iPods is definitely a market limitation, and a large one. How will the DRM work? How will movies be watched once at home? It is a good model for them to sell, but how good is it for us to buy?