Microsoft Xbox 360 video downloads growing every month

Posted Jul 6th 2007 11:51AM by Brian White
Filed under: Products and Services, Consumer Experience, Competitive Strategy, Microsoft (MSFT)

When Apple Inc.(NASDAQ: AAPL) introduced the Apple TV product earlier this year, fans came out of the woodwork on how this system would finally bridge the divide between PC content and all the viewing and listening greatness on newer flat-panel televisions and surround sound systems There were other choices, but they were largely considered inelegant and not easy to use. Apple, by reputation alone, always makes things that are easy to use, right?

Although the masters of marketing in Cupertino steal the thunder from most other companies, there are success stories outside of that universe. One appears to be from Microsoft (NASDAQ: MSFT), which has stated that downloads of video content (movies) from its Xbox 360 video on-demand service are now growing by double-digits every month. That is growth, folks.

The one minor thorn is that some customers are complaining (naturally) that high-definition downloads are taking hours to complete, which is more of a broadband internet problem than a Microsoft problem, I would surmise. Still, the growth rate of video on-demand content for the Xbox 360 platform is very impressive thus far, so perhaps Microsoft's strategy of making the Xbox 360 a central, living-room entertainment hub may work after all. That is, as long as those internet pipes get faster and faster. Right now, consumer internet, for the most part, is way too slow to start pushing hi-def content to millions of customers.

Tags: AAPL, Apple, Apple inc., AppleInc., AppleTV, Microsoft, MSFT, Xbox 360, Xbox video on demand, Xbox360, XboxVideoOnDemand

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Reader Comments (Page 1 of 1)

7-06-2007 @ 12:44PM

SAGExSDX said...

the cool thing about the Xbox Live Video Marketplace - one that will help quell complaints of long download times - is that you don't need to download the whole video in order to start watching it.

after you start downloading the video, when, I'm assuming, enough of it has been downloaded and the average rate of the download has been calculated, you'll get a notification that the movie is ready to be played.

For me, this means about a minute or two of "downtime" before watching the movie which is REALLY nice considering it takes about that much time to start up a DVD and get past the opening trailers and menus and such. Video Marketplace, IMHO, is DVD/HD video over the internet done right.

7-06-2007 @ 2:22PM

Cakelly said...

Is MSFT counting the free download they were giving away like the Autin Powers movie? I guess it's no biggie for Microsoft to give away freebies plus the $1B charge to repair the bad machines since they have a lot of money. I just don't think Microsoft can afford any more businesses like the Xbox, Zune, or Windows Mobile. If you are a MS shareholder, you should demand results instead of promises and broken promises.

No, I don't own MSFT or AAPL shares. (But I do own NTDOY. lol)

7-06-2007 @ 2:41PM

George L Patrick Jr said...

I believe Xbox 360 downloads pose a very bright nicht for future DVD use. What would the impact be viewed by NetFlix? What would the Xbox cost to purchase or lease? What would the per month charge be? All these options must be of future interest to the consumer.

7-06-2007 @ 2:51PM