Posted on January 21, 2008 at 12:00 am

Compared: iTunes & Netflix

Apple is going full steam ahead with the latest updates to both iTunes and the Apple TV, which now include the ability to rent and download movies from the online store — there are even high-def versions available for the Apple TV. Movie fans may already be in another movie rental service, likely that being Netflix, which is the most popular choice. So does iTunes have an ace up its sleeve, thus guaranteeing an instant success? Let’s take a look at how iTunes compares with Netflix.

Prices.
iTunes offers standard-def movies at $2.99 for older titles, and $3.99 for newer releases. If you want the high-def versions for your Apple TV, it’ll be $3.99 and $4.99, respectively. Now, Netflix offers unlimited movie rentals (both mailed to you and online), with monthly subscriptions starting at $8.99 (although there’s a bare-bones subscription which only allows two mailed movies per month at $4.99).

Advantage: Netflix, because a monthly fee may end up being lower — that is, if you rent more than 3 movies a month.

Formats/Compatibility.
iTunes offers all movies DRM’d like almost everything else from the store, thereby limiting the viewing to an authorized computer, and other compatible Apple devices like the iPhone and the latest iPods (including the classic, newer nano, and touch — but none of the earlier models). The movie file, itself, will self-destruct in 30 days after being downloaded, or 24 hours after you’ve hit play. The same applies for the high-def movies inside the Apple TV. Netflix, in contrast, offers regular DVDs, and the newer high-def disc formats: HD DVD and Blu-ray. Unfortunately, all online movies from Netflix will only play in Windows.

Advantage: Netflix, because you have 3 movie formats to choose from — or 4, in case your Mac is Boot Camp’d for viewing the online movies.

Experience.
iTunes offers immediate access to all of its movies (granted that you’ve got a decent internet connection to stream it), yet puts a time constraint for viewing it. Netflix mails you the movies, which arrive, approximately, in one business day (along with an envelope to mail it back). The trick to it is that the movie shouldn’t have a waiting list for Netflix to mail it instantly. But once you have it, you’re allowed to keep the disc as long as you want — if you keep paying the monthly fee.

Advantage: Netflix, because the waiting list is normally limited to the hottest new releases. And when such movies become available to be sent to you, it is normally before (iTunes’) 30 days.

It’s all about the movies.
iTunes just launched its rental service, which means that there is no mountain-high list of movies to choose from — although all the major movie studios are on board. The one big thing that’s going to stop iTunes from truly shining is the ridiculous 30-day waiting period from the DVD’s release until the movie appears in iTunes. What was Apple thinking? Maybe it’s a way of appeasing the big studios so that the DVD sales don’t suffer. Netflix, as imagined, has a giant selection to choose from, with more movies being added as soon as they’re released — and even the high-def formats are normally added at the same time as the DVD release. Although, the online movie catalog from Netflix doesn’t have that much variety, it does contain some titles that will entertain you (Pan’s Labyrinth, anyone?).

Advantage: Netflix, obviously. Now, if Apple could get rid of the 30-day waiting for new titles, it’d be a tie.

Conclusions.
Netflix has spoiled many movie fans. It is clearly the best choice because of… everything, really. Apple, on the other hand, may not please the demanding movie fan, but causal viewers will be happy that rentals are finally available in iTunes.

Another take.
Apple already has a big market niche with iTunes, and the constant addition of new features has helped it remain so. While movie fans that are already accustomed to Netflix will walk away disappointed, iTunes’ attempt at movie rentals is a good one, nonetheless. For those who already own an Apple TV (and none of the HD disc formats), you will be happy with the high-def rentals. Apple’s iTunes strategy would have been near perfection for what it is, if it weren’t because of the 30-day lag of new releases. Still, iTunes is a decent rental service, and is easily recommendable for a certain audience.

Note: the Apple TV rentals are not available yet as of publication date, but Apple is supposed to add them soon via a downloadable update.

2 Responses to “Compared: iTunes & Netflix”

  1. Galley on January 21st, 2008 at 7:23 am says:

    I have tried both Netflix and Blockbuster Online. Nearly every one of their Blu-ray Disc titles have a “very long wait”. Some think it may be a conspiracy by the movie studios to get us to buy high-profit HD movies.

  2. Frank on January 21st, 2008 at 8:40 am says:

    I’m currently on Netflix, and so far, I’ve only had one Blu-ray title on a very long wait. But yes, you may be right — I read that same conspiracy theory on a well-known tech blog some days ago. That also probably explains iTunes’ 30-day wait for new titles.

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