Forecasts for UltraViolet to reach 65 million active...
Forecasts for UltraViolet to reach 65 million active users by 2018 are jeopardized by key players not supporting the ecosystem, said a report by ABI Research. “After a shaky start, UltraViolet is starting to pick up steam,” said analyst Michael…
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Inouye. Key players Apple, Disney and Amazon have yet to embrace the digital content locker format backed by Sony, Warner Bros., Paramount, RIAA, Best Buy, Walmart and numerous hardware companies, said the industry research firm. Apple already has a strong ecosystem and Amazon is trying to replicate Apple’s success with its own, Inouye said, giving neither company incentive to make its content available elsewhere. If the big players don’t end up joining, that would “diminish UltraViolet’s value,” Inouye told us. It could also further “fragment” the market, already chopped up into iTunes, Microsoft, Netflix and Amazon ecosystems, he said. The UltraViolet service has been referred to as “clunky” from a consumer point of view, especially compared with straight streaming services that are more streamlined, but Inouye said UltraViolet has enough studio and retail support to be successful. “As long as consumers continue to buy Blu-rays, which they seem to be doing, it seems like a pretty good transition to UltraViolet,” he said. Long-term continuity of a consumer’s digital library is another key uncertainty that could “diminish UV’s appeal,” said ABI. Consumers are looking for access on all their devices as well as assurances they will not be forced to repurchase digital rights to content they thought they already owned, said analyst Sam Rosen. The shift is on from physical to electronic media, he said, but “consumers continue to opt for subscription services and premium rentals rather than purchases,” he said. For UltraViolet to be successful, video transactions have to be as simple to access and store as music is in the digital realm, he said. “If competing video libraries gain consumers’ trust without joining the UltraViolet ecosystem, many of the components of UltraViolet will help facilitate B2B commerce but will fail from a consumer perspective.” ABI estimated UltraViolet’s active user account base is 6 million-8 million and predicts a base of 108 million by 2018, if key players support the platform.