Amazon.com, Inc. (NASDAQ:AMZN) is reportedly in talks with joining UltraViolet for its digital movie purchases. UltraViolet was the brain child of studio owners who wanted to keep a check on Apple Inc. (NASDAQ:AAPL)’s monopoly in the digital media market. It is a kind of digital shelf for movies where customers can list their digital movie collection just as they would do with their physical DVDs and Blu-Rays.
Though handicapped with a snail paced growth rate, UltraViolet managed to bring Apple Inc. (NASDAQ:AAPL)’s online movie sales and rentals to 58% in 2013 compared to 75% five years ago. With Amazon’s backing, UltraViolet could go places. Amazon.com, Inc. (NASDAQ:AMZN) is currently Apple’s biggest rival in the segment and if the online retailer’s talks with big movie houses such as Time Warner Inc (NYSE:TWX) Pictures go through, UltraViolet might finally have a chance.
Complex process hinders UltraViolet’s adoption rate
Customers who buy physical copies of movies from retailers that supported UltraViolet, such as Sony Corp (ADR) (NYSE:SNE) Pictures Store, Paramount Movies and Flixster, will be given a code along with their DVD. By redeeming this code, users can access the digital version of the movie using UltraViolet rather than ripping the physical copy.
Once placed in their UltraViolet account, these movies can be viewed across multiple devices such as televisions, Android and iOS devices, and tablets. Users can also share their UltraViolet movie collection with up to five people. Amazon.com, Inc. (NASDAQ:AMZN) had notably stayed out of UltraViolet supported retailers until now.
iTunes only slightly affected
Movie studios that wanted to prevent iTunes from taking over the digital movie industry as it had done earlier with the music industry created UltraViolet by uniting smaller competitors. Despite all the promised perks, UltraViolet never really took off.
The complex setup process employed by UltraViolet which took too much time has been cited as the reason for consumers’ reluctance to shift to it. If the Amazon.com, Inc. (NASDAQ:AMZN) deal goes through, users can look forward to a hassle free process of organizing their digital library.
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