Yesterday, Apple announced that shortly they will start selling HD quality movies for download from the iTunes store. While it sounds like a great idea, the business model is completely flawed and clearly the movie studios are living in a bubble. As I have mentioned in the past, how on earth can the studios continue to charge more for a digital download than a physical DVD?
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With digital downloads, studios don't have to pay to produce the DVD or any of the packaging. The bandwidth cost to download a two hour movie costs pennies and online promotion of digital content is a lot less expensive than other forms of marketing. Yet even with all those savings, the studios charge more for digital downloads. While one could say this is an iTunes issue, it's not. Looking at CinemaNow or any of the other online movie services and you'll see that digital movies cost between $3-$5 more than buying the actual DVD.
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With a 900Mbps connection, you can also download files fairly quickly. For instance, a music album will download in around 1 second and a HD-quality movie will download in about 36 seconds. Browsing the internet and receiving emails should be near-instantaneous on a 900Mbps connection.
With a download speed of 900Mbps, you can download an entire music album in about 1 second. It will take 36 seconds to download a HD-quality film (1080p quality) and about 3 minutes to download an ultra-HD quality movie (4K quality).
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