UltraViolet Launched; Apple Streaming Movies Too?

As the UltraViolet format quietly makes its debut, there are rumors that Apple will launch a video streaming service of its own.

If you haven't seen the new TV commercials for the movies "Horrible Bosses" and "Green Lantern," they mention that not only are the flicks now available on DVD and Blu-ray, but viaUltraViolet as well. The new digital format quietly made its debut on Tuesday, a format the Hollywood is hoping will resurrect the "failing home entertainment market."

So far only three UltraViolet movies will be released anytime soon which include the two previously mentioned and the last Harry Potter movie, "Harry Potter and the Deathly Hallows: Part 2" on November 11. Sony's "The Smurfs" and "Friends With Benefits" are listed to arrive on December 2, and Universal's "Cowboys & Aliens" will arrive on Dec. 6. Paramount, Lionsgate and Fox are expected to offer UltraViolet movies in Q1 2012. So far Disney will not issue UltraViolet editions.

Unfortunately, there's a catch  to the UltraViolet format: consumers will first need to purchase the DVD or Blu-ray disc before acquiring the UltraViolet version. By purchasing the physical media, consumers are essentially purchasing the rights to that copy, allowing them to unlock a digital version that can be streamed or downloaded to multiple devices like desktops, tablets, smartphones and other mobile devices. The digital file can even be burned to disc so that it can be watched on a DVD or Blu-ray player.

"When you buy 'Horrible Bosses' you will have a set of rights that far exceeds those that you had with the Blu-ray you bought yesterday," said Mark Teitell, general manager and executive director of the Digital Entertainment Content Ecosystem, the consortium behind UltraViolet.

At one time there were reports that UltraViolet would allow the consumer to scan in bar codes found on the outside of any DVD or Blu-ray movie boxes they already own to unlock the digital version. That may longer be in the cards for UltraViolet consumers, but eventually they will be able to buy digital rights to a movie through online retailers such as Wal-Mart's Vudu without having to purchase a physical copy.

But the current option still may not be ideal. As it stands now, digital versions unlocked by UltraViolet are only accessible for a year -- Warner Bros. is actually granting three years. So far there's no indication that the studios will renew their "lease" on the digital copies, and if they do, they reserve the right to levy additional service fees.

According to the UltraViolet consortium, a code will be available within the purchased DVD or Blu-ray box. Consumers then set up a free account on the UltraViolet website and enter the code. Movies and TV shows offered by Warner Bros. will be provided through Flixster, an Internet video service -- meaning consumers will also be required to create a Flixter account. Movies can be downloaded or kept in cloud storage for streaming to various devices. Five additional people can view UltraViolet movies (besides the account holder), and so far Android and iOS is not supported.

Meanwhile, rumors have resurfaced that Apple may bring video streaming to its iCloud service. The LA Times is the latest to rekindle the rumor fires, citing mysterious unnamed sources who say that Apple is currently negotiating with a number of movie studios. The service, slated for a late 2011 or early 2012 launch, is to supposedly rival Netflix and Amazon's LoveFilm subscription services for streaming movies and TV episodes. There's also talk that consumers will be able to purchase the movies and TV episodes outright just like they do now via iTunes, only the files can be streamed to their iOS device and PC/Mac in addition to downloading them locally.

"This is going to be a huge boost to a struggling online movie business," said Arash Amel, digital media research director for IHS. "Apple is going to make it work right off the bat."

The paper also cites sources who claim Apple is considering allowing people who purchase and store movies with Ultraviolet to watch their movies and TV shows on apps for iOS. However, movies purchased through Apple's new streaming service would continue to reside within the iTunes envelope, and cannot be transferred over to UltraViolet.