Apple’s streaming service hits roadblock

Apple’s game-changing film streaming service has suffered a major setback with a lack of film distributors signing licensing deals.

The release of iTunes Replay, as it will be known, has been severely hampered by a licensing problem, which has reportedly come to light because TV giant HBO currently owns the exclusive rights for the digital distribution of 20th Century Fox, Warner Brothers and Universal. With only two of the ‘big six’ on board for Apple’s new service, it is bad news for the company, who were recently named the biggest sellers of smart phones in the world.

This news coincides with the announcement that both Amazon and Vudu will be launching ‘internet apps’ for the ipad using HTML 5, cutting out Apple by hosting the app directly on a website rather than through the app store, which will stop Apple’s commission.

What is even more worrying for Apple is that Vudu, launched by Walmart today, is a film steaming service that is a direct rival to iTunes Replay. As previously mentioned, the app will be web based, meaning that Apple will have no say in the content, style or pricing, as well as being completely cut off from any profits it makes. Vudu is one of the first websites to stream content in HTML 5, thus making it usable on the ipad and iphone.

With Amazon’s Kindle also coming to the ipad in the form of a HTML 5 web app, combined with the difficulties it faces with its own streaming service, could this mark the end of the app store and Apple’s online dominance? A scary, yet realistic proposition.