With Amazon’s Unbox service, you can purchase (or rent) movies and TV shows online and have them downloaded directly to your computer. Services like this will be the final blow to companies like Netflix and Blockbuster, not to mention the last surviving video store chains hanging on by a thread. These types of companies will slowly start to disappear. To quote Agent Smith “It’s inevitable.”

This won’t happen over night. In fact, we are years away from services like this taking hold at all. There are still plenty of obstacles to overcome. You see, when you download a video from Unbox, you are limited to watching it on your computer or portable video player. That’s great for a small niche group of people, but it won’t impress the majority of consumers out there. Especially the ones with 50″ plasma TVs. Pricing is also an issue. Why would I buy Braveheart as a digital download for $13.17 when I can buy the physical DVD for the same price? Is this service targeted at the spontaneous buyer who wants to watch the movie immediately? Perhaps. That’s still a pretty small niche though.

Digital rentals, however, have more of an appeal to me. I can justify spending $1.99 or $2.99 on a rental. Once you download the movie, you have a set amount of time to watch it until it becomes inactive. I believe that number is 30 days right now. Perfect. I have Windows XP Media Center with a very large monitor and digital 6.1 speakers, however. I’m in the minority. Most people have small monitors and crappy speakers. Who would want to watch The Matrix on that set up?

It will be interesting to see how Apple competes with this. To tell the truth, I’m a bit surprised Amazon beat Apple to this at all. I’ve been hearing rumors of Apple’s movie service for weeks now.

One thing is for sure, the world of media is changing at an increasingly rapid rate. I often think of how we will tell our children and grandchildren about things like network television and the TV Guide. How we had to sit in front of the TV at the exact time a show started or you would miss it, perhaps never to see it again. Or how you had to sit through an entire network news program while they spoon fed you stories you didn’t want to hear, all because of the fear of missing the story you did want to hear.

Thank god we live in the age of the Internet!