Hello friend! Have you ever redeemed a digital movie code from inside a DVD or Blu-ray box? If so, you likely used UltraViolet, a cloud service for storing and accessing digital film copies that launched in 2011.
With major studio backing, UltraViolet aimed to simplify digital film libraries for collectors of physical media. But by 2019, this once promising platform shut down operations quite suddenly.
So what happened in those 8 short years? How did UltraViolet go from industry darling to obsolete so fast? Grab some popcorn, and let‘s unspool this tale together!
Overview: The Rise and Fall of UltraViolet
First, let‘s recap what UltraViolet was all about and why it initially mattered.
Launched in: October 2011
Backed by: Digital Entertainment Content Ecosystem (DECE) industry consortium
Key Service: Cloud-based digital rights locker allowing users to redeem digital codes bundled with DVD/Blu-ray purchases.
Goals: Make building a digital film library easy and convenient while adding value to physical media.
Now, as streaming was still relatively niche when UltraViolet began, the platform saw strong interest out of the gate. By January 2019, UltraViolet had over 30 million active registered users who‘d redeemed codes for over 300 million titles.
However, behind the scenes, several big blows quietly mounted against UltraViolet over the years:
- 2014 – Rival Disney Movies Anywhere launched
- 2015 – Retailers like Target switched allegiance to Disney
- 2016 – Studios gradually dropped UltraViolet for Movies Anywhere
- 2017 – Flixster integration ended along with studio partnerships
- 2019 – UltraViolet announces shutdown after 8 years
Unable to survive the explosive growth of streaming and loss of studio support, UltraViolet failed spectacularly. But why did Movies Anywhere prevail? Let‘s rewind and relive this saga blow-by-blow!
The Digital Media Landscape Pre-UltraViolet
First, let‘s set the stage on home entertainment formats before UltraViolet entered the scene. Through the 2000s, Blu-ray and DVD reigned supreme as high quality and convenient physical media options for building movie libraries.
Sure, a niche audience of techies began amassing digital libraries by ripping DVDs or downloading digital copies. But choice was limited, and convenience was low managing scattered downloads from various sites. Cloud technology and code redemption simply didn‘t exist yet.
Then, along came UltraViolet to meet this need. With Blu-ray player household penetration hitting 70% by 2010, the market seemed ripe for better digital solutions. And major studios saw opportunity to boost physical media value while exploring digital ownership models.
Thus, UltraViolet was born! But little did its backers know seismic shifts in consumer behavior were coming…
The Launch of UltraViolet (2011-2012)
Announced in 2010 and launched in October 2011, UltraViolet debuted with the Digital Entertainment Content Ecosystem (DECE) consortium‘s backing and support from most major studios like Warner Bros, Sony Pictures, NBCUniversal, Paramount, and Fox.
Early adopters found redeeming digital codes appealing for expanding libraries across devices. And Flixster provided a unified app for accessing content from multiple studios. For a brief honeymoon period, the format war seemed won.
By 2012, UltraViolet saw steady growth, adding support for new device ecosystems like Amazon and Android. With retailers like Best Buy and libraries crossing 20 million registered accounts and 100 million redeemed digital codes, the platform seemed to deliver on its promise.
But behind the scenes, a lurking threat was brewing…one named Disney.
Competition Arrives With Disney Movies Anywhere (2014)
Despite DECE president Mitch Singer welcoming competition, industry observers eyed Disney‘s February 2014 launch of Disney Movies Anywhere as an UltraViolet competitor warily.
After all, Disney had been the one major holdout on granting UltraViolet access to its gold-standard catalog of animated classics, Pixar hits, and blockbusters like Marvel movies and Star Wars films. Would consumers prefer the digital locker with exclusive Disney access?
By mid 2014, new features like cloud syncing aiming to improve user experience were added to UltraViolet. But August 2014 brought concerning news: for the first time, research showed combined streaming subscriptions outweighed physical video sales. Was digital ownership fading in appeal?
By the 2014 holiday season, retailers like Target chose to promote Disney Movies Anywhere over UltraViolet. The tide seemed to be turning…
UltraViolet Usage Vs. Streaming Growth 2014-2018
Let‘s pause the narrative to examine some telling statistics from this era:
| Service | 2014 Registered Users | 2018 Registered Users |
|---|---|---|
| UltraViolet | 25 million | 30+ million |
| Netflix | ~50 million | ~140 million |
As this table shows, Netflix‘s meteoric rise to dominance reveals a pivot in consumer behavior and tastes. While UltraViolet maintained modest user growth, streaming absolutely exploded in popularity as audiences found subscription convenience irresistible.
This sea change spelled trouble for UltraViolet. Let‘s see how things played out…
Retail & Studio Support Erodes As StreamingTakes Over (2015-2018)
By 2015, after losing Target‘s support, UltraViolet struggled behind the scenes to retain studio partnerships now questioning physical media‘s future.
Research firm DEG data showed 2014‘s $25+ billion physical video revenue had dropped nearly 50% to $13 billion by 2018 as DVD and Blu-ray sales tanked. Yet studios binding UltraViolet agreements prevented them from fully embracing streaming.
Gradually, whether due to Disney‘s lobbying or streaming‘s growth, major studios like Lionsgate, Fox, Sony, and Universal began abandoning UltraViolet for Movies Anywhere between 2016-2018.
Despite touting "over 300 million movies and TV shows" stored by 30 million accounts, without backing from 6 of the 8 major studios, UltraViolet‘s catalog breadth was severely diminished.
The final shoe dropped in 2018 and 2019, as remaining retail supporter Walmart and key tech partner Flixster cut ties. With Movies Anywhere now the de facto standard for code redemption, UltraViolet‘s market position was ultimately untenable.
Why Movies Anywhere Outlasted UltraViolet
Yet somehow, despite the physical media market shrinking by nearly 50% since 2014, Movies Anywhere has endured while UltraViolet faltered. Why?
Several key advantages gave Movies Anywhere ongoing relevance:
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Exclusive Disney content: Movies Anywhere is the only way to redeem Disney codes and store Disney, Marvel, Star Wars films. This unique appeal weathered market shifts.
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Retail distribution: Solid integrations with Apple TV, Amazon, Google Play, Microsoft Movies & TV, FandangoNow kept Disney digitally distributed.
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Studio share: Eventual support from 6/8 major studios gave Movies Anywhere wide cross-studio appeal.
While niche interest in collecting digital codes continues, it can‘t compare to streaming‘s total domination. Yet Movies Anywhere delivers enough unique value to keep a small but passionate user base engaged.
UltraViolet, backed by a technical standards consortium, just couldn‘t compete once market preferences evolved.
Key Takeaways – Why UltraViolet‘s Failure Offers Important Lessons
Based on UltraViolet‘s rocket-like ascent and equally stunning demise, we can draw some key lessons:
1) User behavior evolves rapidly due to tech advances. Niche early adopter interest can quickly shift mainstream. Products failing to adapt get left behind.
2) Content remains king. Movies Anywhere survives because exclusive content retains value despite industry fluctuation. Generic aggregation apps are far more vulnerable.
3) Change is the only constant. Clinging to legacy models or formats doomed for disruption serves no one. The future belongs to those embracing what lies ahead.
UltraViolet‘s epic rise and fall should remind innovators that initial usefulness doesn‘t guarantee ongoing success. Only by anticipating and embracing change can new platforms flourish over time.
Well, friend, that concludes this definitive UltraViolet saga. Hopefully you found this tech history insightful! What key takeaways did you have? Let me know in the comments!
