Wait...What?

Crackle is a new app from Sony that allows you to watch full length movies and TV shows on your iPad and iPhone. (actually it's on pretty much everything but I use it on the iPad so we'll stick to that)
It is very much like Hulu+ in that you browse the list of movies or shows and you can either watch the full version or clips and 'minisodes' if the full version is not available. In the case of shows it seems to be far more clips than full shows.

The difference between Crackle and Hulu+ is, Crackle is completely free. No subscription fee. No cost for the app. Nothing.
How and why do they do this?
Well, first, there is a 30 second ad before each video, but that's small potatoes, because the app itself IS the advertising. Crackle is one big brilliant app designed to give you the ability to buy or rent movies and shows right from the app.
You see the movies are only available on a monthly basis in full form. Although a few will probably always be available. But in general they rotate the movies from month to month. On the iPad/iPhone if a movie or show is available in the iTunes store you click on the link and go rent or purchase it.
You may be thinking what I was thinking, "I'll just AirPlay it to my TV. No need to rent it."
Yeah, they thought of that. AirPlay is not available inside Crackle.
So does it work? Will you buy a movie if you watch clips through Crackle? Well, I suppose it depends on the movie really. I did buy Spiderman 2 when I saw the clips. Forgot how much I like that movie. But no amount of money in the universe could get me to buy the Matthew Broderick version of Godzilla.

But streaming apps and even purchase links are nothing new under the sun. What makes me like Crackle so much is its potential and example to other content owners. This feels like what the iPad was built for from day 1. Apps instead of channels, or along with them. Apps as 'living' catalogs.

I will use my favorite channel as an example. Imagine, instead of a box of DVDs, Turner Classic Movies came out with a TCM app. From top to bottom completely controlled by TCM. They could do the same basic format with movies. Offer clips or rotate a certain number of movies each month. But where the real ownership comes in is, TCM's original programming, shorts, documentaries all could also be offered in the app. If you like the movie, buy it or rent it in the iTunes store. Now imagine, you don't just get the movie, but the TCM version complete with the Robert Osborne or Ben Mankiewicz intro and outro, adding value to the purchase. It is a perfect way to brand the content and bring your revenue stream into the 21st century.

Insert your favorite content owner/provider into my example and you can see the great potential for both consumers and producers here.

If you are any kind of visual content provider, either online or traditional broadcast, and you are not on iOS and other mobile devices you clearly have no desire to continue doing business.
This is the future. Whether studios like it or not, and if providers don't find the best way to take advantage of the opportunities available, someone will start producing specifically for this future and you will find yourselves clutching to forgotten content. It is too inexpensive and there is too much revenue opportunity out there for it not to happen. The first online mainstream hit will open a floodgate that will drown old media companies.

Here's to the future.