At yesterday's Apple Showtime event, Steve Jobs announced upgrades to iPod/iTunes, the addition of movies to iTunes, and an upcoming product called iTV. Movies on iTunes had been predicted and much discussed before the event, so the real interest was in the iTV announcement - which is essentially Apple's version of Media Center, the Microsoft tv product. iTV (not the final brand name) will enable users to view all their Apple-downloaded content on a big screen tv - movies, TV shows, music, podcasts, and photos.
Several pundits noted that Apple's strategy for their Internet-connected products, including iTV, is disarmingly similar to the one Microsoft employs: closed ecosystems built on proprietary, locked-down technologies. As Tristan Louis put it:
"...there is no DVR or traditional TV tuner built into the device. I believe that this was not due to a technical limitation but rather as part of a wider play to create an eco-system around the new device. Much like Apple initially allowed other companies to develop components that played well with the iPod, I believe they are trying to get a new ecosystem built around the new device. This will allow them to gage innovation in the space and identify which opportunities may be best for future integration or as components to add to the system."
Apple is betting that their design and marketing prowess will give iTV an edge in what is shaping up as a highly competitive market for online television and movies. Microsoft is taking a multi-pronged approach - with Media Center, XBox, the upcoming Zune (an iPod-like product) and other multimedia functionality built into Vista. Let's not forget other players either: Yahoo has been testing online TV and video services, Google hasn't done much yet but could easily enter the market, smaller players like Brightcove and Gotuit, the cable tv companies, Sony, plus there are the existing DVR products like TiVo.
Where Apple's Internet strategy is different from the others is that, as Om Malik put it, "content is what sells the hardware". And that has worked a treat for music - the iPod has 75.6% of the market and iTunes 88% in the US and number 1 most other places (it still hasn't released in New Zealand though!!). They've achieved that through a combination of a 'best of breed' design (for the iPod) and a large selection of music on iTunes, that is about as comprehensive as it gets for legal downloads (still nowhere near online music nirvana though).
I'd bet dollars to donuts that Apple can nail the design for iTV, just as they did for iPod. That's almost a no-brainer. The real question though is: can they get as wide a selection of video/tv/movies as they've managed to do with music? So far they only have Disney video, courtesy of Steve Jobs being on the board of Disney. Will the other Hollywood and major media tv networks be as willing to give Apple rights to their content? I doubt it. In fact, it'll be extremely difficult for Apple to get mainstream media content for iTV - which they need, given that it doesn't have DVR functionality.
The online video and tv market is wide open right now. Will Apple's iPod/iTunes strategy work as well for movies/tv shows as it did for music? If I was a betting man, I'd give that a resounding NO. There are too many other players - and none of them are as ill-informed and ignorant of the Internet as mainstream music companies were/are. Plus of course Microsoft missed the boat with online music (Zune is a very belated attempt at catch-up), but they won't make the same mistake with video/tv.
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I think Jobs was afraid people would take this stance and took the defensive. So, he twice noted that with TV shows, they started with 5 shows and now have more than 200.
The TV content is already there. The movies will come (assuming it follows the same motion. I'm betting this will be hugely succesful.
Posted by: Kevin | September 13, 2006 8:34 PM
will the UI for iTV rule? most likely.
will it be cost effective? most likely.
will it be easy to setup? most likely.
*the* biggest question is whether or not it will play everything that Mplayer or VLC will play. stuff like 3-warp-point GMC or multiple B-Frames...
Posted by: munkyboy | September 13, 2006 8:41 PM
iTV looks like a nice mouse pad. Hmmm...
Posted by: Terry Xu | September 13, 2006 9:57 PM
Whether there will be enough content depends on the success of the Movies section of the iTunes Store. This is why the iTV was previewed at the launch of the Movie section. It's a warning to movie companies to get on board with Apple, whilst demonstrating Apple's commitment to idea.
The iTV will be successful. I see it as a way of distributing media, rather than centralising media.
There's no evidence to suggest, either, that it doesn't have DVR capabilities. All we know is what Steve Jobs declared it to have.
Posted by: Chris | September 14, 2006 1:01 AM
iTV is not Apple's Tivo, iTV is the next generation Airport Express. The idea is to be the node that connects the TV with computers, internet and DVRs. This is only their first step in connecting the TV to the computer.
I'm pretty certain they'll create a lot more creative and innovative equipment, software and interfaces for TV than this.
Posted by: Rikard | September 14, 2006 1:15 AM
It really depends on exactly what their strategy is here.
While iTunes is the number one music store, it's still not where most people are filling their iPods - mine is mostly filled with CDs (+ more stuff from emusic than iTMS). And as you say, the strategy isn't to use iPods to drive iTMS sales but the other way round.
My hunch is that it is less to do with on-line movie sales and more to do with home integration. I've already got an Airport Express connected to my hifi, and increasingly use that in combination with iTunes over CDs. If I could do the same with my DVD collection, and replace the profusion of boxes in the living room with a single slim device - I'd be very happy, and my wife more so.
What is interesting is how it differs from the ‘Media Centre’ PC strategy – rather than having a full self-contained PC in your front room just to serve media to your TV, you have a device that acts as an adjunct to your existing home PC – and is therefore far lower in price / smaller in form factor – and presumably near silent. It looks, from the screenshots, like it’s running Front Row (early 2007 is Leopard time so presumably also Front Row 3) so it would also serve as an excellent demonstration of OS X to Windows users.
(I also have a sneaking hunch that Apple may be working on a domestic NAS device – the Time Machine feature in Leopard, and storing lots of full-length, full-resolution movies, suggests the need for far larger HD sizes than they have in any of their home market machines – and going external seems more sensible that boosting the internal HD size).
The killer thing for me is whether they will be able to get an agreement to let consumers rip their own DVDs (into some Fairplay protected format). Without that, you’re stuck with bought content – and the iPod would never have taken off if the only way to get music onto it was through the iTunes store (it is more that iTunes has taken off because it is so easy / convenient for iPod owners).
Otherwise it will be just left to those who are already capable of ripping their own DVDs, using an Elgato as DVR.
(I would see DVR as being a function of the main computer, not the iTV. Whether Apple adds DVR integration into FrontRow / iTunes 8 is another matter - I think eventually they will feel pressured to).
Posted by: JulesLt | September 14, 2006 1:41 AM
I must admit to being somewhat confused. It's almost as if Apple are betting the farm that broadcast TV is dead, that nobody will really want a DVR because video on demand will win in the end. At the moment this seems like a crazy decision, but then so did removing floppy discs from their machines, or serial ports. Maybe they're just ahead of the curve here?
I like the NAS idea. Maybe Apple is going to go with a whole bunch of boxes that just do one thing well and connect together via 802.11n, and all auto-discover each other Bonjour?
Posted by: Alasdiar Allan | September 14, 2006 5:13 AM
The UI issue aside for the moment, why would apple put DVR functionality in the "repeater"? I get why they might put in a drive but the DVR app is an install to a computer isn't it?
It seems to me to be much easier to manage a, "online-everythings-on-media-world" with a DVR that is connected to a mouse and a keyboard than a remote, even Apple's remote. I mean making impulse optins to programs your watching is one thing; but updating the fall season, planning for a few football games and setting up some special Charlie Rose interviews to watch on the plasma kinda for me translates to a keyboard and mouse thing to do not scrolling up and down and around the wheel of glassy images with the clicker. Apple is right it SHOULD be something you do with a remote but jezz how much time do I want to spend clickity-clackin around being forced to live in someone's UI hedge maze?
Wow, I just realized it comes back around to the UI and the experience.
Posted by: Loook | September 14, 2006 6:57 AM
Let's see ... I already have DISH with DVR (Check), A DVD Player for DVDs adn VHS tapes (Check), I'm too checp to buy a stereo (iPod will do) ... Hum what do I need .... ???
A way to play my iTunes Videos on my TV without burning DVDs that my kids chew on ... oh, look at that an iTV for $299 ... next year's xmass gift list (Check).
So lets see, once its connected to my TV to play content streamed over the 802.11x(n) ... who's to say it can't send TV signals back to my MAC ... I haven't heard anybody say either way ...
And even if it doesn't (in the first version) ... that's only a software upgrade away .. no problem I can wait ...
Apple has alredy thought this through ... just sit back and watch them succeed while M$ continues to digg a hole in their market share with a lampooned Vista and an already belatred and failed media center ...
Just my .02.
Posted by: Brad | September 14, 2006 12:41 PM
The people in your comments have made many valid points that I have to agree with.
Jobs pointed out that they started out with only 5 TV shows and now have all the networks aboard.
I can now watch Ze Frank on my TV...awesome.
I am sure that they are going for a simple, "it just works", device first and will add feature when the market is right for it.
With cable compaines giving "on Demand TV" and or people using DVRs to watch their shows as #7 said the idea of a Network is dead.
But 300 ducks for a netowrk device is too much for my budget.
Posted by: Erik | September 14, 2006 5:00 PM
Excellent comments all - and you've certainly made a good case for Apple succeeding. I guess it remains to be seen whether they can get significant share of mainstream content.
Posted by: Richard MacManus | September 14, 2006 5:45 PM
I'll personally bet $5,000 that Apple sells more iTVs in one year (starting from quarter 1 of 2007) than Media Center PC (ones specifically designed, not just the options listed in windows vista) I have Vista, and damn does the media center (ultimate) SUCK. It's horrible, everything is a disaster, using a DVR, cablecard, all this crap, it's so complicated to get anything freaking working.
iTV will win. Why? People know iTunes. They know the brand, it dominations the market
BUT THE REAL reason iTV will win, is because unlike MEDIA center extender, and all that crap you have to do to get windows media center downloading content.... (it's a nitch market)
Everyone knows iTunes, and will just be able to see whatever is in any iTunes library in their house. Not only that but by Q1 it will also include 1080p content in the itunes movie store, and movies can be played before finished downloading....
The box is sooo simple. It's perfect. I can keep my crappy comcast DVR, not have to worry about cablecard compatibility. I just will have another device on another input with HDMI 1080p for my HDTV, (and there will be plenty of HDTV content from itunes) Especially since they are using h.264 the video codec in blu-ray and high-def connectors.
Posted by: Court Kizer | September 14, 2006 7:19 PM
I find it amazing reading all of these "I think I know what I am talking about" columns.
The obvious is the price point and design. The iTV is the same size as the Mac Mini. You place this device on top, or bottom of the Mac mini and then get the right software such as
Mac Media Center
http://www.equinux.com/us/products/mediacentral/index.html
or hang out at this site:
http://www.machtpc.com/
Game Over. This is a perfect fit for what really is to come in 2007.
Posted by: xspoon | September 14, 2006 7:19 PM
Seems nice, but it costs about a hundred bucks to add that functionality to a PC, less if you run linux, but that's not a very large group.
I own and ipod (it died three weeks ago, after three years of good use) and while I enjoyed it, I always felt it was poorly designed. Some of the updated versions made small improvements, but I'm definitely going to wait until the Zune comes out until I make another MP3 player purchase. The Zune looks to have better software, better support, and better design all around (widescreen, wireless, more codec support), something that I would not normally say for a Microsoft product.
Of course, I'll wait for it to actually launch before i jump on board. But even if it's crap (not at all unlikely) hopefully it will make a big enough dent (doubtful, but possible) to make apple drop their prices again.
Posted by: Zach | September 14, 2006 7:20 PM
for the people who don't understand about the DVRs. It doesn't replace your DVR. it just goes on another input. I have 10 inputs on my sony 60" LCOS TV. One of them will be iTV.
Steve even showed iTV sitting on top of the badly (UI wise) designed comcast dual tuner HDTV tuner.. Which living here in the same area as him we have comcast.
It's not SUPPOSED to replace TV or DVRs, it's just an added device, that goes on an input. Like those Roku SoundBridges that stream Mp3s everywhere, except this bad boy is gonna stream 1080p HDTV content around the freaking house.
I'm going to Finally have 2 Terabytes of storage in the other room in my macpro, going just for video content and all the high def content. Everyone will be on board..
You'll see.
RIGHT HERE RIGHT NOW I BET $5,000 with anyone.
Posted by: Court Kizer | September 14, 2006 7:24 PM
You are an idiot. Everything Appple releases turns to gold and you know it. Micro$oft paid you to write this crap.
Posted by: Me | September 14, 2006 7:27 PM
Why is it assumed that DVR is needed for this to be a great device? Most consumers already have cable boxes or satellite recievers with DVR functionality built into them. This is an AUXILIARY device.
What wasn't mentioned, though is if it would upconvert the content. HDMI is present, which implies HD output, but the movies are only 640 X 480. Will the box convert then to 1080i or 1080p? If so, then this might be a cheap way to have HD movies.
What also hasn't been said is if the movies could be burned for archiving. Once a person buys a season pass or two of TV shows and then adds say, 10 movies, there is a sizable investment. Everything is on a HD.
Also, will peope feel OK with d/l'ed movies? A physical DVD for the same price has value for most people because they can fell it, loan it, or re-sell / trade it if the mood strikes.
I absolutely love the idea of a centralized movie / TV / music source, but there are some things I need.
1) I need HD - Like most people I didn't buy an HD TV to watch low-res content.
2) 5.1 audio - the audio should match the visual
3) Price comprable to new DVDs in the store
4) Backup capability - I don't want to lose my content investment to a HD failure.
5) I'd love it if the DVD Extras were also available somehow; again, if I drop $10 - $15 at Target or Wallmart, I get extra stuff that I enjoy as a movie fan.
6) The ability to play the same codecs that are on my PC would be huge. If the content can be played on my Mac or PC, I want to be able to play it on the iTV.
If Apple can do these things, I might get one.
Posted by: Nathaniel Avery | September 14, 2006 7:46 PM
I was interested in the premise of your headline, but I didn't see where you answered the question. You just say .... "they won't have content, nope."
If 75% of Americans are sitting in front of iTunes, are they going to jump for a competing system with a wacky interface like "unbox" to get content, instead of checking out the iTunes Store?
Or will they buy gear that doesn't play their existing music?
check out:
How Apple's iTV Media Strategy Works
iTV: the Killer App for Wireless N
Posted by: Daniel Eran | September 14, 2006 8:33 PM
With the impending launch of the product codenamed iTV, Apple will have even more access to your living room and digital content. With the recent launch of Apple's games for iPod, and the streaming capabilities of the iTV, Apple could secretly position itself as a serious rival to your current gaming setup! It's brilliant!
I didn't understand at first why they would sell games. The iPod doesn't exactly sport a large screen and isn't really considered as a gaming machine. So why?
To invade our living rooms! If the iTV can stream large files such as iTunes' movies, then why not a game! iTV is already compatible with the apple remote, which has a similar layout to the iPod. Logically, if the iPod can play a game using that layout, then surely you can on your television using the Apple Remote! It may sound crazy but just may work (depending on if they advance the game graphics, etc.)
Posted by: nate andrews | September 14, 2006 8:50 PM
How about an easier (and much less costly) solution?
Purchase a video output to RCA converter for around $6 (or an s-video cable if your graphics card and TV support it) and run your computer through your TV! This way, you can still run iTunes and play media files through your tv, but it also gives you the added flexibility of being able to run what you want, when you want, and you're not confined to the iTV interface!
What do you think?
Posted by: Ryan | September 14, 2006 9:08 PM
Ryan:
Not all of us have a computer next to our TVs. Mine are on another floor of the house, and the hard drive in my iBook is really not up to holding all my DVDs (My DVDs are ripped onto a PC I built as a media storage device, specifically NOT a media pc as it would be FAR too noisy, and windows makes baby jesus cry). I know i can bring my mac mini down to the TV and attach it when I want to watch movies through front row... but I dont do that often because frankly it sucks having to connect a computer to the tv every time I want to use it. The iTV device allows me to leave it connected to the setup all the time.
Posted by: Tom | September 14, 2006 11:48 PM
A device that seamlessly, effortlessly and wirelessly streams all of your music, podcasts, video podcasts and TV Show episodes from your computer to your TV (different room or even different level of your house) on demand is an excellent product and will be received well. And that is without even mentioning the movie downloads from iTunes that can start being played 10 minutes after being purchased, while they are still downloading.
Posted by: Deryn | September 15, 2006 1:44 AM
It also streams your DOWNLOADED and RIPPED movies to your TV set. Like the iPod that also plays downloaded or ripped MP3's, the iTV plays everything QuickTime can play.
So no need to buy Apple's closed content if you use the iTV.
Posted by: Pliep | September 15, 2006 1:59 AM
I'm suprised no one has mentioned iTv's ability to display your high resolution digital photos on your HDTV. That alone would be worth $300 to many people. I think Apple has a winner here.
Posted by: Andy Roth | September 15, 2006 5:45 AM
Dumb article as iTV will be a success. "Microsoft's didn't work...blah blah blah" Could you download movies with MS's device? No! Could you download TV Shows? No! Isn't that the whole reason to hook up a computer to a TV? Yes!
I am pretty sure many people will download movies off of iTunes as opposed to drive to Blockbuster or wait for Netflix. Article author = idiot who doesn't see the big picture.
Posted by: paul | September 15, 2006 7:45 AM
To post #14,
How can you say that the Zune has better software, better support, and better design all around? No one has one in their hands yet! And if you consider the large, gawky design of the Zune as better, then I'm afraid you are definitely in the minority when it comes to public opinion. Of course, if youre statement about "better design all around" is based on the Zune's feature set and software design, then I think you may be jumping the gun a bit. It sems like everytime I turn around, a feature on the Zune has gone from "definite" to "possible" to "we're working on it to see if we can do it". Microsoft has a bad habit of blurting out their ideas for a product before they actually see if it is pheasible. Don't count on all these features just yet! Zune = Vista.
Posted by: GnKnight1 | September 15, 2006 9:31 AM
Apple's success with the iPod/iTunes combo has been primarily due to one major thing -- excellent design. The iTV will be no different. There is no way downloadable movies will have a chance without a easy, straightforward way to view them on a larger screen in the living room. Apple's direction has been clear for quite a while, and a device to stream video to the living room has been predicted since people first mentioned "movies" and "iTunes" in the same sentence together. I'm seriously looking forward to this product. I just wish 5.1 sound was supported. digital optical out for just Dolby Surround is kinda silly.
Posted by: GnKnight1 | September 15, 2006 9:42 AM
New media always has the chicken and egg problem. Audience numbers draw content owners in. Content availability draws the audience. Apple will get the content if they can build an audience.
So what value is there now for the early-adopter audience? Plenty. A TV U-I for music, and video podcasts, and personal photos stored on the network. I'll find value in iTV even if I never purchase a movie. (and given the limited resolution and DRM--I'm not likely to purchase a movie any time soon.)
Posted by: Michael Markman | September 15, 2006 10:02 AM
I'm going to have to disagree - not just because I'm rooting for the technology, and the company, but because there is a good idea in there somewhere.
Apple is known for creating products and services with an "ease of use" that isn't matched by it's competitors. Even starting out late in the life of online digital music, will Microsoft be able to build something as seamless as iTunes and iPod... I think not.
Imagine a day when every tv show, every movie, and every song are at your fingertips. Available immediately, with a 2 minute buffering wait. I'd pay for it. Not $15, but I'd pay something.
Apple has an extraordinary advantage with Steve Jobs affiliation with Pixar, and thus Disney, something none of it's competitors have ever had, and already have a pretty impressive line up as a result. If the technology can be proven profitable for disney, what is there to stop other studios from jumping on the wagon.
The only issue as I see it is copy protection, and I think that has to do more with pricing than policing. Right now, downloaded movies from any illegal source like bittorrent, are generally unreliable. You're just as likely to get the spanish version as you are the english, and are, by definition, low quality. To get a higher quality version ones only option is to rent an actual dvd, rip it, and then burn it to dvd. The cheapest way to do this probably the Netflix -> Roxio Popcorn, method. But this still costs an average of $3 - $4, and takes an average of 1 hour of computer processing time per movie.
If Apple can eventually get their prices down to this level, and come through with their promise of "near dvd quality", I don't see piracy continuing on a scale of any relevance.
Posted by: nicholas | September 15, 2006 12:42 PM
Hey, I just had a crazy theory pop into my head. Since the apple people were so "look at but don't touch" with the ITV, What if it actually WAS a new mac mini revamped into a living room do it all connection hub computer. It just talks to your other machine(s) to use their storage so there isn't any noise in the living room from the hard drives and it has all the jacks a swiss army hub would need?
Posted by: ericlawrence | September 16, 2006 12:04 AM
I think it's certainly intriging. I think that downloaded movies and TV shows would only be the beginning. Remember that all Apple computers all come installed with software like iMovie and GarageBand. It would also be cool to see all of those home movies that you have digitized and stored on your computer upstairs on your TV downstairs without having to pop in a DVD...look at your photo album on your TV? There's already podcasting, how about vidcasting on your TV? YouTube on your TV? There's already games for the iPod...can you port them to your TV too? If not in the first generation, then definately by the second or third.
Interesting stuff indeed...
Posted by: Nicolette Tallmadge | September 21, 2006 8:38 PM