"Overall, pricing on iTunes is inline with traditional DVD rentals from bricks-and-mortar stores such as Blockbuster, as well as directly comparable online offerings. Movie rentals are priced at $2.99 for library titles and $3.99 for new releases, with High Definition versions costing one dollar more. However, when compared to subscription packages such as the eat-all-you-want service from Netflix, Apple’s prices soon add up, for all but the most casual movie watcher. Not offering a subscription option seems like a missed opportunity by Apple."

iPhone, iPod touch updates are incremental, welcomed, and point to future

"Today’s software updates for the iPhone and iPod touch are welcomed refinements from Apple. Are they earth-shattering? No. They’re incremental, carefully thought out, and point to what we can expect in the future.

"It’s a platform that competitors are no where near duplicating. By the time competing manufacturers introduce their versions of the iPhone (many of which may use Google’s open mobile operating system Android), Apple will unveil even more refinements as well as introduce iPhone 2.0."

AppleTV 2 breaks free from the PC, remains under Apple’s lock and key

"With AppleTV "take 2," the chains are off so to speak. No longer does the device require the use of a computer to download and manage content (although it can still access media stored on a PC), and is instead capable of fetching content directly from the Internet -- movie rentals; film, TV and music purchases; podcasts; and photos.

"But aside from Apple-sanctioned access: the company’s own iTunes Store and .Mac service, podcasts, Flickr and YouTube -- the AppleTV remains under lock and key, closed to third-party developers and web services, and subsequently unable to pull in additional content from elsewhere on the net."

Reading between the lines of Jobs’ comments on Kindle, Android

"What does Steve-o really mean when he says, "It doesn’t matter how good or bad the product is, the fact is that people don’t read anymore"? And: "The whole conception is flawed at the top because people don’t ready anymore"?"

BBC tech chief: iPlayer on iTunes now a possibility

"Movie rentals on iTunes could pave the way for content from the BBC’s catch-up service, iPlayer, being offered on Apple’s platform, according to the broadcaster’s Future Media and Technology Director, Ashley Highfield."

Be sure to check out more great digital life coverage every day at last100.

We all knew iTunes Movie Rentals were coming, all that was left for Jobs to announce were the details.

The iTunes Movie Rental store launches today in the US (later this year for the rest of the world), with rentals costing $3.99 for new releases, and $2.99 for library titles. Renters have 30 days to begin watching a movie, and then 24 hours to finish watching it once they do. Every major studio is on board, and Apple's rental store launches with over 100 titles (1000 promised by the end of February), with new releases appearing 30 days following DVD release (which perhaps indicates some hesitation on the part of studios to embrace a new format -- no surprise there).

At first glance, Netflix would appear to have a leg up on Apple. Unlimited streaming for a little as $8.99 per month is probably a better deal for most consumers than $4 per movie strapped to a 24 hour viewing window. But where Apple's system shines is in its convergence with other devices. Whereas Netflix can only stream to Windows PCs, Apple can stream or download rented movies to both the Mac and PC, as well as to any current generation iPod, the iPhone, and the Apple TV.

Jobs said in his keynote that many companies have tried to figure out how to stream movies from the PC to the TV -- Apple tried, Microsoft tried, TiVo tried, VuDu tried. All of them failed, according to Jobs. In fact, even though Jobs touted the 125 million TV shows and 7 million movies sold so far via iTunes as miles ahead of competitors, he still said they missed their sales goals. That is one of the reasons, according to Jobs, that Apple embraced the idea of rentals, and one of the reasons they revamped the Apple TV so that it could rent and stream video directly from iTunes.

Image via TechCrunch.

Jobs demonstrated the ability to browse iTunes and rent movies with a single button click directly through the Apple TV. The device can also download and stream podcasts through iTunes, sync with computer content (as before), connect to YouTube, and grab photos from Flickr and .Mac.

The Apple TV updates will be pushed to current owners as a free software update. To entice new buyers, Apple lowered the price of the device by $70.

MacBook Air

The other major announcement we all knew was coming: the Macbook Air. Speculation that Apple would release an ultrathin notebook has been flying all weekend, and Apple delivered today with one that redefines the meaning of "thin." Clocking in at just 0.16" (at its thinnest end, 0.76" at the thickest), the 3 lbs. Macbook Air sports a 13.3" LED backlit screen, 1.6-1.8 GHz Intel Core2 Duo processor, 2 GB of RAM, a 80 GB HD (64 GB SSD option), 802.11n + Bluetooth 2.1/EDR, a reported battery life of 5 hours, and no optical drive.

Drawing oohs and aahs from the crowd, the Macbook Air also has a multitouch track pad that allows for a lot of new gestures -- like rotating photos by pivoting your thumb and forefinger.

While Jobs was clearly tickled by just how thin the Air is (he introduced it by sliding it out of an envelope and then showed a TV commercial playing off that quality), he was also clearly proud of the steps that Apple has made to make the production of the machine more environmentally friendly. It is the first Apple product with a fully mercury and lead free display, BFR-free circuitry, and due to its form factor, it can ship with 56% less packaging.

Image via TechCrunch.

All that's remaining is to find out of the MacBook Air can help my vertical leap... (sneaker joke... anyone?).

iPhone/iPod Apps and Time Capsule

Jobs made two other major, albeit less buzzworthy, announcements at Macworld. After briefly mentioning his excitement over the iPhone SDK coming next month, he announced a handful of new apps for the device. These include an improved mapping application (with location finder), webclips (like bookmarks for your phone's home screen), and multi-SMS. The new apps are all available as a free software update for iPhone users.

The iPod Touch also got some love with the announcement of five new applications: Mail, Maps, Stocks, Weather, and Notes. Inexplicably, while the iPhone gets a free update, the iPod apps (which already exist on the iPhone) will cost users $19.99. That prompted engadget's Ryan Block to chide Apple for being, "SO weak." Agreed.

The first new product Apple announced at Macworld 08 was a wireless external hard drive. Time Capsule, as it is called, comes in 500GB and 1TB flavors and syncs wirelessly with OS X Leopard via its 802.11n base station to back up your files. The device will ship in February.

In the following poll, we've included each of Josh's predictions - and also added some more from RWW commenters.

Steve Jobs photo credit: dfarber

Last year it was the iPhone, two years ago it was the Intel iMac, the year before that the iPod shuffle and the Mac mini. While clearly, not every year is as exciting as the last, Apple always has something in store for us. History would suggest that this year's announcement won't be as earth shattering as the iPhone last year, but one never really knows what the Great and Mysterious Jobs has planned.

An interesting sidenote: I am perhaps the only ReadWriteWeb author who isn't a regular Mac user. But if prediction number 1 pans out, then I see that changing very quickly.

1. An Apple subnotebook - This one has been kicking about for years. The rumor is that Apple will announce some sort of subnotebook (think: 10.4" screen or smaller) that has no optical drive, a solid state drive, and maybe even a multi-touch screen. What lends more credence to the rumor this year, perhaps, is that the market for these small devices is heating up. The Asus EEE PC is flying off shelves and Everex is planning the release of a subnotebook based on the Via NanoBook reference design (Packard Bell is the NanoBook OEM for Europe). As hot as UMPCs are, and even though CNBC claims they're already in production (though, they say it will have a 12" display, which I really don't consider a subnotebook), this one still seems kind of unlikely. I hope I'm wrong, but 45% probability.

2. 3G iPhone announcement - AT&T's CEO says it is coming in 2008, and a 3G iPhone is a no-brainer. It will help Apple meet their initial sales goal of 10 million units by the end of 2008. 60% probability.

3. iPhone 2 - The reason they don't already have a 3G iPhone, according to Steve Jobs, is that battery technology isn't good enough to support it. So if you're going to release a 3G iPhone with a new battery, why not just announce the second version of the thing? The iPhone 2 would have more memory, an improved camera, and built in support for third party apps. These are all things that seem likely in future iterations of the iPhone, so if the 3G iPhone is coming, I think other improvements are likely. 60% probability.

3a. New iPods - As long as we're getting a new iPhone, we might as well get new ipods, right? Well, the iPod product line was just updated in September, so it is unlikely that it will be again so soon. But if there is an iPhone with a larger flash drive on the way, expect the iPod Touch to get the same treatment. A 128 GB SSD iPod Touch would rock. 30% probability.

Mac subnotebook concept image via MacRumors.com.

4. News about iPhone SDK - When the iPhone arrived, Stave Jobs said the Internet was its SDK. That certainly drove the creation of a lot of mobile web apps for the iPhone, and was a smart way to promote the iPhone's great Internet browsing capabilities, but it wasn't enough for many users. That's why Apple is planning a real SDK for the iPhone for February. With Google's Android on the horizon and Yahoo! today announcing an open mobile widget platform, the time seems right for the iPhone SDK. This one isn't really a rumor, so 100% probability that we hear about it at Macworld.

5. iTunes movie rentals - This one also isn't really a rumor. The New York Times sort of confirmed it two weeks ago and we've been hearing about Apple cutting deals with studios for 24-rental downloads via iTunes for weeks now. With Netflix planning a set top box of their own, it makes sense for Apple to bring rentals to iTunes (and Apple TV). This one is 100% probability - all that's left is the details.

6. The future of DRM - DRM is dead, but Apple wasn't invited to the party. Of the 4 major labels that have announced plans to sell DRM-free music, only one (EMI) is doing so with Apple. Universal and Warner are dealing with Amazon right now, and Sony BMG is being whacky and selling their DRM-free download in stores (yeah, I don't get it either). So who knows what the future of DRM at Apple is, but you can bet Jobs will address it with a 95% probability (and 100% probability he'll remind us of his memo to the music industry in the process).

7. Jay-Z and Apple form record label - One of the more fun rumors to crop up in the past week or so, is that rap mogul Jay-Z has joined forces with Apple to start a new record label. One would have to assume that a record label run by Apple would use digital distribution exclusively, which isn't necessarily a bad idea. Jay-Z has his hand in everything, and Apple does always end the Jobsnote with a musical performance... still, 10% probability.

8. New Cinema Display - We haven't had new models since 2004. The longest time between updates since the product line began in 1999. The time seems right for an update, perhaps with official Windows drivers? We'll, but I'll cheat and make this one a push: 50% probability.

9. The return of the Newton - There are many who think/hope/wish/yearn that Apple will release a tablet PC. Their multitouch tech would make for one killer tablet, and people are more responsive to non-PC computing devices now then they were 10 years ago. But there is a problem with this idea: Apple already has a PDA, and it's called the iPhone. So the probability of them launching a larger touchscreen device right now is 0% in my opinion, because it runs the risk of cannibalizing some of the iPhone/iPod Touch market. However, I'll give 40% probability to a touchscreen Macbook.

Steve Jobs photo credit: dfarber