“Technically, the Apple TV may be simple, but its effect on the TV industry will be anything but,” Blackfriars Communications’ Carl Howe writes for SeekingAlpha. “Why? Because TV business models that have thrived for the past thirty to fifty years that relied on:
• Advertising-supported TV
• Prime-time programming
• Bundled content
Howe writes, “Apple TV is about to attack the fundamental assumptions underpinning the TV business just as the iPod cut the legs out from under CDs and radio stations. How? Because with Apple TV combining the flexibility of the Internet with a living-room, big-screen experience, consumers now will:
• Vote for programming with consumer dollars
• Watch what they want, when and where they want it
• Enjoy TV programming a la carte
Howe writes, “In my view, cable companies like Comcast and Time Warner and TV-deploying telcos like Verizon and AT&T are going to be hurt the most by this Apple’s new entry into the living room. Their entire business models are predicated on ever-rising average revenues per subscriber (ARPUs). But with average cable bills rising past the $100 mark and actual TV watching declining due to the flood of too many channels, consumers will defect to Apple’s a la carte pricing model where they can control their monthly bill.”
“Will we see these business changes overnight? Not a chance. The iPod took five years before it was an international phenomenon. I expect Apple TV to have a similarly long gestation period before it becomes a icon in living rooms and a part of the American consumer lifestyle… Apple TV may be a simple consumer electronics device, but it is one that will, nonetheless change the TV business… Cable and telco executives will be asking themselves, “How did we let this happen?” The answer to that is simple: they gave the customer everything they could think of, while Apple TV gave customers what they wanted. And in business, that’s a huge difference.”
Much more in the full article, including discussion of each of the bullet points listed above, here.
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I agree with the article, along with a lot of similiar articles, BUT, this is in its infancy, the model has been built, and it will take time for all of this to happen. Kind of like how the iPod just exploded a couple years after it was already around, the aTV will prob do the same.
My point too Nick, I just hope they get content to Europe faster than they did with music
This is awesome. I remember when Apple first got TV shows in iTunes. So many people didn’t get it. So much whining in these forums. Now, I think, people get it.
I want my iPhone… Arghh.. so many months more to wait!
My cable bill is only over $100 because I get broadband interweb from Comcast.
Apple Vision (AV)
Why can’t the content providers get their acts together and do worldwide deals with Apple??
iConfused. What does it do?
Right to the point. AppleTV is going to change the TV industry, simply because it will boost the webTV offering, which will put an “End” flag onto traditional TV pretty soon. It’s that simple.
What prevents aTV streaming across the intarweb to my iPhone, ala slingbox? A: Probably nothing. So an 8 GB cap on internal storage doesn’t mean a thing. aTV + iPhone == killing eleventy birds with 2 lickable stones.
the best closing
they gave the customer everything they could think of, while Apple TV gave customers what they wanted. And in business, that’s a huge difference.
A USB-based Blue-Ray drive (same size as aTV) that can plug into the TV or a Mac, and can play regular DVDs plus HD disks would be just the ticket.
Plug in via USB that is…
and actual TV watching declining due to the flood of too many channels
Actual TV watching is declining:
1. Because there isn’t shit to watch, and:
2. Nobody has time to gather around the TV at the appointed hour anymore.
FWIW Apple TV also has the potential to kill the movie theater (cinema for you Brits <g>). Who wants to pay extortion to sit in slimy seats, where you’re always next to some asshole who ruins the show? I’d rather wait for the home release.
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Cable and telco executives will be asking themselves, “How did we let this happen?” The answer to that is simple: they gave the customer everything they could think of, while Apple TV gave customers what they wanted.
Great closing, but let’s clarify it a little:
The cable/telco executives offered everything their companies wanted to sell, while Apple TV offered everything the customer wanted to buy.
Big difference.
Somehow, the name iTUNES doesn’t really fit anymore. Tunes means music. I think Apple needs to rebrand it at some point. It does so much more than music.
I had no interest in the Apple TV, but the more I look at my cable bill, the more I realize I can save money by going with the Apple TV and dropping my cable including the DVR. My wife and I watch about 5 shows. We could easily buy the season pass for each of those shows and still have a ton of money left over.
Somehow, the name iTUNES doesn’t really fit anymore. Tunes means music. I think Apple needs to rebrand it at some point. It does so much more than music.
I dunno, i.e General Electric does a lot more than… electric.
Once a brand is established, it’s hard to change.
Having to market “iTunes is now…”, might do more harm than good. Not to mention the inevitable “Service formerly known as iTunes” sneers.
iMedia perhaps?
“Welcome to iMedia, you may virtually drive in to our iMovie theater, or go to our iTunes stage….or go to our iTV room, …..all in one place….your Mac….”
…….
(Apple: you may use this idea freely…just thank me…jajajaja)
Well, Apple TV may be a hit in the USA, but it won’t be a hit in Australia. At least not yet.
A simple check of the iTunes online store shows that the only video content you can download are music videos at A$3.99 each. There are no movies, no TV episodes and no video podcasts…
I imagine the same applies to most other international markets right now…
What’s wrong with Apple Vision other than it was used a million years ago for an Apple monitor?
Yeah, cut the middleman out. I don’t want no advertising, no advertising wasting my time means I can research what products I want. Shove advertising in my face and you’ve lost me as a customer, I have a fair idea of what advertising costs. Advertising is just for crap, if the product was any good I’d have heard about it anyway.
One of the simplest, easiest regulations that would benefit the world is that every advert should have it’s cost price clearly displayed. Peeps would cut down buying junk pretty quick.
The Brits have an appropriate satirical phrase, “never mind the quality feel the width”. More choice isn’t freedom, it’s quite the opposite when most of the choices are BS or BS, you waste your time digging through the sh!t. No advertising would give everyone at least a couple of hours per week to think about governance, democracy, that kind of stuff, rather than trusting corporate shills to look after things for you, as if they would have your best interests at heart.
To accomplish this there will have to be some very high bandwidth available for downloads and they will have to be in HD.
Do you really think that the cable and telco companies are going to make that kind of bandwidth available? Not going to happen. One reason is because they can’t never mind that they won’t want to. Sure Apple might make a bunch on Apple TV but it’s not going to change the industry.
You can’t compare the ipod to Apple TV if for the only reason that the ipod/itunes had a means into all of our homes. Apple TV does not have that same access for mass adoption because there isn’t enough bandwidth for HD programming for the masses. The internet system can’t handle it and that’s not changing anytime soon.
@Greg M
You might be right, but I think you are probably wrong.
Just this week the Australian Labor Party, the likely winners of the next Australian federal election, announced a huge investment in broadband at speeds up to 45 times faster than the current ADSL standards. The US carriers will do the same – or lose the market to someone else. Anyone can lay fibre after all… If Apple can become a music distributor, then anyone can become a Telco…
In the meantime, Apple iTunes / Apple TV will download stuff in the background – it doesnt need to be in real time and it can still be HDTV. ITunes is already causing a challenge for cable TV with so much programming available and NO subscription charges. Movies will follow soon enough…
Remember Apple is always ahead of the pack. They seem to be able to carve a new strategic path a long time before anyone else recognises it…
And the iPhone / Cingular linkup is interesting. The network is obviously key here. You can bet bandwidth considerations are already part of the mix…