So far, Apple CEO Steve Jobs has described Apple TV “coyly as a ‘hobby,'” David Zeiler blogs for The Baltimore Sun.
“One thing Apple has proven in recent years is that it often can succeed where others have foundered, such as with the iPod or its chain of retail stores. Solving video over the Internet is exactly the sort of challenge Apple relishes,” Zeiler writes. “Apple now can put its experience as a video vendor to use as it crafts the most user-friendly option for consuming video over the Internet.”
“The move to rentals makes complete sense, and probably was inevitable. In the years Apple has dabbled in offering video downloads, it has learned that fewer people want to own video than do music,” Zeiler writes.
“The deal with Fox shows Apple is serious about getting video right. The content, according to the Financial Times of London, will be new. It will be encoded with Apple’s FairPlay digital rights management software, but it should play on Macs, iPods, iPhones and on a TV via Apple TV. In other words, users will be able to watch the rented video pretty much on a variety of devices, unlike other services that restrict the user to a single device,” Zeiler explains. “Apple is even licensing FairPlay to Fox for use on its DVDs. This will allow the video to be ripped legally to a computer for transfer to a video-capable iPod or iPhone.”
Zeiler writes, “The millions of handheld video-capable devices Apple has sold over the past few years surely supplied a major piece of leverage in securing this deal. In the case of the iPhone and iPod Touch, one could download the content directly to the device through iTunes. What studio wouldn’t want a piece of this action?”
“Apple isn’t far from having a killer video strategy. It has most of the pieces in place already. It just needs to bridge the gaps and then integrate those pieces as only Apple knows how,” Zeiler writes. “Then watch how fast Apple’s ‘hobby’ disrupts the entire movie rental industry.”
Full article – recommended – here.
Rock on, Apple. Rock on, aapl.
Who couldn’t see this? It’s so obvious. I just hope they work out licensing deals outside the US faster than they have in the past.
“but it should play on Macs, iPods, iPhones and on a TV via Apple TV. In other words, users will be able to watch the rented video pretty much on a variety of devices”
Since I use a Mac, I do not have 1st hand experience, but with iTunes, will it not work on window’s PC’s
Why don’t they just include an iPod Touch sized version on the DVD as a bonus, instead of allowing it to be ripped?
Apple’s ‘hobby’ poised to disrupt entire movie rental industry
Now all what the world needs is more than 1-2 movies a year that are worth a sh*t. Enter Disney/Pixar?? Unless of course Apple can do the video answer to iTMS’s selection, and carry nearly every movie ever made.
Just hope Apple has the bandwidth ready for when new releases come out…
“In the years Apple has dabbled in offering video downloads, it has learned that fewer people want to own video than do music.”
Finally, someone who recognizes the situation for what it is.
No “Apple has failed at…”
Or “Apple was forced to…”
They’re simply learning as they go along and that’s why Apple TV was a hobby.
“Then watch how fast Apple’s ‘hobby’ disrupts the entire movie rental industry.”
Then watch the also-rans turn into hobby whores.
Perhaps the great convergence that has been talked about for years has finally come to fruition thanks to Apple ingenuity and their understanding of the customer’s needs. If they can just overcome the greed of Hollywood perhaps they can make this work !
I am sounding the death-knell for Blockbuster and Netflix. Movie Gallery is already on its way out.
On another note, Fox has just secured the best way for people to still be interested in buying DVD’s for the time being. Why just spend 25% of the price of a DVD on renting a movie to watch on the go when you can own the move + bonus material + iPod/iPhone/iTouch/”Apple” TV (sorry — posting from a PC — YUK!) hard copy of the movie formated already (no need to download and/or use Handbrake et al to copy to any device). I cannot imagine why other movie studios wouldn’t jump at the chance to be on this bandwagon.
Plus, you no longer have to produce physical copies to sell at discounted rates to Blockbuster/Netflix — just collect your revenues from Apple on the downloads without the additional expenses.
Benefits to the customers? No waiting for the mail, driving to the store, or having to choose another title because there are no more copies of the desired move at 9:00pm on a weekend at the rental store.
I will gladly bump my ISP speed for this…
“If they can just overcome the greed of Hollywood . . .”
Sadly, that’s a pretty big “if”. Just ask the WGA.
Including a ripped copy on a DVD is a great idea. There were several DVDs in the store this Xmas that had a WMA version on there. No good to me but an iTunes version would be of interest.
If think this would enhance DVD sales a bit. It will be interesting how Apple manage people sharing the files. I guess the first time you use it in iTunes it becomes registered and you have 4 more devices left to run the file.
It should be possible to have multiple formats too. Different resolutions for iPod and AppleTV/Mac/PC. Plus having both WMA and iTunes formats. Have a level playing field and see which format is better.
Rentals should be a big success since enough iPhones and iPod videos and touches have been sold by now. Pricing will be important for me. Anything over $2 will be hard to justify since I get 16 Netflix DVDs a month for $25. That’s $1.50 a shot. The convenience factor of instant access doesn’t seem important to me yet. That will likely change but at this moment Apple will need to be competitive with other rental solutions.
I believe they will include an iPod/iPhone formatted version on the DVD and not require copying and reformatting for the device.
I think the tactics put in place are brilliant……just genius! Patience played a huge part here..patience in getting Apple TV to do what it was intended to be. In a study….people that are patient are much more successful than those that are impulsive. Now I think its funny how some people thought Apple TV was the “Worst Tech device”….are now going to eat crow…after they find out it was a Hope’s box (rather than a Pandora’s box) waiting to be opened to unleash “hope” in the movie industry that will also define how rentals and other media are going to be handled at home in the future.
The Apple “hobby” TV will still be a loser this time next year. Mark my words, rentals won’t do much to help. Why would anyone pay $300 for a device to rent a movie. I can go into Wallyworld and by an HDMI DVD player for well under $75, and Netflix rules.
All the pundits keep using the word “ripped”. Curse the fool who first misused the word, and all the bozos who repeat it.
Does it seem more likely that the iTunes compatible format will be on the DVD, and you’ll just copy it?
My question is how will they protect it from illegal copying? Will the file on the DVD be almost playable, with something in the iTunes software making it playable? What about rentals/borrowed DVDs? Is there some “phone home” going on?
This announcement has raised more questions than answers, and all we get is morons frothing the same stuff, to no practical avail.
Remember, these details all are just speculation. No actual deal — or details — have been announced yet.
I’m sure the basics are correct, but some these details may not come to fruition…
The DVD and CD belong in the landfill right next to the 8-Track! Am I the only one that was lead to believe the DVD and CD were a little more stable then they turned out to be? Blockbuster, Netflix CYA! I would much rather DOWNLOAD. I haven’t watched anything I couldn’t download in at least a year…and it is a welcome change.
I don’t think they mean there will be other versions on the dvd, I think they mean iTunes will be able to rip you a drm’ed version to watch on your iDevices. Finally, fair usage is being given to the consumer, via Apple.
Just like iTunes was put in place to sell iPods, the video rental scheme will make the TV a very popular addition to any living room entertainment center. As noted, iTunes runs on PCs AND Macs, so anyone with an iTunes account, regardless of computer platform will be able to add an TV and enjoy rental downloads using their FrontRow GUI remote. I think this non-Mac or PC only solution will have to be attractive to studios as long as the pricing can agreed upon. Also, the news of Fairplay sharing is perhaps the biggest and most important news coming out. DVD’s allowing use on iPods is BIG!
“Mark my words, rentals won’t do much to help.”
Marked.
PzKpfW: Why don’t they just include an iPod Touch sized version on the DVD as a bonus, instead of allowing it to be ripped?
Because it won’t look good on widescreen TV? The deal benefits both sides. It’s good for Fox studio because it’s ripped with a DRM legally so the rip is not likely to be torrented (unDRMed rip will still be illegal). Fox can honestly say that they are responding to consumers’ need for format shifting to allow purchased DVD viewed in the way customers want. It’s good for Apple because FairPlay became the de facto DRM standard for legal DVD rips. It also lets consumers use the video with multiple Apple devices and strengthens [Apple]TV ecosystem.
And if you are Apple device users, it’s a win for you too because now you can legally do what you want with your purchased media, instead of breaking the DMCA law just to exercise your right to fair use.
One thing I want to mention. The studios have been in talks with Apple for a while on this. Anyone who has gone to Blockbuster recently will have noticed that the rental discs are no longer the full featured versions that were sold before. The discs themselves are gray. Not the full color covers they normally have. Also there are NO extra features.
This provides incentive for consumers to buy discs. Why buy the cow when you get the milk for free? Now consumers have to buy that cow.
Don’t rent movies.
Never cared for renting anything.
At times in life (usually when one is starting out on one’s own) it’s a necessity, but over the long haul it’s like flushing money down a toilet.
@ nobodi:
This isn’t about real estate. Most people only watch a movie once. So why pay 75 – 85% more just to keep a DVD laying around that you may not like, or may not ever watch again?
If movie theaters offered a deal where you could watch the movie once for $8 (like they do now), or buy it for $100, would you buy it? Doubt it.
What happened to all the “Apple needs to add a BluRay drive to Apple TV”? And “They need to add DVR capabilities”?
Everyone was all about that last week (which isn’t going to and shouldn’t happen).