RUMOR: Apple to debut new distribution system, partners for feature-length, TV, and video in January

“Apple is planning to unveil a robust new content distribution system in January at Macworld Expo alongside its revamped media-savvy Mac mini, Think Secret has learned. The new content system and related media deals, which will include feature-length content, expanded televisions offerings, and more, will further cement Apple’s increasing lead in digital media delivery,” Ryan Katz reports for Think Secret.

“Apple’s new technology will deliver content such that it never actually resides on the user’s hard drive. Content purchased will be automatically made available on a user’s iDisk, which Front Row 2.0 will tap into. When the user wishes to play the content, robust caching technology Apple previously received a patent for will serve it to the users computer as fast as their Internet connection can handle. The system will also likely support downloading the video content to supported iPods but at no time will it ever actually be stored on a computer’s hard drive,” Katz reports. “This method, which will be every bit as simple and straightforward for consumers as the iTunes Music Store is now, poses a number of advantages over Apple’s current pay-once-download-once system, including saving users’ hard drive space and essentially providing a secure back-up of everything purchased.”

Katz reports, “Alongside this announcement Apple will also be rolling out a number of new partnerships with various content providers. Those Apple has not signed at the time of launch, one source speculated, will likely want to jump on the bandwagon soon afterwards, not unlike the vast number of additional record labels that were added to the iTunes Music Store soon after its inception.”

Full article with much more here.

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Related MacDailyNews articles:
So, where are all the new TV shows on Apple’s iTunes Store? – December 01, 2005
Fox executive says company open to a deal with Apple iTunes Store – December 01, 2005

63 Comments

  1. How nice, Will this idisk feature be in competition with the MS “LIVE” offering and also the Sun-Google offerings (assuming, they are coming up with something)?

    I mean if you can put your video’s and music and store it on idisk.. why not have PAGES be an online app too?

    I just hope they somehow figure out a way to make idisk a free feature.. i mean whats stopping Apple from tapping into online advertising and using that instead?

    Apple has done so much for the home user, with pictures and music. Why not take the next step and make an “apple” solution for the work user.

    itunes + ipod + idisk = all my songs in once nice package

    .pages documents + idisk (pages online for free) = all my documents

    why stop at .pages why not keynote and some (excel) killer they build.

    idisk can be so much more than just movies and music!!!!!!!! offer free online apps for the work user! Beat out MS and Google.

    If you built it they will come!

  2. sounds very interesting & somehow makes sense… I always suspect the recently released Bandwith Tuner has to prep up for something under way … Also I think Apple will beef up its .Mac membership benefits significantly, something to do with the iDisk storage & more…

  3. Rain Freak,

    It sounds like this will be more in competition with Blockbuster and Hollywood video than MS or others.

    Imagine never having to drive to a video store again, get any movie, any time you want streaming on any tv in your house via Mac Mini, iTunes and and a video airport express!

    2006, Apple takes on Microsoft, Dell and Blockbuster video!

  4. Jeff Says

    “Um, doesn’t iDisk require a .mac account? Sorry Steve, I just dropped .mac. I’m not shelling out $99 again so I can pay for movies that I actually won’t even get to keep.”

    First of all, if this is true, this is probably the only way to keep the major studios happy. You can watch it on your iPod or stream it to a tv via front row, but you never get the physical file in a way in which it can be copied.

    Secondly, Think of it as you are paying to watch the movie.. not own it.. Just like going to a theater or renting a video.. You watch it, but you don’t get anything physical.

    If the price is right.. say three or four bucks this would be awesome… All the old classics, all the independant films, new releases, any time you want them..

    If you really want to own a movie, you can always buy a DVD

  5. You know me — little to no respect for ThinkSecret and their horrible track record as of late. But this rumor’s different. If it’s wrong, it’s one of the most detailed delusions I’ve ever heard. Maybe this is legit. (Count me as a potential customer.)

    And ThinkSecret’s really betting the store on this one. If they’re wrong, they will look like utter fools. Never forget what happened to MacOSRumors.

  6. Isn’t iDisk only available as a part of .Mac? If so… how do those of us who prefer not to pay a $100 tithe recieve video content. People balked at Napster for there $15 a month fee for rented music… Well… isn’t this just an $8.30 a month fee for rented music PLUS the cpst of the actual download? For $3 a show or say $9 a movie (good guess?) I had better be able to download onto my computer or iPod. Instead of iDisk… why not DRM and let people have the fair use rights to their content?

  7. sounds good. but for the over 50% of us that don’t have or can’t get broadband (don’t even start with Satellite…too slow & too expensive), downloading to my HD is the only option. (takes laptop to internet cafe, download, enjoy later.)

  8. WHOA! Waitaminnit waitaminnit waitaminnit! iDisk?? It requires iDisk??

    Now, call me silly, but Apple doesn’t offer iDisk for Windows, do they? They can’t seriously be planning to offer this store as Mac-only. Can they?

    Yeah, yeah, I know: iTMS was Mac-only at first. Times were different then. iTMS was seen as a huge gamble, so other services weren’t jumping at the chance to do the same thing for the PC.

    But these days, with Apple being the icon it’s become, if they come out with some new wonder-service, everyone will want it, including Windows users. Sure, some of them will buy Macs, but others will use the competing services that will swiftly spring up to supply PC owners with what Apple won’t give them.

    If this rumor is true, I really hope Jobs knows what he’s doing. This would be an enormous gamble. The risk is some PC-friendly competitor coming up from behind and grabbing the majority of market share.

  9. Dan,

    Obviously we dont know all the details or even if it’s true..

    But this sounds like a way around DRM, and it could be the only way that the major studios will allow digital film distribution via iTunes. You have access to the file for your iPod or via front row, but you never get a physical file that can be copied.

    The iDisk and and the $100 .Mac subscription? Maybe Apple will allow anyone to have a free basic iDisk strictly for purchased movies. You would only get the full benefits of iDisk (backup and storage) if you purchase a .mac account… Who knows how this will work. It’s fun speculating though.

  10. Personally I won’t be interested in paying for content that I can’t play again for free. If I can’t store it or archive it, then I’m not interested.

    Still I’m sure other people will enjoy the service. For me, I still prefer to buy CD’s (at discounted prices) and rip them myself rather than pay 10 bucks per album at 128 bps.

    Same thing for video. Watch DVDs using Netflix and buy the ones I want to keep.

    Now if the new mac mini will co-operate with my cable box and have DVR and archiving capabilities then I’ll be interested.

  11. Lord Robin says

    “Now, call me silly, but Apple doesn’t offer iDisk for Windows, do they? They can’t seriously be planning to offer this store as Mac-only. Can they?”

    It sounds to me like Mac only is the whole point. Apple won’t be making money from movie distribution, this movie service will be to sell the new intel Mac Mini media computer with front row that by the way will dual boot into Windows!

  12. You do know that once you stop paying for your .mac account you lose the movies? Sounds kinda like a subscription service, the same type that many of you denounced when companies were offering music subscriptions. Ah, but since it’s Apple it’s okay.

  13. huh says “

    You do know that once you stop paying for your .mac account you lose the movies? Sounds kinda like a subscription service, the same type that many of you denounced when companies were offering music subscriptions. Ah, but since it’s Apple it’s okay.”

    Not if Apple offers a FREE basic iDisk strictly for viewing purchased movies.

    The article says an iDisk is required not a .mac account.

  14. Regarding questions above about iDisk for Windows – Apple does have a small utility to connect Windows XP to one’s iDisk.

    If this rumor is true and Apple does follow the model of streaming-only content delivery, what happens when I want to watch a TV show or movie I purchased using my iBook and I do not have an Internet connection? Am I SOL at that point? For example, my commute on the train every day is where I catch up on DVDs. Not being about to watch content I purchased from iTunes when I’m not connected to the Internet seems to be a big hole in the model.

  15. mike,
    Fine, I’ll revise it. Once you lose your internet connection, you lose all of your content. It’s the same idea as a music subscription, there are many ways in which you can lose the music that you supposedly own.

  16. Keep in mind that WiMax is coming soon. Part of the Intel deal? Apple has the retail stores and could broadcast from them or not? 2006 should be fun to see how this develops and matures.

  17. Steve just pulled a major Ballmer.

    I’ve never seen him so pissed off in my life. Nicks really done it this time. Steve is convinced this would make him the “Digital Messiah.” Now that conniving little dweezil has ruined everything.

    iLife 06 will be the major release at MacWorld.

  18. PCs might still be allowed in if for this purpose only, iDisk is made to work with iTunes for Windows. And maybe the iTunes account will come with iDisk storage for iTMS video.

    On the other hand, with a fairly cheap $499 device (Mac mini like), Apple could limit access to this device or a Mac. But is now a good time to do that, while they are still building H.264 format share? Will there be a better time later to have something be Mac-only, in an attempt to push further switching to a Mac. Or will Apple be content with PC users snapping up iPods and Airport Video Expresses, and just wait for the halo effect to happen?

  19. huh,

    this is digital distribution and it looks like it will require more than just a computer, yeah you will need either an internet connection and/or an iPod. No big deal.

    If you don’t like the idea, you can always buy a movie on DVD or pay $10 bucks to see in in a theatre. But remember, you don’t get to keep when you see it in a theatre either..

    And regarding iDisk utility for windows… Yes, there is one, but there is no Front Row for windows, which the article says is also needed.

  20. is anyone else here picturing huh standing in front of his TV, outraged that he has lost the TV shows which he “supposedly owns” because he pays for cable.

    Here’s a poser for you my clear thinking friend: do you think that people have different consumption habits with visual media, as against audio? Given this difference, might not a system which falls short of full ownership meet the needs and wants of most consumers?

  21. 2 reasons why Apple would offer streaming movies instead of hard-drive downloads.

    1. Time. If these movie files are expected to stream to Television than the quality is going to have to be much higher than the 320 x 240 offered now. The time required to download a 2hour film is considerably longer than your average Joe would be willing to wait.

    2. DRM. No content provider would agree to sign up if their was no DRM. No content provider will agree to sell a perfect digital copy of its product and give every user the ability to record and store it any way they desire. Streaming and iPod only gives the content owners some security.

    This has little to do directly with Apple and everything to do with multibillion dollar conglometares and their stock holders

    Streaming is the only way to make something like this work.

  22. Mike,

    Will there be enough room to store all the content you buy on the iDisk. At the moment we have 1 gig of storage. Even with H264 how much many movies can that hold.

    Maybe Apple will just keep a record of what you have purchased and will allow you to access it from their servers anytime you want. Certainly would save space in having multiple copies.

    Dotmac may also become free again for those who simply want the video service. Then you won’t get the extra gig space unless you pony up an extra hundred bucks.

    The price and video quality will be the issue for me. What will the movies look like on my HDTV?

  23. Neil,

    My guess is the physical movie will not be stored on your iDisk but as you said, a link to the file on Apple’s server. The article talks about a new caching system that Apple has patented….

    If the iDisk is required, it seems that they would have to offer a free basic iDisk strictly for streaming iTunes purchased content.

  24. Mike said: “Apple won’t be making money from movie distribution, this movie service will be to sell the new intel Mac Mini media computer with front row that by the way will dual boot into Windows!”

    And just why won’t Apple make any money from distributing the movies? You think they’re going to do it for free? hahahahaha! Don’t be so naive! The margins on selling (or one-time viewing) a movie on-line will be enormous, dwarfing those for a single iTune. Apple will cream the dollars in off this. Think of it as an online DVD rental and sales business but without the cost of having to keep any stock, or produce any DVDs or packaging. And you think they won’t make any money from that?

  25. Tommo_Uk

    Because when selling digital content (like movies,) the lions share of the profit goes to the content owners (the hollywood studios,) not the distributor (Apple.) The cost for Apple to provide this type of service is enormous, Apple may make a small profit much like they do by selling songs but the real money is in the hardware sales.

  26. Mike,

    Apple may not just be “selling” movies but streaming them for one-time viewing. The margins on this could be a lot higher: think of the DVD rental model. In addition, who is to say the same model will apply to movies as to music? And a 25-30% margin from a $4 movie is a lot more than the same from a 99c iTune. Make no mistake, iTunes is being positioned as a major profit centre for Apple.

  27. No,no,no you guys got it wrong.
    You buy the movie – apple stores it for you – it does not stay on your computer or iPod. You watch it via streaming (good luck on that quality) when you want to.
    It won´t be pay per view, but pay to own…as long as you watch on a Apple vehicle….

    This iPod video was just a marketing test (that´s why there are so few programs shows available) to show the movie and tv networks what is possible.
    The game will soon change.

    Apple will be Big Brother.

  28. I paid for iDisk and didn’t have the patience to get it to work (sloooww). I doubt if you’ll need a paying .Mac account for this – it wouldn’t fly; a limited free one would.

    The more I read how it’s supposed to work the weirder it sounds: it breaks the way you deal with music – “at no time will it ever actually be stored on a computer’s hard drive.” As if bandwidth were free; as if you don’t like to watch a good movie a second time shortly afterwards; as if you don’t want your kids to watch it in the car on that long weekend drive….

    Well, they got something up their sleeves. I hope it’s good and I hope Steve’s RDF can sell it, but I’m skeptical. The way I see it, if it isn’t a keeper then it’s a waste of bandwidth.

  29. I don’t know if it’s in people’s nature or maybe it’s the respective consumer models, but I have observed that while we collect and cherish our “physical” music collections, our attitude to films is less custodial. I myself listen to my own music collection and add to it often, but rent my videos or borrow them (and give them back). Maybe I’ll go to a movie or gig now and then.

    If I want to hear my favourite song, it’s takes 3-8 minutes maybe and I may repeat it often, if only for a while. Movies don’t work that way. It’s a different relationship.

    Maybe Apple et al have got this VERY right. Which do you have more of, vinyl/CD or video/DVD? ( Real question not rhetorical )

  30. From the article: “… Rob Chira, computer hardware analyst at Fulcrum Global Partners [says]… “I’ve always thought this Intel/Apple relationship was going to be much more than just chips in PCs. I think they’re playing off of each others strengths and I wouldn’t be surprised to see at least some part of this home entertainment/video content distribution model include some other technologies from Intel’s Viiv project.”

    Yeah, everybody “always thought” this – except no analyst or tech columnist was actually saying it, until now. I’ve been posting that this was Apple’s strategy for months, usually in response to guys like this saying ‘PPC couldn’t hang’ or ‘IBM dissed Apple’. And while I wasn’t the only one, now that the writing is on the wall EVERYbody’s a friggin expert!
    ” width=”19″ height=”19″ alt=”LOL” style=”border:0;” />

    Well, I will admit one thing – this iDisk plan is actually WORSE than I thought things would be. I figured our new Macintels would be locked down in the extreme, thanks to Intel’s hardware DRM, but that we’d still have some (very) limited ownership rights over the content. At least at first, until greed totally took over. But this streaming idea – if it can even work seemlessly more than 60% of the time – makes all of us nothing more than priviledged renters right out of the box. And, even worse, completely at the mercy of the quality of our internet service providers. Sorry – not for my hard earned cash, thanks.

    But this story – if true – does indicate one other thing I predicted months ago. Apple’s patented caching technology that all this hinges on basically is ‘Step One’ in forcing all the old non-DRM’d PPC users into an artifically fast upgrade cycle … if they want in on the multimedia/iPod enhancing goodness this new scheme promises, that is. There’ll be no other choice.

    Quote: “… it’s unknown whether the content system will be marketed as a Mac mini-only feature, which is unlikely but possible if it is dependent upon technologies in that system …”

    This guy misses the point; it’s not necessarily a Mac Mini only feature, but it will be an Intel architecture only feature. The upgraded Mini might have some singular capabilities of it’s own, but to the extent Apple plans on integrating the rest of their lineup in this deal is almost gauranteed to be a function of which computers will be equipped with those Intel TPM modules. Think about it – even with advanced caching to enable streaming content, there already are ways to digitally record the end result. TPMs will be integral to keeping an eye on what’s going on with your system, ensuring your compliance, and reporting back to ‘HQ’when necessary. Sheesh! I can’t help but think of how stoked I was to think a DVR capable MacMini was on the way – and now this mess might be the alternative. I suppose DVR still could be included, but I seriously doubt it. DVR completely undercuts what this plan would be all about.

    Well, I’ve said it before and I’ll say it again – Macintel’s were always about making money and gaining share on the back of a totally compliant and docile video mule. The very idea that a dual core G5 or G4 (and yes, the latter IS available and just as power efficient as upcoming Yonah) couldn’t have handled all this entertainment fluff is ridiculous. It’s no coincidence that all this content is coming in concert with the first Macintel product rollout – these hollywood studios weren’t going to go along with out Intel’s DRM. High performance computing? Ha! And consumer privacy and rights are even further down Apple’s list than many want to believe.

    Like someone said above, it’s only a rumor, but it’s a pretty detailed one, and completely in line with what Apple seems to want to do. Gads, I really hate it! I just hate the M$ alternative more. It pains me to say, but I’m left hoping the hacker community steps up their already prodigeous efforts and breaks this shit wide open (oh beloved Apple, look at what you’ve reduced me to). Maybe it will get Jobs to wake up and stop courting these media conglomerates to the exclusion of all else. Making things so damn complicated/expensive/intrusive for the average Joe/Jane is stupid. I want to own audio AND video, and ethically do what I want with it, without being hassled. I can do my own back ups.

    Funny – Jobs used to be a real hero on this, but seems to have sold his soul to the devil for this oportunity to be a media mogul (wow – video really DID kill the radio star). Anyway, while the hackers haven’t much of a chance of changing his mind, at least – maybe – they’ll provide a fighting chance for those of us who actually like COMPUTERS more than TOYS, and want to keep at least a few remaining rights as a private individual intact.

    That’s my Rant, and I’m sticking to it!

    MDN magic word: “true”

    True dat. ” width=”19″ height=”19″ alt=”cool smile” style=”border:0;” />

  31. I’m shocked that so many of you are ranting and complaining about a product/service that is just a rumor. How about waiting until an actual announcement before criticizing lack of features or how it works?

  32. Odyssey67,

    What a rant. I have to say I disagree with your perspective 100%.

    It’s not Steve Jobs who has become greedy, it’s us the consumers who have become greedy by thinking that we have a right to own and do whatever we wish with copyrighted digital media both movies and music.

    It is not Apple putting these restricitons on Digital media, it is the billion dollar studios who require these restrictions… and they are doing it because of piracy and hackers etc…

    In a perfect world we would be able to buy and download from iTunes any movie in High definition, with no restrictions, it would take less than a minute to download, it would cost 99 cents and we could back it up to DVD and do whatever we want with it…. But guess what, IT AIN”T GONNA HAPPEN.

    So stop griping about how this concept does not fit “your” every need. We really have no idea how this thing will work and what Apple has up their sleeve. Before we start bashing the concept, let’s just wait to see if it actually works. When it becomes available, if you don’t like it, you don’t have to use it.

    Call it renting, call it what you will. I think that as long as this business model works with a standard broadband connection and I have the freedom to take it with me on my iPod anytime I want, I’d be satisfied…

    We’ve become spoiled in the last 10 years, ripping movies and burning Cd’s to give to our friends or family anytime we want. But the bottom line is that it’s illegal to copy or reproduce copyrighted digital media in any way shape or form, even for personal use.

    Instead of complaining about this concept, think of the possibiliites this opens up. Apple is making the first steps towards revolutionizing the way we buy and watch movies, just like they did with music… Let’s be grateful.

    I am personally excited about the prospect of being able to buy and watch any movie ever made with the click of a button in the iTunes Store.

    We’ll find out soon enough if this really works, but I have enough faith in Jobs and Apple to believe that they will not introduce a brand new business model that doesnt’ “Just Work!”

  33. Now, now … (patting Odyssey67’s shoulder sympathetically) we’ll rant together after the keynote. Anyway, I can keep my wallet shut for five years (if necessary) until the Open Source, Shareware and Hacker communities deliver the secret sauce that liberates one’s soul. Save for a couple of iBooks, but that’s the next generation’s problem. So I won’t be able to do this and that, whatever, but when the time’s ripe I can buy the baddest Mac around. Again. Or whatever.

  34. Provided that the screen is a television and the video is DVD quality with no interruptions I think this will be a great way to watch movies at home. DVDs might be great for movie libraries but they are not better than VHS as rentals; in particular, many DVD players easily freeze with scratched discs and widescreen films look tiny on 4:3 televisions.

    I am a bit confused about the part of the article that mentions content being downloaded into the iPod. Would iTunes be bypassed for this process? The device’s success is partly due to being able to manage its contents easily with iTunes. Perhaps this content could be playable in iTunes while the iPod is docked.

    I hope that some kind of server backup will be introduced for all the iTunes purchases made so far. Any assurance that my music will be accessible a decade from now would be a good thing. After all, even backup discs can be unreliable after a while.

  35. If it is Netflix without the post office, great.

    If I have to pay for each movie, nope.

    Subscription should get you everything you can stream. Great.

    If I have to pay $4 for each movie… uh why. That could end up costing people $100/mo. Forget it.

  36. More power to the creative people!!!

    If you all will pay (instead of steal) our creative things (music, art, movies, etc.) I will make more and more and more for everyone to enjoy.

    Our creativity will soar when we are rewarded and you all can enjoy the benefits.

    Thank you and have a nice life.

    -We Creative People

  37. “When the user wishes to play the content, robust caching technology Apple previously received a patent for will serve it to the users computer as fast as their Internet connection can handle.”

    Really? What country? What’s the patent number?

    I (& Cringely) think Apple is riding on technology from Burst.com. U2 owns a chunk of it.

  38. This has been an extremely animated discussion about a product that (as yet) doesn’t even exist, and about which we are all simply speculating.

    Still, if what’s being discussed here is true, it almost certainly will be Apple’s answer to Netflix and Blockbuster online. Considered as such, it would work brilliantly. Here’s why:

    1) Consider your own DVD collection. If it’s anything like mine, you have a treasured dozen or so films, about twice that many collector-style box sets, and a ridiculous amount of films you’ve watched once or twice and collect dust. Under such assumptions, renting most films makes sense.

    2) We’ve been renting films for over two decades now and no one seems to care that you don’t really own them. That’s what renting means. Yes, you could (back in “the day”) dub off VHS cassettes if you had two VCR’s. Yes, you can still today copy DVD’s if you have the time/patience/desire and/or are geeky enough. But let’s face it: most renters didn’t do it with VHS cassettes, and I’d say even fewer do it today with DVD’s. No, you don’t steal the media: you rent a film, sit down with your significant other, enjoy a bottle of wine, and go to bed. In the two-five days you have a rented film, do you really bother to copy it? No, I don’t either.

    3) Apparently, Netflix and Blockbuster can make money by charging you $17.99 a month, while letting you have three *physical* DVD’s, each of which by its very nature can only be possessed by one customer at a time, while paying to post said single-person-per-use-items to and from your house. They wouldn’t both be doing it if the model were a failure. Now, don’t you think Apple/studios could make money renting you *virtual* films at the same or a slightly lower price, while offering you the benefit of immediate gratification? Oh, only a mint…

    4) This whole Intel TPM thing is overblown. Do you really think that Apple would release a product by which they plan to overtake the film-renting industry which, to use, would require hardware which precisely zero of their current customers owned? No, I don’t either. Get over it. TPM is the future, but it’s not the present.

    5) Take a deep breath, and start renting your movies from Apple.

    MDN magic word is “fall,” as in don’t fall for ridiculous conclusions.

  39. 99c for a song, $1.99 for a soap and $2.99 for a smoothie (sorry, streamed movie!)

    Lets just imagine Apple have fixed the DRM and streaming pain issues. I would love being able to log into my ,Mac account anywhere in the world (with cable or WiFi) and watch any of my 100+ iTMS movies.

    Lets also imagine I can choose to download the cached pieces of up to 10 movies to iPod with video and watch them way from the internet or at a friend’s house who has only dial-up. Way cool!!!

    But if I really want the extras (deleted scenes, commentaries), I’ll buy the DVD and maybe Handbrake it to the iPod.

    Is this video stream what a ‘Vingle’ is?

    MW: ‘policy’ as in ‘ the policy caught the thief.

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