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. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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?

  6. 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.

  7. 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?

  8. 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.

  9. 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?

  10. 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.

  11. 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?

  12. 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.

  13. 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.

  14. 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.

  15. 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.

  16. 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 )

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