Apple’s “It’s Showtime” event “announcements yesterday will have ripple effects into other parts of the industry,” Carl Howe, principal analyst, writes for Blackfriars’ Marketing.
• The new iPod pricing just cut off Microsoft’s Zune at the knees: Microsoft’s first Zune device is a rebranded Toshiba Gigabeat, which was planned to launch at $299. But with the dominant market share video iPod now starting at $249, that price is a non-starter. And since Microsoft is not the leader but the challenger in this market, Zune will have be be priced less than Apple’s offering to get any traction. Microsoft’s Robbie Bach is probably spending this week throwing darts at Steve Jobs’ photo, since he just added several million dollars of red ink to Robbie’s launch plans.
• Apple’s iTV pricing also whacked TiVO’s Series3 video recorder: With Apple’s iTV planning to launch at $299 and offering many (not all) of the same features of TiVO, suddenly, the decision to stick with TiVO may be a lot tougher to make. And at the very least, Apple’s pre-announcement will put a chill on the DVR market over the Christmas selling season and hurt TiVO’s pipeline of customers.
• Apple’s iTV isn’t Apple’s final living room play: iTV really exists just to support “legacy TVs” — that is, ones you already own. But the components that fit so nicely into a Mac mini case fit just as well inside an LCD display (as demonstrated by the 24-inch iMac announced last week) or a plasma TV — better in fact, since it wouldn’t require all the myriad connectors on the iTV. The fact that Apple didn’t fire a shot across the bow of TV makers like Sony and Matsushita yesterday doesn’t mean that it only intends to be a set-top box maker.
Full article here.
It’s so nice to read these articles when they’re written by someone who gets it.
Related articles:
Cramer: Apple’s ‘iTV’ all about ease-of-use; Apple shares are going higher – September 13, 2006
Apple + Living Room = Logical Marriage + Boon for Stockholders – September 13, 2006
The Register: Apple event more like ‘No Show’ than ‘Showtime’ – September 13, 2006
The Telegraph: Steve Jobs’ genius making people desire gadgets for which they have absolutely no use – September 13, 2006
The Guardian: Steve Jobs needs ‘a charisma download, Apple risks being left behind’ – September 13, 2006
Mark Cuban: Things that are special about Apple’s announcements – September 13, 2006
Apple’s ‘iTV’ strategy – September 13, 2006
How will Apple’s ‘iTV’ work? – September 13, 2006
The Observer’s iPod FUD: Apple iPod is ‘wilting away before our eyes’ – September 10, 2006
Apple eyes living room market with device codenamed ‘iTV’ – September 12, 2006
Analyst: Apple ‘s iTunes+iPod+iTV model ‘the gold standard for the digital home of the future’ – September 12, 2006
Analyst: Apple ‘s iTunes+iPod+iTV ‘will be hard for other players to match’ – September 12, 2006
Apple gives sneak peek of ‘iTV’ set-top box to debut Q1 2007 (with images) – September 12, 2006
Apple’s QuickTime stream of Steve Jobs special event now live – September 12, 2006
NFL and Apple team up to offer 2006 NFL game highlights via iTunes Store – September 12, 2006
informed:
Baby steps. Right now Apple is constrained by the underlying technology, i.e. internet and wireless bandwidth. But the resolution of iTunes video has quadrupled with the introduction of the movie store. Expect Apple to up the quality as it becomes feasible.
You can start watching a movie within minutes of the download starting. And most people don’t want extras.
I’m suggesting the name “TransTV” because it’s both transmitting and transcending traditional television content. Is Apple having a Name That Gadget contest?
MW “home”: Apple may someday be in everyone’s home.
I don’t know what the quality of DVDs are in your world, but it is common that 15% of DVDs I rent are too badly scratched to be read. If Apple can take away 15% of current DVD rentals this would be a huge chunk of change. So far, all I have read about is DVD purchases not rentals.
I also prefer to watch my film in wide-screen format. It frustrates me that my local stores sometimes do not carry DVDs in wide-screen. I hope that all Apple films are in wide-screen format or, at least, give the consumer a choice.
I don’t think that a discount of a few bucks will inspire some folks to patronize Apple’s’ “near HD-quality” films. The video content needs to meet or exceed current HD-quality soon for this service to remain viable.
This article should be required reading for all those “limeys” who were bashing the Showtime announcements yesterday.
This article should be required reading for all those “limeys” who were bashing the Showtime announcements yesterday.
all those limeys were trolling fer hits. what better way to do that than bash new Apple products in the tech news the day after the announcements are made? besides, if you’re familar with the British press you’d know that they’re bread n’ butter is made from stirring the pot.
if you must have IT news from across the pond go to The Register, they’re not always out to just miff someone off.
How about a new “mini mac” that includes iTV ??
Bibliotech,
TransTV is the name of a tv station located in Jakarta, Indonesia…
The author is right about Tivo, here’s why. I used to have a satellite system with DVR and it was great — except for the monthly bills. So, at the end of 2005 I dropped the dish and have nothing but a simple antenna. I had three TVs and I’ve removed one from my office — I seldom watch TV these days.
But I love South Park and The Daily Show with Jon Stewart. I will purchase these and watch on my 20″ iMac until I get the iTV device so I can stream them to my TV upstairs. If another show comes along that sounds good I may buy a few it as well. I control what I spend and when — I’m not making a monthly payment if I’m not watching anything.
This is why the DVR ability that everyone wants would do me no good — I’m not going to pay $50/month so I can record a few programs. I’ll just stick with buying the programs I want to watch. Sorry Dishnetwork and Tivo — I don’t need you.
Question for those more Technologically informed than I.
Any chance the iTV will be able to send programming from you TV, cable, radio, satelite, back to the computer where it could be recorded. I realized it might not be high quality but I’m still a VCR kind of guy. The bulk of the population doesn’t really care for HD video. Just look at how slow the conversion to digital has been. Most consumers are happy with the porducts they already have. I would love it if I could easily store the videos I record for myu family (several dozen tapes) on my computers hard drive just like I’ve done with my CDs.
Several years ago, i tried to convert a computer (windows) into a PVR. Yeah that went real well, the various software that came with the card was incompatible with each other. Result – lots of crashes. I gave it a shot for about a month and then removed all the software. I went without for a while, and then bought a ReplayTV. Maybe things are different now, but setting up a PVR in the windows world wasn’t that easy for me. (of course it was windows, which may have something to do with it)
Now I download any shows I want to keep or watch somewhere else from my ReplayTV to my PowerBook. I have made my own box set – minus the box – of a favorite show that will never be released to DVD. I also have an external hard drive full of favorite episodes.
So I am not at the moment looking for an additional PVR, but to be able to stream those movies I have to my TV that is what I am looking forward to.
Google “virtual dvhs” and you will see that Apple has had PVR capability for a long time. I have a ritual where I record all the super bowl commercials in 1080p. Have been doing this for 2 duperbowls running.
Despite what Steve Job’s said of completing the picture, there is still a missing piece that Apple has not talked about and perhaps won’t be unveiled until everything is a go.
iTV used the next generation of 802.11, perhaps the n version, since it needs a very high bitrate to do hi-def video. However, iTV will act as a receiver. Your computer will have to broadcast the video using 802.11n as well, but how many Macs and iMacs have this capability? If they’ll be built-in with the new Macs in the future, then there must be an upgrade path for older Macs (and PC) which should be a turn off for a lot of non-techie consumers, or else it’s a non-starter. I think there will be yet another device that is easy to set up next to your computer and PC.
Since Jobs didn’t mention this, I wonder how much more info is still kept as a secret in the iTV preview.
Zune: Not 100% convinced. For an extra $50, you get Wifi, you get an FM Tuner (:^), and–at least in theory–you get a similar ecosystem to the iPod. But I will agree that there must be some concern up in Mountain View today…
TiVO: No panic here. TiVO has something iTV doesn’t–broadcast/cable channels.
TVs: I’ve gotta admit, this one is interesting. I’m one of those people who thinks it’s a waste of time for Apple to get into the TV business unless they can add value. A Samsung LCD TV with an Apple logo on it (and an appropriate mark-up) is not something I would buy. However, a TV with a built-in iTV would be an interesting concept. Make sure it can hook up to my cable box, too, and you might have a winner.
“…and most people don’t want extras…”
Unfortunately, that is simply untrue. People not only want extras, they are willing to rebuy the same DVD to get them. That is why studios keep releasing “ultimate” editions, etc.
DTS audio is a must have for many. I know one person who won’t buy the movie without it. Anamorphic video is an absolute requirement on large widescreen TVs.
I realize downloadable movies are in their “infancy;” but DVD and televison technology are not. People are finally starting to purchase HDTVs and they want content. HD-DVD is coming fast.
Downloadables look stupid by comparison. They are a complete waste of money. An even bigger waste than buying crappy-sounding 128kbit songs from iTunes. Apple needs to address the HIGH-END, not the LOW-END!!!
I would much rather spend my money on HD-DVDs than a wireless connector box.
iTunes is far cheaper than TiVo and cable.
Here’s a price comparison between a TiVo and using iTunes with iTV. Over the course of a year, the TiVo subscription will cost $224. Cable is going to cost roughly $40 a month, so about $480 per year, depending on what channels you actually want. So, that is $700 a year for the TiVo solution. For $700, you can buy an iTV and 201 TV shows. Most TV shows have somewhere between 15 and 24 episodes per year, so let’s say an average of 20.
– You can watch 10 entire seasons of television and buy an iTV for the same price as paying for cable and a TiVo for one year.
– And, when you buy them from iTunes, there are no ads, so it takes even less time than it does to watch than watching on TiVo.
– And, you get DVD quality (or very close) as opposed to cable quality.
Here’s a two year comparison:
– TiVo ($369 – two year contract) and cable ($960) = 1300
– iTV ($299) and 250 TV shows per year ($1001) = 1300
The price keeps getting cheaper and cheaper as the time goes on. With the iTunes option, there is no subscription service to pay for. You pay for what you use instead of paying for a lot of channels that you don’t need.
Ok Just Going back to the Comment:
I’m suggesting the name “TransTV” because it’s both transmitting and transcending traditional television content. Is Apple having a Name That Gadget contest?
MW “home”: Apple may someday be in everyone’s home
Well the Name TransTV is already Taken from a Canberra Cable Telvision Company in Australia.