“It has already revolutionized the music business with its iPod device and iTunes music store,” Paul R. La Monica writes for CNNMoney. “Now will Apple help kill the television’s industry historic reliance on the 30-second TV commercial to help pay the bills?”
“Apple is expected to begin shipping its new Apple TV device sometime this week. The product, in theory, should make advertisers nervous since it will allow consumers to easily transmit TV shows purchased on iTunes (which do not include commercials) from the iTunes library on their computer to their TV set for viewing there,” La Monica writes.
La Monica reports, “‘There’s no question that one of the problems with the traditional 30-second TV ad is digital video recorders. The whole market is under threat from TiVo-like functions. And it’s going to get easier to avoid commercials with Apple TV,’ said Tim Wilson, a general partner with Partech International, a venture capital firm that is looking to invest more heavily in online video and other forms of new media.”
“Advertisements during TV shows, long considered a nuisance by many consumers, are no longer required viewing. ‘The role of advertising is shifting. It’s about giving consumers control of what they want. Apple TV and other devices are clearly doing that,’ said Mike DiFranza, the chief executive officer of Captivate Network, a company owned by newspaper publisher Gannett (Charts) that runs ads on digital screens placed in elevators in office buildings,” La Monica reports.
Full article here.
[Thanks to MacDailyNews Reader “Nathan” for the heads up.]
Related articles:
Apple TV manufacturing ramp up to begin as early as today – March 12, 2007
Why Apple TV is more important than iPhone – March 12, 2007
Apple TV concept may eventually catch on with consumers – March 12, 2007
Apple CFO talks Apple TV, iPhone, Leopard and retail (link to full transcript) – March 07, 2007
PC Magazine: Why Apple TV matters – February 23, 2007
Bear Stearns: Apple TV and iPhone have changed the Apple story for the better – February 21, 2007
Deutsche Bank: Apple TV could take 30% of set-top box market within a few years – February 21, 2007
How do Apple TV and Elgato’s EyeTV work together? – February 16, 2007
Apple embraces casual gaming; iPhone, Apple TV to join iPod as gaming devices – February 09, 2007
Former GM of Microsoft’s Xbox Live Arcade: Apple TV to become video game console – February 08, 2007
ZDNet’s Graham: Apple TV hits a number of sweet spots, poised to make a big impact – January 25, 2007
Is Apple out to kill cable television? – January 25, 2007
RUMOR: Apple TV sales blowing away Apple’s internal expectations – January 25, 2007
Steve Jobs: Apple TV is the ‘DVD player for the 21st century’ – January 22, 2007
Apple TV beats out iPod, hits top spot on Apple Store sales chart – January 19, 2007
Report: first batch of 100,000 Apple TVs to ship this month – January 11, 2007
Steve Jobs moves to control the living room with Apple TV – January 10, 2007
Analyst Bajarin: Apple’s iPhone and Apple TV are industry game changers – January 09, 2007
Apple premieres Apple TV: movies, TV shows, music & photos on your big screen TV – January 09, 2007
RUMOR: Apple may enter video game market – December 05, 2006
Could Apple become king of game consoles? – September 26, 2006
First post?
Eventually someone’s gonna have to pay for ’em shows.
What’s a 30 second TV ad?
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God bless my DVR!!!!!
TINSTAAFL
…and there was much rejoicing.
“yea.”
@ TowerTone
That’s why we pay for the shows. The free lunch came with spam, and I don’t like spam.
I DON’T LIKE SPAM!
LOL… the death of TV ads?!?! I very much doubt it… There will always be some form of TV advertising, whether it’s a interactive hybrid of what you see today or sponsorship. I can’t see people buying the Today Show or their local weather from iTunes.
Slightly off topic, but I think one Jobs needs to do though is give people the option to rent movies. People rent way more movies than they buy, at least imho. If you had what would amount to a Netflix On Demand THAT would be a killer app and a half.
Shh, don’t cause a fuss dear. I’ll have your Spam. I love it!
You’re already seeing new types of advertising already. Advertising bars at the bottom of television screens are becoming more and more prevalent. As a personal view I find them more irritating than ad breaks because they take up your precious screen space.
In this country we suffer from programing delays (where overseas series are delayed for months) and many viewers have got to the point where they won’t put up with high-handed approach. Increasingly Australian viewers are downloading T.V. shows from torrent sites. Likewise when you get stations jerking viewers around with scheduling times the free-to-air networks are in for a long overdue payback.
However, as an individual viewer, I already have free-to-air stations, cable television and the last thing I’d do is pay for a T.V. show especially since I’m already paying for cable. I’m not saying that Apple TV won’t be successful I’m merely pointing out that many consumers won’t pay for television shows when they can illegally download from torrent sites for free, watch cable broadcasts AND if they wish, record digital programs from digitital television onto their computers (if they have the hardware) and then burn them onto dvds to watch on their televisions.
True to a point. Hopefully it will at least kill off bad spots. IMHO some of the best content on TV is in fact the commercials and not always the show thay are inserted in.
This is one of the arguments for Sat radio. “No commericials!” That is in fact one of the reasons I will not subscribe to a Sat radio service. I listen to a radio station here in WNY broadcast out of Toronto Canada. CHUM FM. Absolutely terrific radio…. one of the best part of the station is the commericials. Most are very good some are brilliant, hiliarous even dangerous since they grab your attention if you are driving. Really good stuff! In fact I heard an Apple radio spot there the other day. It was not just an audio track from a TV spot either…..It was very good! Only heard it once.
So if Apple could raise the bar for the quality of the commericals I have to watch to subsidize the cost of the “free” content….so be it!
TR
@ Eric the Half Bee
Could you stop by and confuse my cat?
Since when has buying content guaranteed that there is no advertising on it ?
I used to buy VHS tapes and now DVDs and they have adverts for other movies on them. They irritate the hell out of me, particularly as they are seldom for movies that I would buy and they can’t easily be skipped.
I would happily pay a fair price for an on-line movie with no advertising, but I have no doubt that whatever I pay, the greedy cretins at the studios will be adding additional advertising onto that content.
Chrissy,
You paid for the right to download it.
When AppleTV and others actually pay for the production minus advertising revenue, cost per show will go up.
The money has to come from somewhere.
Eric
Wake n bake?
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Advertisers will always find a way to push their stuff in our faces. In some European cities (Copenhagen, for example), corporate logos are plastered on the sides of office buildings. Here in DC we’re starting to see ads painted on the sides of our previously clean subway cars, and Target has posted a series of ads on the insides of the tunnels that flash strobe-like as we pass by. On some DVDs I’ve purchased one often can’t skip past the “previews” of other movies. One is tempted to say, “Oh, boo hoo” to video producers who complain they have no way to push their ads when we’ve already *paid* for the privilege of *not* seeing their ads.
I’d rather have ads than be inundated with endless, schlocky product placement within movies and shows. Demolition Man comes to mind. Unfortunately.
I turned off cable a year ago. Very expensive. Very little quality content. I subscribe to netflix – most tv series are available on Dvd, and I buy 2 shows from iTunes. Cable cost me $1200 per year. For $1200 I bought my life back.
Anybody wanna buy a year and a half old 50″ Pioneer Elite plasma?
Barely used.
What would become of the fabled PC/Mac ads?
Maybe they could have some kinda buddy show. Ya know, like Starsky and Hutch, but instead of driving souped up cars, they drive bleeding edge innovation. Well, the Mac any way.
(Sorry, it’s all I got this early in the day…)
My favorite commercial is… MUTE
Commercials are the scourge of TV.
MDN Magic Word: ART … commercials? NOT!
Ads will still be there. You will be able to choose what subjects you would like to see ads of, and the advertisers will pay the 2 bucks for your shows if you do not mind the selected ads.
We will be the ultimate targeted audience and I guess this is what google is working on with Apple.
Free TV when we want it. Or paid if you do not want ads.
Roel
@ TowerTone
But with Cable TV, I’m paying for 100 channels of crap. I only watch 1 show. If the cost of the Daily Show goes up I can handle it, it will still be cheaper than paying for Cable.
AAAAAND.. lets think about how the music industry works. I’m just paying for the content I use there, and it’s not outrageously expensive. And movies, too, come to think of it. A dollar for a song, 2 or so for a TV show, and 10 for a movie, seems fair to me. Somehow movies and music cover their costs, why not TV?
Cable is dead. Know it, Learn It, Live It.
Alec,
You were paying $US1200 p.a. for cable. What a rip. Crikey, I’m paying $AUS750 p.a. but like you there’s very little quality content. Damned if I know how people could get addicted to cable unless they have no life.
Chrissy
Well, in a perfect world they would, but the vast majority of money for production comes from CDs, theaters, and commercials.
If you are watching an episode of ’24’ and only 10,000 others use iTunes to buy it, I’m afraid those cars blowing up are gonna end up being Hot Wheels with a firecracker under it and some lighter fluid sprayed around cuz Kiefer ain’t droppin his pay.(not that he should-“Drop the weapon NOW!”)
I hope you understand what I am saying here. I just don’t think enough is made from the likes of iTunes YET to be able to drop the ad revenue.
Hey, looks like y’all might see some sunshine today. Enjoy.
Raining in Freemont. =(
Big whoop. We cannot download TV shows in the Canadian iTunes store. When is THAT going to change Apple? I would puchase all season 3 episodes of Grey’s Anatomy if I could.
And before any jokes are made…yeah I am a sensitive contermporary guy.
Raining in Montreal.
” . . . those cars blowing up are gonna end up being Hot Wheels with a firecracker under it and some lighter fluid sprayed around . . .”
CRAP ! ! ! So, you’re saying my new movie is going to need some special effects upgrades? I blew most of my budget on the green room and spray-on costumes. Oh yeah, and a Tor Johnson look-alike. That was key.
This won’t happen unless Apple offers a rental service. iTunes movies and TV shows are expensive, and I doubt in the long term that people will switch to this format over traditional TV sources, unless they can rent. Cost, quality, and content are the barriers here. You’re paying more for less quality and a small selection.
It’s just speculation with no argument being made as to how it would actualy happen. There is potential, but not in it’s current form.
Add all movies and tv shows
Add HD
Add rental (say 3 in a que)
Add simple software to manage it
Now you have true view-on-demand and traditional TV is dead.
I’ve been skipping tv ads with my DVR for years.
MM
I still have a few worries about that model. Suppose in the second year of a good show, the subscriptions fall off. If it were Seinfeld, would they have to kill off Kramer? Pay George by the word and try to shut him up? Have Elaine get knocked up by some sailors and then join the Navy to figure out which one?
It’s hard enough to keep a good show funded. Remember Buffalo Bill? The Tick? Almost Perfect? James at 16?(?) And who could ever understand the loss of Arrested Development?
Then again, maybe it would work to their advantage.
Chrissy
Fleamont ?? .. Sheesh !! … So whats the latest on the A’s comin to town ?? .. any new news ?
TMF
Tor Johnson. Just that name makes me laugh. Like Anita Phister.
So, anyhow, you’ve hired Geoge Steele and…..
@ oh my
I have no idea. I care about team sports about as far as I could comfortably pass a pineapple. I wish all the big teams would get out of town and they would use these big beautiful stadiums for something useful. Like raves. ^_^
-c
Funny but strange:
An intarweb reference to
“Minute Women of the U. S. A., Anita Phister, 1960 .”
Go figure.
TowerTone and Twisted Mac Freak…
Don’t laugh but Anita Pfister is a gynecologist. How did you know?
http://www.doktor.ch/frauenarzt/8444.html
Sunny here in Dublin, Ireland
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“Advertisers will always find a way to push their stuff in our faces. In some European cities (Copenhagen, for example), corporate logos are plastered on the sides of office buildings.”
Or in New York City, where electronics companies put giant iPhone ads on the side of their glass cubes.
There was a time when tv was basically free and putting up with annoying commercials was the unavoidable price of this otherwise free service. But tv hasn’t been free in a very long time. Cable and satellite subscriptions certainly aren’t free, which begs the question: Why do we keep getting more and more of these stupid commercials?
Thank goodness there’s finally an alternative! It would be even better if viewers could simply skip the commercials in recorded programs instead of having to fast-forward through them. Advertising is a blight on the landscape of the mind.
Buster-
So if she married Harry Beevers…..
she would be
Anita Pfister-Beevers, ObGyn?
Mrs. Harry Beevers?
“oh, look, here come the Beevers”
“I hear she’s handy around the office”
“Need a pap? Leave it to Beevers”
TT
I think you meant …
“I hear she’s handy around the orfice”
Right! Too silly, too silly. Put some discipline into those chaps Sergeant Major!
I’m afraid I don’t understand your banter.
I don’t know if this is still true, but years ago TV advertisers in Europe could only advertise at the beginning and the end of the shows. I wouldn’t mind advertising done like that. But the advertisers have already lost me — no TV, bittorent/xdonkey and a DVD drive in my computer.
See, the thing is that advertisers really contribute nothing to the TV shows themselves. Nobody really cares for the ads and nobody will miss them (much) when they’re gone. They’re in a very unenviable position and technology has just yanked that rotten floorboard out from underneath them.
My problem with watching shows on iTunes is that I can’t as easily hop over ads as I can with Eyetv’s interface. So if the Apple Remote does not start including a 30-second hop option, I’m going to get really annoyed really fast with the Apple tv..
Do not rejoice too fast, advertising is a sly beast. Advertising will quickly change form to adapt to the new paradigm. For example, if they can’t reach an audience with 30 second breaks, then they’ll have to increase the amount of product placement during the shows. How can you fast forward the commercial when it has become an integral part of the story? I’d hardly call that improvement.
It’s crazy to think about what TV advertising really is. Most people think of TV show as products that are made for consumers. But look at the money flow: TV viewers are not paying for anything, advertisers are. So why do advertisers pay large sums of money to give us free entertainment? What kind of economy is that? The TV show are not the commodities being sold here. It is the viewer. The TV shows are not being bought and sold, it is the viewer who is being sold to advertisers. Just one of the many reasons why I hate TV ads.