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Apple With Modest Expectations for 'iTV' and TV Show Rentals?


Bloomberg Businessweek's Peter Burrows writes a follow-up to his earlier report disclosing Apple's plans to announced 99-cent TV show rentals alongside a revamped Apple TV and updated iPod touch at a September 7th media event. The new piece focuses on Apple's ambitions with the video rental service, which Burrows notes is not expected to be a game-changer in the same sense that the iPod and iPhone remade their markets.

My sense is that Apple doesn't plan to overplay its hand, by making too much of this mobile TV opportunity. This isn't another "revolution" in the making. Even if Apple wanted to try for that, studios have all but nullified the possibility by refusing to let Apple sell subscriptions to your favorite shows, to be watched whenever and as many times as you like.

According to Burrows' source, Apple will primarily pitch the video rental service for "catch-up viewing", allowing users to watch episodes of their favorite series they may have missed or to try out shows recommended by friends.

And despite the rumored $99 price tag for the new Apple TV or "iTV", even Apple CEO Steve Jobs himself is reportedly holding only modest expectations for the device's sales potential.

Even with the refresh, Jobs isn't convinced the new version will be a mainstream hit, says the person familiar with Apple's plans. Most consumers aren't ready to cut the cord to their cable company, or put up with the tech-nastics required to stream content from the iTunes collection on their PC to their living room big-screen TV. In other words, it's a product that at best will delight some of the "hobbyists" that have always been interested in the product.

Rumors of a TV show rental service from Apple surfaced early last month as an alternative to the company's original plan to work with the networks to offer a monthly subscription package.

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19 months ago
It would be unrealistic to think it would change the market in the first place. It will be one more thing that increases traffic in the iTunes Store.
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19 months ago
I would think most hobbyists would prefer a more robust combination of something along the lines of a Mini + Plex.
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19 months ago

It would be unrealistic to think it would change the market in the first place. It will be one more thing that increases traffic in the iTunes Store.


Tell that to those nerds who were orgasming en masse over the recent rumors.

Ooooh! I'm going to get rid of my cable!!!1!

:rolleyes:
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19 months ago
Going in with that attitude, of course it's not going to be a hit. :rolleyes:
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19 months ago
and how is this better than Tivo or my $13/month time warner DVR?
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19 months ago
If I could get my favorite sports team's games live on my ipad in a quality that is even half way decent I'd cut the cord with the cable company in a second. I'm soooo tired of paying for channels I have no intention watching, and with out the ability to pick the channels I want a la carte, I refuse to pay the fees that the cable company want for the myriad of crap they are serving.

I like the idea of the 99 cent tv show rental, although I'd rather have the subscription option described here.

In the meantime, it's watching sports at my favorite watering hole, and running up a bar tab that is probably equal to, if not greater than my cable bill :rolleyes: At least I've got a buzz...
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19 months ago
It's also a market with so many existing players... Apple needs to make a presence in the living room before it even thinks of taking a large piece.

The point of it being for 'tech savvy hobbyists' I think is adequate. I know there are a few of us who are using dedicated G4/G5 towers specifically for streaming headless. For me however I do have to re-start iTunes or AppleTV on occasion. The average consumer would not be so forgiving when they have to troubleshoot a problem.

That being said. A $99 (highly mobile) wireless adapter that can take advantage of the iTunes store, and stream from your MacBook or iMac, would be a sweet spot for many consumers I think. It's not a game changer but it is getting a footing.
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19 months ago
It's not an attitude problem on Steve's part, it's the reality of the network business. They do NOT want to cooperate with Steve for they fear he will become a chokehold on their business. So the networks will resist and dither away more months and years while BitTorrent nullifies any argument they want to make about Apple.

The movie and TV business is where the music business was in the late 90s. Whether they wake up in time to avoid the fate of the music companies is open to question. They still have their broadcast (TV) and theatrical (movies) model that brings in money, but the home market is ramping up fast and they need to get on the truck that is barreling down the highway or else be left behind.

They could do a lot worse than cooperate with Steve and give people a reasonable alternative to BitTorrent.
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19 months ago
I think that history shows that they can only be cautious in this market. I still reckon that promoting apps that stream that are owned and controlled by the content provider will be the best way of keeping most interested parties happy. Buying from iTunes or even renting will always seem the equivalent of buying/renting a dvd rather than a replacement for broadcast like a streaming pay per month or ad supported service would be.
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19 months ago
"Most consumers aren't ready to cut the cord to their cable company......"

Really?? I sure am! The prices are insane if you want to watch only two or three shows on two or three channels of the hundreds they force you to subscribe to.

If Apple do this right they can actually revolutionize the TV industry, but this report makes it sound like they aren't really thinking too hard about what they can offer and how they can offer it.

I'm sure there are also tons of independent film makers, short story producers, etc. that would love the opportunity to throw their content onto an iTunes audience. .......similar to the way you can find way more musicians/bands on iTunes than the local shop.
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