Will new iPod incite a video revolution?
Got a desire for "Desperate Housewives" while on the "L"? Then Apple Computer Inc. has something for you: a video version of its hot-selling portable digital music player.
But in unveiling its new video iPod on Wednesday, the company did more than show off its latest gadget. It also highlighted, in dramatic fashion, the seismic shifts taking place across the media spectrum. The days when what we hear or see is pre-determined by a static program schedule are going by the wayside.
Instead consumers, more than ever before, are firmly in control of their media, choosing content that is "liquid" and can flow through multiple devices.
But that freedom comes at a cost: $1.99 per video from Apple's iTunes site. That's a dollar more than Apple's highly successful music downloads--a business that reshaped the traditional music industry almost overnight.
"I think this is going to be a real ground-shifter," said Carl Goodman, director of digital media at the Museum of the Moving Image in New York. "It could completely alter the relationship consumers have with their video media. If you're talking about the DVD player or the VCR, those are toast. "
And that has huge implications for everything from television and advertising to movies and videos.
In fact the ABC television network wasted no time jumping aboard Apple's bandwagon. Episodes of the network's hit shows "Desperate Housewives" and "Lost" will be available for download the day after they air on television, Apple and ABC announced Wednesday.
"It's a huge deal," said Andrew Swinand, an executive vice president at Chicago-based Starcom USA, which buys advertising for several Fortune 500 companies. "It's the tipping point" for content.
"Consumers are demanding options," he said. "They're going to get the content in an environment that fits their schedule. So if I can TiVo it and watch it at home, or if I'm mobile and don't have that luxury, I'll get it in another format. If I watch it every week and I happen to miss it this week, I'll download it."
Although there are other portable video players on the market, the limited selection of programming available on the Internet, coupled with slow download times and complicated file formats, has kept them from widespread popularity.
Apple, which remade the music business by making high-quality digital files available on the Internet and offering seamless downloads to the iPod, now believes it can take the same route with video.
Apple noted that the iTunes store catalog has grown to 2 million songs since its launch in 2003. More than 600 million downloads have been recorded.
"We've gained a lot of credibility in the industry in the past 2 1/2 years with what we did with songs," said Eddy Cue, Apple's vice president of applications. "And that's what we're trying to mirror in the video space."
The new iPod, starting at $299 and available next week, will allow consumers to download thousands of music videos and other content.
"This is the first giant step in making content available to more people in more places more often," said Robert Iger, chief executive of The Walt Disney Co., which owns ABC. "It is the future as far as we're concerned."
Disney and ABC share a long relationship with Pixar Animation Studios Inc., which is also headed by Apple chief Steve Jobs and will offer short films via the iTunes store.
TV shows offered on iTunes will be free of advertisements. Other kinds of entertainment may soon be sold this way, too, analysts said.
"The TV deal is just the beginning," said Jim Grossman, who helps manage $63 billion and owns Apple shares at Thrivent Financial in Appleton, Wis.
With morning commuters catching the local news, friends sharing views about the latest videos around the water cooler and parents seeking to entertain children on long car rides, the iPod could help reshape the video landscape.
John Collins, a manager at Prosound car audio in Chicago, said Apple has sounded the death knell for the car DVD player, beloved by parents everywhere.
Source
But in unveiling its new video iPod on Wednesday, the company did more than show off its latest gadget. It also highlighted, in dramatic fashion, the seismic shifts taking place across the media spectrum. The days when what we hear or see is pre-determined by a static program schedule are going by the wayside.
Instead consumers, more than ever before, are firmly in control of their media, choosing content that is "liquid" and can flow through multiple devices.
But that freedom comes at a cost: $1.99 per video from Apple's iTunes site. That's a dollar more than Apple's highly successful music downloads--a business that reshaped the traditional music industry almost overnight.
"I think this is going to be a real ground-shifter," said Carl Goodman, director of digital media at the Museum of the Moving Image in New York. "It could completely alter the relationship consumers have with their video media. If you're talking about the DVD player or the VCR, those are toast. "
And that has huge implications for everything from television and advertising to movies and videos.
In fact the ABC television network wasted no time jumping aboard Apple's bandwagon. Episodes of the network's hit shows "Desperate Housewives" and "Lost" will be available for download the day after they air on television, Apple and ABC announced Wednesday.
"It's a huge deal," said Andrew Swinand, an executive vice president at Chicago-based Starcom USA, which buys advertising for several Fortune 500 companies. "It's the tipping point" for content.
"Consumers are demanding options," he said. "They're going to get the content in an environment that fits their schedule. So if I can TiVo it and watch it at home, or if I'm mobile and don't have that luxury, I'll get it in another format. If I watch it every week and I happen to miss it this week, I'll download it."
Although there are other portable video players on the market, the limited selection of programming available on the Internet, coupled with slow download times and complicated file formats, has kept them from widespread popularity.
Apple, which remade the music business by making high-quality digital files available on the Internet and offering seamless downloads to the iPod, now believes it can take the same route with video.
Apple noted that the iTunes store catalog has grown to 2 million songs since its launch in 2003. More than 600 million downloads have been recorded.
"We've gained a lot of credibility in the industry in the past 2 1/2 years with what we did with songs," said Eddy Cue, Apple's vice president of applications. "And that's what we're trying to mirror in the video space."
The new iPod, starting at $299 and available next week, will allow consumers to download thousands of music videos and other content.
"This is the first giant step in making content available to more people in more places more often," said Robert Iger, chief executive of The Walt Disney Co., which owns ABC. "It is the future as far as we're concerned."
Disney and ABC share a long relationship with Pixar Animation Studios Inc., which is also headed by Apple chief Steve Jobs and will offer short films via the iTunes store.
TV shows offered on iTunes will be free of advertisements. Other kinds of entertainment may soon be sold this way, too, analysts said.
"The TV deal is just the beginning," said Jim Grossman, who helps manage $63 billion and owns Apple shares at Thrivent Financial in Appleton, Wis.
With morning commuters catching the local news, friends sharing views about the latest videos around the water cooler and parents seeking to entertain children on long car rides, the iPod could help reshape the video landscape.
John Collins, a manager at Prosound car audio in Chicago, said Apple has sounded the death knell for the car DVD player, beloved by parents everywhere.
Source
posted by LittleJohnny at
11:22 AM
