
Yesterday during the Macworld 2008 Keynote, Steve Jobs introduced the Apple TV (take 2). I was impressed with his willingness to say that the first version was a failure and that they were going to try again with this new updated version.
Of all the things I heard and saw at the Keynote this year, it was the announcement of movie rentals in the iTunes Store and the updated AppleTV that impressed me the most. I was surprised with how simple and easy Apple is going to make downloading and viewing movies where ever you are. It's funny how quickly technology moves. Just a year ago, I was in search of a companion for our HDTV. I wanted something that would allow me to record analog TV, watch movies, view pictures, and play back music from a simple device. The requirements were simple, Maria had to feel comfortable using it. I decided the best option would be to add a MacMini to our HDTV in the living room. It's a computer, so it can be expanded and with the inclusion of the right software we would have a solution that would satisfy my requirements. I haven't been disappointed with the MacMini in the living room. As a matter of fact, it inspired me to clean up six years of digital photos and create a wonderful library detailing our travels and our lives.
Now enters the AppleTV, a simpler solution. It's not a computer, it's an appliance. It's driven by a six button remote with elegant software. This solution improves on the MacMini because it reduces the need for someone to interface with a computer. This solution is software driven, and Bill Gates is right, software is the future.
Lots of tech folks are complaining that Apple shouldn't get the mindshare with regard to digital movie downloads. They weren't first to market and they don't have a large product install base. But the genius of Apple is they know how to transform and re-establish the terms for a marketplace they enter. You need look no further than their presence in the music business for a recent example. They made it easier for people to obtain music legally. This has resulted in sales of iPod topping 100 million, 4 billion songs being sold and the creation of other competing solutions, which has driven down prices and increases opportunities for consumers. I'm grateful that Amazon has entered the music download business to give Apple a run for its money. This has resulted in DRM free music from the major labels, and cheaper prices for a commodity (music).
Additionally, no one ever talks about the fact that all of the existing digital movie download services ignore the mac platform and its users (Netflix Streaming, Movielink, Amazon Unbox), so Apple had to create a solution for their customers. They did this with music downloads, with music players, with cell phones and it's important that they continue to support the loyal customer base that purchase their computers.
When I think about the solution offered by the AppleTV, I can easily see Apple repeating the success they have had with music with movie rentals. But let's take up the idea that Apple isn't first to market, there are at least two solutions on the market right now that compete with the offering of the AppleTV: Xbox Live, and Vudu. It's been reported that Xbox has an install base of 18 million, and you would think that Apple would think twice about entering a market dominated by Microsoft. But the Xbox is a gaming console that also allows you to watch, rent, and buy other media content. It wasn't designed from the ground up as a set-top box for movies, TV, photos, music, podcasts, etc. While the XBox is capable of everything the AppleTV is, it fails to deliver the simple solution of the AppleTV, plus I can't see my grandparents buying, and installing a Xbox to watch movies, pictures, and listen to music. I think a better comparison is the Vudu. This device seems to be a set-top box like the AppleTV which delivers movie content to your TV, but again this doesn't work either because the Apple eco-system is what makes the AppleTV a better solution. I can get my music, photos, movies, and podcasts on it, plus because it's in the eco-system I can move those items to my other devices (iPod, iPhone, computer) without additional software or expertise.
There are a couple things that will challenge the AppleTV's march toward market dominance. First, Apple needs to renegotiate with the movie studios and see if they can get same-time delivery of content. While waiting 30 days after the release of a DVD isn't a deal breaker, it will slow adoption of digital movie downloads. Second, Apple needs to renegotiate the 24 hour viewing period, it should be at least 30 hours, if not, 48 hours from the start of playback. Too many people have problems watching an entire film within a 24 hour period.
I'm impressed with the AppleTV and look forward to it success.
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AppleTV |
Macworld2008 |
MW08
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