Apple will Own Your Living Room

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Kareem has posted a rather insightful look at how Apple plans to own your living Room. He says that the sleeper was Jobs' "oh, and btw" bit that detailed his deal with deal with Disney to distribute shows on the new video iPod.

Disney is a conservative company, so getting them to sell their shows on iTMS is a coup for Jobs. But it's also an experiment for Disney, which is why there are only five TV shows available. When this takes off--and it will, because Jobs convinced Disney to make the hot Lost and Desperate Housewives available, and because customers want to consume media when and where they want--the TV studios are going to jump on board the iTunes Music Media Store faster than you can say Eva Longoria.

And when that happens, Apple will own digital music distribution (they currently own 84% of the legal downloads market) and they'll own digital video distribution, because once TV happens, movies won't be far behind.

He goes on to speculate that Apple would not buy TiVo as it doesn't fit the mindset or strategy, but they will build a TiVo killer. And that with those deals above already in place...


the problem with apple is

the problem with apple is that they make their money on hardware. their assets, business processes, and internal value system are all about making the bulk of their profit from creating and selling hardware. sooner or later, hardware will get commoditized and value will shift to content providers, software makers, and other niches in the value network. and those niches are about having a more open architecture and allowing communication -- ideas that are apparently quite foreign to apple.

i eagerly await apple's demise. it will be a glorious day for all!


Eisner just left a few weeks ago and the new Disney Chief Iger is keen start builing a legacy for himself. However he did a pretty poor job of keeping the ABC stations in the loop:

Less than two weeks after replacing Michael Eisner as Disney's CEO, Bob Iger began to put his stamp on the company Wednesday with a potentially precedent-setting deal that impressed several company analysts — but created anxiety among some of his key allies, his ABC network's affiliates.

I listen to about 4-5 hours of podcasts a week and it works because it's audio only. I can listen while I drive, while I'm food shopping, and so on. Watching video on my schedule is appealing, but watching video requires you focus your attention, not something you could do while driving or food shopping. So does taking your TIVO reducing it and making portable really help you? Now giving me the ability to go back and pull up an old episode of a TV show and download it to my TV is something that would be appealing. However I don't hear anyone asking questions about the TV actors getting a sliver of the $1.99 piece of pie.

This really isn't a vote of

This really isn't a vote of confidence by Disney. Seems more like the new boss at Disney is kissing Steve's ass to score some brownie points to use in the ongoing Pixar negotiations.

As for the living room, Apple is definitely making strides. The universal dock allows you to connect your iPod directly to the TV, while controlling it w/ the new remote. How long it will be until we see WiFi built into the dock?

Video's entrance into the iTunes store seems like a much larger deal than the new iPod though. Pay per episode could wipe out the current 500 channel model, but it's not going to happen at $1.99 an episode nor on a 2" screen.


>>i eagerly await apple's demise. it will be a glorious day for all!

Exactly wrong

interestingly enough

interestingly enough graywolf steve jobs made essentially your same argument a while back at a press conference for the 1 year anniversary of itunes:

You know one of the things that I say around Apple, I paraphrase Bill Clinton when he was running long ago, when he said, 'It's the economy stupid.' I say, 'It's the music, stupid.' We have to stay focused on the fact that people are buying these devices to listen to music. ... People love listening to music as a background activity when they're exercising, when they're commuting and when they're just hanging out. Music is a wonderful thing because A, it's music, and B, because it can be listened to as a background activity. And a lot of these other things that people are talking about building in, such as video and things like that, are foreground activities. You can't drive a car when you're watching a movie. You know? It's really hard. So we really are very focused on music because that's what we think the revolution is here.

guess he changed his mind....

I like Apple. Apple is the

I like Apple.

Apple is the only company that is really innovative. They were the first company to put *only* a CD rom in computers when floppies were still very much in use. By doing that, they forced change throughout the industry. Sometimes it works beautifully, sometimes, like with the Apple Newton -- which by the way had writing recognition software in the early 90's when that wasn't even heard of -- flopped. But Apple is always willing to try something new.

Maybe you aren't thrilled with their equipment or their OS, but you have to give credit where credit is due: they lead the industry instead of waiting for the industry to change for them.

I admire them for that.

Apple is the only company

Apple is the only company that is really innovative.

and this is where we agree and disagree at the same time.

apple is highly innovative -- to dispute that is to dispute the obvious. their track record is legendary. but apple is also all about trying to dominate the digital music market (and with this new video thing maybe about trying to own the whole digital entertainment market). they are not really about creating an economy/ecosystem that expands the digital entertainment pie for everyone. can i sync mp3s from my yahoo music subscription to my ipod? no. can i buy a song from itunes and import it into my windows-based audio editing program? not unless i want to go through the hassle of converting that stupid aac format into something else. and how about creating services that allow me customize my ipod's functionality and appearance? i guess not.

but apple has always been about trying to own everything, and when you do that and dont let anyone else participate in the fun, you end up stifling innovation. and that's why i'm so opposed to apple.

ignore me though. this guy says it way better than i do.

it's going to cost them over the long run, just like it cost them the OS market in the 80s.

of course there are die hard apple fans -- and plenty of them, so to each their own, i suppose. :)

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