from the CTIA NewsWire:
Apple Computer unveiled a new iPod model that can play videos as well as music. The company's online iTunes store will sell video content at $1.99 a piece and signed a deal with Walt Disney Co. to offer five ABC programs -- including "Lost" and "Desperate Housewives" -- on the new device.
The New York Times (free registration) (10/13),
New York Post (free registration) (10/13),
Los Angeles Times (free registration) (10/13),
BusinessWeek (10/13),
CNET (10/13).
Ok.. so Apple decides to make a fairly ambitious step and get into a not-so-hot-up-to-now market of video on demand to be played on little screens like the ipod. I've heard several people wonder whether this is smart and I, personally, think its taken them too damn long to realize they could be making a whole lot more money on video content. Very specific video content, though. Nobody wants to see movies on the iPod, at least not at the moment - the screen is too small, fidelity is too low, why? Music videos on the other hand? of course! bring it on! Besides, Apple has a brilliant business model where they add functionality to a piece of hardware, simultaneously providing the content for that functionality, thus driving buying for early adopters for both hardware heads and music heads. Except, of course, Apple is not above being evil. They are still doing this whole - "renting rather than actually selling digital content". The music videos that one can buy from ITunes are "unburnable", meaning that they can not be burned on a CD and can not be transported and shared and can not be actually played anywhere outside the itunes environment. As usual, that eeks me out. In fact, I suspect this in particular may actually affect Apple's viability in the long run, when others start selling the same content but with few restrictions.
Selling digital content is tricky though. It seems that the way big companies have tried to "solve" their problems is buy changing the meaning of "sale" for this type of content. Unlike physical things that contain digital content, when you buy online and download, in many cases you aren't actually buying the content itself. You are buing
the rights to use the content you want, in a way that is defined by the limitations the company puts on that content and everything else you try to do with what you "thought" you bought is actually illegal. Its like saying that you can only use your books or any other things, for just the purpose they have been prescribed for, not for anything else (in case of books, for example, you couldn't use them to hit your little brother over the head, stack them as paperweights or use them as bricks for imaginary architectural structures). Most importantly, you can't use digital content as gifts. Oh, you certainly can gift a "gift certificate" but we all know how impersonal those are. I suspect, in part, this particular limitation will create a problem for digital content sellers in the future (or at least i certainly hope so). Any good product designer will tell you unabashedly that whatever you "think" your product will be used for, its only one of a zillion of its uses. People are creative, you can't predict their behavior, but that's what makes life fun! Digital content providers seem to fully think that they can predict what people whant to do with their product, and produce resrictions heavily based on these predictions. They get a bit of clammoring about it, but their customer base is still small enough and there are enough alternatives that this hasn't backfired yet. I wonder when it will. Maybe the day E-bay allows people to auction off digital content... that day, things will get very interesting
In any case, going back to the iPod and Apple's plans for world domination through the device, there are some interesting side-effects both of Apple's recent Nano offering and this one. Harddrive companies where having major terror moments when Nano came out - the reason? there is no harddrive in the Nano. In general, the Nano removes the reason for a regular iPod and a Shuffle combination for people who like to be active (can't run with an iPod, the harddrive doesn't like that activity) and who want more than a few songs on the device. The hard-drive industry has largely been dependent on the iPod for its livelihood, so the idea of a larger hard-drive for a new ipod with new capability of video which suggests more and more hard-drives is good. Besides, it ensures that a move to solid-state memory will not be happening any time soon. There were a lot of people who heaved a sigh of relief at the news.