For all the complaints about Apple and its closed systems (their rigid control of the App Store, their refusal to allow Flash on iOS devices, etc.), if there’s anything we’ve learned from today’s introduction of the next generation AppleTV, it’s that the Hollywood studios should thank their lucky stars that they have a friend in Steve.
At $99 the new AppleTV is almost compelling, and if I ever get around to subscribing to NetFlix, I might even consider getting one. But what’s most striking are its self-imposed limitations, specifically it’s lack of a browser or third party apps. Oh you can stream from the iTunes Store and NetFlix and YouTube — in other words, trusted gatekeepers — but the bulk of the Internet is off limits.
In other words, it’s a device for streaming legal content, not the tens of thousands of pirated movies, TV shows and live streams that make up the bulk of the streaming video available online today. Yeah sure, I guess you could still download a pirated movie to your home computer and then stream that to your TV via AppleTV, but that just turns the AppleTV into a $99 cable. Besides, most consumers feel bad about stealing content, so given a convenient way to purchase it legally at a reasonable price they’ll opt for that. (Not that $5 for a new release compared to $1 from a RedBox is what I call a reasonable price.)
No doubt music industry executives resent Apple’s dominance, but the movie industry should be so lucky. In some parts of the world legal DVD sales have slowed to a trickle while illegal downloads and streaming have come to dominate the home viewing experience. Packing the same custom A4 processor as the speedy iPad and iPhone 4, the new AppleTV boasts more than enough horsepower to run a “home theater PC” that could easily bring the world of video piracy into millions more living rooms.
But Apple intentionally didn’t go there. And for that, Hollywood should be thankful.
errr ahhh
Amazon offers all this for $70 .. the Roko ….
oops .. the price is now $60!!!
Oh, and it offers a HUGE set of options, maybe Apple will too???
SJ @1,
I’m not shilling for Apple. I’m disappointed with the new AppleTV. I was hoping for a screen-less, sensor-less, camera-less, iPod Touch… which hardware wise, is what the new AppleTV is. But there’s no browser or App Store, just a simplified UI.
All I’m saying is that this closed system — which by the way, all the other set-top box competitors are adopting too — is in the interest of Hollywood as it doesn’t easily facilitate viewing pirated content.
Yawn… XBMC on a PC driving my TV please. Far superior and free. I don’t need more overpriced garbage from Apple. Even if I WAS in the market for overpriced garbage I most likely wouldn’t buy theirs.
I’m still not sure how .99 an episode is a good deal. I’ve currently got 50 series set up on my DVR to record. If you figure a season is 15 episodes (network series are often 22, but cable are likely to be around 12), it would cost me $750 a year to rent all the shows from Apple. This might be cheaper than buying cable, but I also lose access to live events (Mariners, College Sports, NFL, Emmys, Oscars, etc).
So even if they added every single network (Good luck with that), I’m not saving much money. Plus, with Comcasts data caps; I wonder if I could really stream that much stuff in HD a month.
Is it true that Apple’s exclusive agreement with AT&T for wireless service on the iPhone is due to expire at the end of the year? I’m a Verizon customer and am happy with their service, have no inclination to switch to AT&T but this is the one thing that has prevented me from buying an iPhone.
Sure you are shilling for them.
The Roko has been doing this for a long while .. with Amazon and Netflix.
So you think al Jobs ahould get credit for NOT trying yet another Apple closed market scheme?
Face it. Apple and Apple’s customers have a bad case of hostage empathy.
Apple’s entire strategy is set high prices, entrap a loyal (captive) audience and make moolah out of it.
Does this work? Yeh … for Apple. Why the user/customer/addict is willing to put up with it .. well you might ask the same question of poor folks in Miss who vote Reprican.
SJ @6,
Read the post. I’m saying they are producing another closed system, just like the Roku device.
Yes, BUT at a higher price.
As for the internet, if you want to do the whole shmeer and do nto want to shell out Apple bucks … why not buy a netbook or inexpensive PC??
I had my brush with Apple’s arrogance when I bought an Ipod that subsequently melted down multiple times.
But as part of the settlement, I can’t legally talk about it.
.99 to rent a show? that’s almost 22 bucks for a season. You could own it for that.
I have a PS3 with PlayOn that works infinity better than this. Seems overpriced, under-functional, and after having an iPhone I sure as fuck don’t trust Apple to make a product that is usable, reliable, and won’t become a complete piece of shit as software updates come out.
Plus when I buy things I don’t want them tied up such that I have to use their software and hardware.
Er… I just hooked a computer to my TV. So I get EVERYTHING I want… Viola!
Goldy,
The way you present this is that Apple could just have well gone the other way selling a general purpose computer optimized for pirated content.
I think it is important to remember that it is in Apple’s best interest to promote legal content. They get a 30% cut if (music and app sales are an indication). And 30 cents on the dollar is a hell of a lot better than 30% of free. Apple have cleverly worked itself into the middleman business. Which financially is a great spot.
So I could understand why contents producers would be dubious of Apple.
Gordon @12,
Except that Apple breaks down its earnings, and despite its dominant position in music retail, and the incredible success of the App Store, its revenue and profits overwhelmingly come from the sale of hardware.
If you look at the specs, the new Apple TV is little more than an iPod Touch without the display, the sensors and the camera. They could have given it Safari and a full complement of apps, and opened it up to the App Store and app development. They didn’t, and one can only assume that it was not due to technical limitations.
Writing comes more easily if you have something to say.
Sent from my iPad 4G