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iTunes faces competition in video market

updated 12:35 pm EST, Tue November 8, 2005

Stiff competition in 2006

Goldman Sachs says that Apple could face during 2006, as Viacom and General Electric have agreed to provide on-demand TV shows to cable and satellite companies--just hours after their premiers--for $1 each, half the price of videos on Apple's iTunes Music Store. David C. Bailey of Goldman Sachs reiterated an "in-line" rating for Apple, but said the ability to watch shows on a television (instead of a computer or iPod via iTunes) are strong indications that Apple will not be able to easily replicate its digital audio dominance in the digital video market, according to a report from Forbes.com. "We continue to view Apple as a positive trade into January based on investor sentiment, news flow, and strong earnings. However, Apple's longer-term ability to maintain its multiple is based on outsized iPod growth, its ability to lead in the evolution of the digital home, and ongoing Mac share gains--all of which face stronger headwinds in 2006."




by MacNN Staff

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  1. MacScientist

    Joined: Dec 1969

    0

    Maybe, maybe not

    In order for any vendor to compete with iTunes video, it has to be accessible to the market. However, NBC has chosen to go with DirectTV. In so doing, it has excluded Dish Network, the other satellite providers, and all cable customers. CBS is going with Comcast. In so doing, it has excluded all satellite providers and every cable provider except Comcast. Both have decided to target home viewers to the exclusion of all other potential markets. NBC and CBS have snatched defeat from the jaws of any chance of victory.

  1. dashiel

    Joined: Dec 1969

    0

    plus...

    it seems that the shows get deleted after 24 hours. i'm not really sure what the benefit here is, it sounds like paying ˘99 is more in case you forget to tivo a show or want to watch/tivo 3 things at once... otherwise why wouldn't someone just tivo it?

  1. bleee

    Joined: Dec 1969

    0

    Digital Home...

    "However, Apple's longer-term ability to maintain its multiple is based on outsized iPod growth, its ability to lead in the evolution of the digital home, and ongoing Mac share gains--all of which face stronger headwinds in 2006."

    I agree with that statement, People would much rather watch video's on a TV than a computer. They really need to get an Apple PVR going in the living room, who wants to sit at the desk and watch a movie when they could sit on a comfy couch? Or watch on a 20inch iMac lcd?? I'd much rather watch it on my 42inch wide screen with surround sound.

  1. ender

    Joined: Dec 1969

    0

    Airport Express 2

    Apple should make a new version of Airport Express that can stream video from your iTunes library to your TV, just like the current one streams audio. Then your iTunes downloads can easily be watched on TV, without a video iPod. Couple that with being able to send remote signals back to your computer (again, you can already do this with audio with Keyspan's remote), then all they would need to do is at the ability to send the FrontRow interface to the TV as a video signal so you can see what you are doing.

    In fact, Elgato already does most of this, but without access to anything that has FairPlay DRM applied.

  1. lazarus001

    Joined: Dec 1969

    0

    heh

    Which DirectTV cutomers are going to pay $1.00 (intro price) for a tv show that will be deleted in 24 hours. Why not just record it. Or call a friend and have them do it. Seems to me that this will not even impact iTMS at all. Wouldn't this rather be something to compete with tivo or DVR stuff?

    If I want to watch something off my iPod and would rather have a larger screen, or larger than my monitor, why wouldn't I use the S-Video off my dock to my larger TV? I mean there are options... my iPod or my iMac don't need 42 inch screens.

    I think they are making an attempt, hurried and not thought out at all, to enter the market. I really doubt it will work.

  1. testudo

    Joined: Dec 1969

    0

    Re: maybe, maybe not

    In order for any vendor to compete with iTunes video, it has to be accessible to the market. However, NBC has chosen to go with DirectTV. In so doing, it has excluded Dish Network, the other satellite providers, and all cable customers. CBS is going with Comcast. In so doing, it has excluded all satellite providers and every cable provider except Comcast. Both have decided to target home viewers to the exclusion of all other potential markets. NBC and CBS have snatched defeat from the jaws of any chance of victory.

    Yeah, but to buy from the iTMS, you need to have iTunes, a Windows XP or 2000 machine, or a Mac running the latest version of iTunes (which not everyone can run), and then an iPod to take it with you. Plus you have to spend twice as much money.

    Of course, why would anyone with a DVR pay for such c***, when the whole point is to just record it. Commercials aren't that big of a deal to skip over, you know.

  1. MacScientist

    Joined: Dec 1969

    0

    RE: Re: maybe, maybe not

    Yeah, but to buy from the iTMS, you need to have iTunes, a Windows XP or 2000 machine, or a Mac running the latest version of iTunes (which not everyone can run), and then an iPod to take it with you. Plus you have to spend twice as much money.

    Twice the money, or not, iTunes downloads don't disappear in 24 hours. Furthermore, iTunes does not require an "either/or" decision. If you have a new Mac, you have iTunes. If you have an old machine, you can upgrade. If you have Windows, you can download and install iTunes. If you don't have a computer, you can buy one. To access the iTMS in the worse case, the only thing that you have to give up is money. However, if you subscribe to Cox or Charter, you cannot upgrade to Comcast. If you subscribe to the Dish Network, switching to Direct TV will cause a hardship and Comcast is likely not available to you.

  1. dampeoples

    Joined: Dec 1969

    0

    Pay Per View

    This is Pay Per View, not portable, where does the iPod fit into this at all?

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