ipod
11/08/2005, 12:35pm, EST
Tuesday, November 8th
iTunes faces competition in video market
Goldman Sachs says that Apple could face stiff competition in the digital video market 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."
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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.
In fact, Elgato already does most of this, but without access to anything that has FairPlay DRM applied.
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.
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 crap, when the whole point is to just record it. Commercials aren't that big of a deal to skip over, you know.
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.