digital music/video
02/21/2007, 1:20pm, EST
Wednesday, February 21st
Apple TV may reach 30% of DVD market
Apple's wireless media streaming device known as the Apple TV, which is scheduled to ship this month, has at least one analyst optimistic that it will seize a formidable portion of CD and DVD sales within a few years. Deutsche Bank analyst Chris Whitmore says it's "conceivable" that the Apple TV could achieve 20-30 percent of a $26 billion market in just a few years, potentially driving $5-7 billion in incremental revenue alongside $0.50 or more in earnings-per-share for the Cupertino-based company. Apple will first profit from its near 40 million iTunes customers, according to Whitmore, with Apple TV eventually eating into the business of CD and DVD makers. The Red Herring notes that Apple signed a deal with Paramount for its iTunes Store in early January, and that Lionsgate jumped on board to offer content last week.
Filed under: industry
Other story tags: digital music/video
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Charge me for USE you SOBs! I want the shows that I want and when I want them. Apple can make that a reality ... but it's still a wee bit too pricey and a wee bit too small a selection.
Yes, a subscription to an individual show needs to be a little cheaper. Then I can buy ad-hoc/ala carte anything else that strikes my fancy.
Juicy!
You can have both, but Apple is pushing the iTunes store model. I personally love my Tivo as much as I do my Macs and iPods. Just wish they could play better together.
I do like the new features in Toast that allow me to use Tivo2Go on the Mac.
Movies are a wash for me. Cable-On-Demand and Apple will have the same movie-du-jour plus or minus a few months of exclusivity. Apple is competing with the wrong people - DVD media. Apple needs to be competing with MS/XBox and Cable companies - both of which have high bandwidth inputs and lots of storage for content.
The battle for the entertainment center has begun. Apple will always have the more elegant solution. Pricing will decide the winner. I hope that apple will become price competitive soon. This apple fan boy is waiting for AppleTV.2 as well.
However, I have been buying quite a bit of History Channel (and similar) DVDs from Amazon, as well as movies.
I usually buy used which saves quite a bit of money.
I guess this is my version of Ala Carte. If the cable & satellite companies offered Ala Carte I'd likely buy.
It would be nice if the Apple TV developed into a decent option for me.
For the CD side, its ridiculous. The AppleTV has no interface for music except on the TV (um, what if I don't want to turn on my television to switch songs or play an album?) and is only good if you want your music in the same room as your TV set.
For the DVD side, you don't even get a DVD drive in the iTV, so you need to go into the other room to load your DVD, or plan on just buying all your content from Apple.
(BTW, with all the "Its got to be one price, because iTMS buyers are too stupid to understand some items might cost more than other items!" hoopla over music and movies, right now iTMS movies are variable priced, but unfortunately variable high, not low. I guess we can't have $4.99 movies in lo-def, standard-quality audio, but we can get it for $9.99 and $14.99!).
Ok, so setting aside the selection and quality (ie, not HD) issues, let's do some math.
Number of TV series you watch: let's assume 10 Number to new episodes per season: typically 15-18, let's assume 18 (because "24" is skewing things!)
So I'm looking at 180 TV episodes each year. At $2 each that's $360 per year, or an average of just $30/month. The price of my basic cable (no movie channels) is $65/month, a savings of $35 each month that I can use to buy the other miscellaneous content I might occasionally watch on TV.
So what's missing: - local programming/news (HD over the air?) - sporting events (sorry Apple, highlights ain't going to cut it) (also perhaps available HD over the air) - selection (improving) - HD (coming soon???) - subscription model (buying is fine for music which I listen to over and over, but I don't need to own my TV shows)
In point of fact, I moved to HD last spring... and that was about a year ahead of my master plan (forced move, old CRT gave up the ghost). I'm finding that I watch a LOT of non-movie content a LOT more than I did when I was SD. I'm seeing 1-2 HD, DD 5.1 concerts each month, at least one Discovery HD documentary each week.