JamieG Analysis

JamieG looks deep into the ramifications of current trends in Technology and Media

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The AppleTV experiment, whats the next move?

October 3rd, 2007 · 5 Comments

There has been some interesting new developments in the fight for the living room. Microsoft slowly moves forward with the announcement of licensed generic Media Extenders. Sony announced a TV tuner add on for the PS3. Apple has its hands full with keeping premium content on iTunes. So what are we likely to see next?

The AppleTV experiment has been exactly that. An experiment. The sales have been low, not having much of an impact on the general TV viewers. This is an interesting development as it points to the fact that, the most likely person to have purchased AppleTV are a combination of avid video Podcast watchers, and hacker/pirates who download most content from the internet. Oh and the occasional person who purchased videos on iTunes.

The AppleTV must be considered an experiment as in real terms, it only ever had a very limited appeal. I was amazed as to why it did not come out with a built in DVD player or as a combination of a Digital Set Top Box and AppleTV device. In real terms, its just another remote control on the coffee table (for witch only the most geeky can get past there wives.)

Sony, on the other hand, appears to not have any real direction. A digital TV tuner add-on has been mentioned for this Christmas. But really, the Xbox360 and its run leading up the Halo3 plus lacking games of note for the PS3 for this Christmas are, to put it bluntly, giving PS3 a bad outlook. Sony will need to do something this Christmas.

Finally, the biggest development in recent days has been the Generic Media Extender for Microsoft Media Centre developed by different manufactures. These devices are AppleTV like devices. Small and cheap. They extend all the functionality from a Media Center computer to the “Extender Box”. For example TV, streaming video (Ie home movies, Podcasts). This is a significant development as it lets you not only watch Podcasts and purchased movies like the AppleTV, but also lets you watch TV’s and DVDs plus, and this is icing on the cake, can Play DivX videos. DivX or mpeg4 simple profile, is the standard for Videos found FREE on torrents.

Traditionally Microsoft has always played the company line supporting their biggest customers. The big companies. Microsoft has the most complex DRM system ever developed with more ways to lock you media up then you could imagine. This is most likely because the current media Gateway companies requested these features. And Microsoft wants to keep them happy. For example, the Xbox360 cannot play DivX. The development of Generic Media Extender devices made by third party companies like HP, Dell, are not under the same level of scrutiny and as such, adding support for DivX if mostly out of Microsoft’s control. This is good news for Microsoft, as it takes of the handcuffs.

As devices such as these start appearing in homes all over the world, the adoption of watching TV sourced from the internet will grow dramatically. Especially as trends towards no DRM and mostly free content appear to be developing at a fast rate.

This bring us back to Sony and the PS3. The PS3 is the dark horse in this race. To put it simply, the PS3 is an amazing box, but its left it a bit late. The Game console of the future is not simply the games it offers but also the on-line experience behind it. PS3 not only has a weak game line up , but also the on-line experience is years behind Microsoft. As such, Sony may be forced to OPEN up the platform simply to ensure getting back a lot of development costs. One advantage the PS3 has over Microsoft and Apple is the fact that they are not tied to a PC located near by as a life support system. There is no need for this. It ads considerable costs and complexity as you need a PC to control the media. In my opinion, the Set Top Box of the future should be able to operate without the need for a life support computer system telling it what to do. Sony could offer a Game console that was a DVD/BluRay player, Digital Set top Box, Streaming Video player for home videos and Torrent downloads (Lets face it. Its the future), plus a open standard RSS Video Podcast downloader and, I hope, an Open Standard on-line experience such as iTunes, however, you could for example, point it as Amazon, NBC, or whoever wants to build a on-line experience. Best of all ONLY ONE REMOTE CONTROL.

This of course, throws away the possible gatekeeper control one may archive (As Microsoft and Apple are playing for). But, hell it will probably sell a lot of boxes. Still there is a lot of “ifs”.

And finally, Apple. They appear to have there hands full right now with some of the biggest mistakes in there history. (Bricking iPhones). Plus the music labels trying there best to break the iTunes dominance. They defiantly have there hands full. Still, its time for them to make a a move in the TV area. The AppleTV may have been an experiment, but now its time for the serious stuff.

I call. Steve, its time to show us your cards.

Tags: Apple · DRM · Microsoft · Sony · codecs

5 responses so far ↓

  • 1 Marc Rullo // Oct 16, 2007 at 11:02 pm

    You started your post with limited scope (Apple) and then blew it out to touch on Sony and Microsoft only to return to Apple. But in the real fight for the living room there are many more players than can be mentioned in a simple comment here. Discussing this epic battle with these types of parameters is like talking about who will be in the Superbowl this year and mentioning just three teams. What is next for AppleTV? Does it really matter with all the possibilities out there?

  • 2 jamieg // Oct 16, 2007 at 11:47 pm

    Hi Marc,
    If only three of the teams in the game where spending 100 of millions of dollars trying to win, and the rest where well, there for the sake of trying…
    There really is only three teams that have any chance of getting anywhere here.

    If you know of any other companies spending anywhere near as much money on trying to dominate this market.

    I would love to know who they are.

    James

  • 3 Marc Rullo // Oct 17, 2007 at 8:43 am

    Allow me to name just a few of the other major players. Comcast, Verizon, AT&T, all of the major media companies such as Disney, Time Warner, DirecTV, News Corp. etc. Also, Google, TiVo, Netflix, Amazon and Cisco to name just a few of the other teams just now forming. There are countless others looking for a piece of the giant pie that could turn around with some major innovation that will propel them to top of the food chain. Companies like Sling (now Echostar) and Brightcove come to mind here. Who says you have to spend like a drunken sailor to play in this game anyway?

  • 4 jamieg // Oct 17, 2007 at 2:02 pm

    Marc,
    I expected you to list those companies. And yes they are also dabbling in the area. However, as these devices are niche products and are only available in restricted parts of the world using restricted access to media syndication services, I do not consider them real attempts to the new media model. (Apart from TiVo. Its getting up there.)
    Apple, Microsoft, Sony are pushing boxes to the hole world. These boxes may have end to end secure media services, but really, most people are using them for RSS syndicated media feeds or watching pirated video.

    If your not looking at making these practices part of your overall new media model. Why should I even mention them.

    Look at Music and DRM. Its a sign of the things to come for most online video. No DRM. And no DRM means ANYONE can distribute content. Its just a file on a server.

    You need to spend like a “drunken sailor” as you put it as. That is simply the venture capitalist type environment that exists at the moment. Billions of dollars are being invested into companies that are going to make cool online applications. And they all plan to give it away and figure out how to monetize it later. It’s not an Internet bubble, it’s an Internet Bubble Bath. Hundreds of little companies with venture money that hope one of the big boys will buy in and they get there exit strategy. Its crazy. By a lottery ticket, probably has better ods.

    And typically, the CONTENT owners want to charge as much as the market will bear in these new markets. To them its an opportunity to make more money, while instead is really a change in economics which could mean the end of them all together, unless they change with the times.

    Until I see the companies you named doing the right dance steps, they are are only interesting bylines. The stories of old industry coming to terms with the new but unlikely to have much of a role in it as they are still based on old business models.

    James

  • 5 Logan // Apr 29, 2008 at 12:05 pm

    I haven’t seen a lot of press on this, but why in the heck can’t you purchase the majority of the films on AppleTv (e.g. Superbad or the Bourne series, etc.), is it by studio or Apple release or what?

    Any thoughts would be appreciated!

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