I'll first take a look into the Apple TV technology and then discuss the inevitable consequences and benefits the movie industry will face.
Straight from the Apple released technical specifications:
The second edition of Apple TV will include a Apple A4 chip with a lightweight and sleek design starting at a low price of $99.
Ports and interfaces:
- HDMI2
- Optical audio
- 10/100BASE-T Ethernet
- Built-in IR receiver
- Micro-USB (for service and support)
In the box:
- Apple TV
- Aluminum Apple Remote
- Power cord
- Documentation
Apple TV is also available with 40 or 160 GB hard drive.
Apple TV can process three different photo formats: JPEG, GIF, and TIFF. Further, Apple TV is compatible with high-definition TVs with HDMI which provides compatibility with many models from different manufacturers.
Now that we are past the technical specifications for the Apple TV we can really discuss the uses of the sleek device. Apple TV will allow consumers to rent from a large selection of commercial free HD movies, shows, and watch music videos straight from their iTunes account. Further, the consumer can log onto Netflix to use their existing account on their Apple TV. In addition, Apple TV allows access to the consumer's favorite internet content in HD such as Youtube, flickr and many more. The fun don't stop there. Apple TV will allow the consumer to turn their TV into a HD photo album accompanied by their iTunes music. Apple has taken considerable steps to make their other devices compatible with Apple TV. The consumer can control Apple TV with their iPhone, iPad, or iPod.
The greatest impact on the customer's everyday life and the entertainment industry will be the ability to rent movies right off of Apple TV with the use of an iTunes account. The prices for movies can range form $2.99-$4.99 to rent and TV shows will be $0.99 per episode. Adding to the stress of declining movie prices, Apple TV will allow their consumers to use their Netflix account to watch on their TV. Unlike ZMI.com, Apple TV is legally providing consumers with low prices and instant availability right on their TV. While ZMI.com does threaten the entertainment industry with its drastically low prices and illegal selling of the content, Apple TV may threaten the industry as well. Apple TV provides more than just downloading movies and shows, it also provides consumers to access their Netflix to stream on their TV. With the addition of Netflix into the Apple device, customers will no longer have the urgent need to go rent a movie or watch a movie elsewhere. While a movie is downloading on iTunes, customers can merely stream another on Netflix, surf the internet, or look through their various photo albums. All this without having to leave the comfort of their homes can be hurtful to the entertainment industry that relies on selling DVDs and movie goers.
However, there is a bright side to all this with great potential for the entertainment industry. In Briefing Hollywood and the internet, the economist article explains the entertainment industry's slow adaptation of the internet. Hollywood is terrified of the threat piracy sites, like ZMI.com, provide to the industry. However, Apple TV will mitigate the risks of people going to piracy sites by providing the same low prices on a legal avenue. Further, now that consumers can acquire movies without leaving their homes, they will be more likely to watch more. This increase in renting on iTunes and streaming on Netflix can be the blessing Hollywood needs to deter consumers away from the piracy sites.
One of the greatest opportunity Hollywood faces is the ability to use the Internet for its benefits and future movie and show deployment. Hollywood can use Apple and Netflix to acquire consumer's watching habits to provide the best and highly demanded content. With the internet on their side, Hollywood can run analyses on what, where, and how consumers watch movies and shows. This research can provide Hollywood to churn out the highest demanding content faster and more targeted allowing for more profits and less overall costs.
The simplicity and possibility of the Apple TV is a definite appeal to me as a TV and movie enthusiast, an avid techy, and a business mind. Apple TV, a fantastic sleek device, provides consumers easy access to movies, music, photos, and the internet right in their own homes. For Hollywood, Apple TV provides new opportunities, potential for growth, and innovation.
Economist Article: Provided in course packet
However, there is a bright side to all this with great potential for the entertainment industry. In Briefing Hollywood and the internet, the economist article explains the entertainment industry's slow adaptation of the internet. Hollywood is terrified of the threat piracy sites, like ZMI.com, provide to the industry. However, Apple TV will mitigate the risks of people going to piracy sites by providing the same low prices on a legal avenue. Further, now that consumers can acquire movies without leaving their homes, they will be more likely to watch more. This increase in renting on iTunes and streaming on Netflix can be the blessing Hollywood needs to deter consumers away from the piracy sites.
One of the greatest opportunity Hollywood faces is the ability to use the Internet for its benefits and future movie and show deployment. Hollywood can use Apple and Netflix to acquire consumer's watching habits to provide the best and highly demanded content. With the internet on their side, Hollywood can run analyses on what, where, and how consumers watch movies and shows. This research can provide Hollywood to churn out the highest demanding content faster and more targeted allowing for more profits and less overall costs.
The simplicity and possibility of the Apple TV is a definite appeal to me as a TV and movie enthusiast, an avid techy, and a business mind. Apple TV, a fantastic sleek device, provides consumers easy access to movies, music, photos, and the internet right in their own homes. For Hollywood, Apple TV provides new opportunities, potential for growth, and innovation.
Bibliography:
Apple TV Technical Specifications: Apple WebsiteEconomist Article: Provided in course packet
