Apple prepping new video delivery method for TVs
updated 06:50 am EDT, Fri August 26, 2011
Apple may have new TV video mode, TV subscriptions
Brief remarks in an overview of Tim Cook's new position as Apple CEO have hinted that Apple is developing a new approach to TV. The company was cryptically described as making a "new technology to deliver video to televisions." What that entailed wasn't elaborated by the WSJ source.
The mention could be an allusion to a greater emphasis on streaming over downloading. Apple TV owners can watch shows without having to permanently download a copy, but they still have to cache on the hub while they play, downloading as if they were permanent copies. It could alternately include something beyond the Apple TV.
Also mentioned was word that Apple was still open to the possibility of an iTunes TV subscription. The mention implied it was an exploration rather than definitive action, but it would revive attempts not seen since 2009, when the plan reportedly involved bundling a collection of TV shows for a monthly fee.
Apple has been gaining share in pay-per-show video but, unlike in music, isn't the majority. Netflix has an estimated 64 percent in market share, while Hulu is one of the most-visited video websites. Recently exited CEO Steve Jobs has often been against subscriptions for content people have traditionally bought one at a time, but Apple and its new CEO may be under pressure to give at least a TV subscription to lower the practical price of its video service.
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vs. Netflix
The biggest hurdle for Apple in this arena is that their streaming model BLOWS compared to Netflix. I can start a movie near instantly on Netflix (altho it may take some buffering to get to HD) but any rental I've ever made on iTunes has taken at LEAST 30 minutes before it's viewable. They are really going to have to step it up if they hope to compete in the on-demand market.