September 12, 2006 11:41 AM PDT

Apple forges path to digital living room

Last modified: September 12, 2006 1:00 PM PDT

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update SAN FRANCISCO--Apple Computer overhauled its digital music and video offerings on Tuesday, introducing new iPods in three categories and announcing plans to make movies available for purchase through the iTunes store.

Movies from four studios owned by The Walt Disney Company will be available on iTunes 7, the new version of the download software, the same day they are released to DVD, Apple CEO Steve Jobs said in outlining the new offerings at a product showcase here. Preorders and movies purchased in the first week will cost $12.99; the price then bumps up to $14.99 for new releases.

Apple Showtime

The studios are Walt Disney Pictures, Pixar Animation Studios, Touchstone Pictures and Miramax. Older titles will also be available for $9.99.

Movies can be downloaded in near-DVD quality, Jobs said during his presentation at the Yerba Buena Center for the Arts. Consumers with broadband speeds of 5 megabits per second will be able to download movies from iTunes in 30 minutes, he added.

Apple also plans to introduce a product in the first quarter of 2007 that lets consumers stream their movies or music to televisions, Jobs said. The new device, code-named iTV, has 802.11 wireless built in. It will sell for $299 and works with PCs and Macs. "We think it completes the picture here," Jobs said.

Tuesday's announcements marked more than just a tweak to existing products and services, one analyst said.

"The big theme today was, Apple announced its intentions to take over your living room," said Gene Munster, an analyst with Piper Jaffray.

Apple would not say which flavor of 802.11 wireless networking the iTV would use. "We're not talking about the technology inside iTV," Apple Senior Vice President Phil Schiller said in an interview. "That's next year's discussion."

But Apple has made its mark in digital entertainment with music, and for those who just want a music player, it is offering new iPod Nano and iPod Shuffle models, along with a new video iPod. The new Nanos feature twice as much capacity as the original generation of Nanos introduced last year, and are available in a variety of colors like the iPod Mini they replaced.

Click here to Play

Video: Apple Nano gets styled
Apple Computer CEO Steve Jobs presents new Nanos to the crowd at Apple's showcase in San Francisco on Sept. 12, 2006.

The new Nano will come in three models--a 2GB in silver only; a 4GB in silver, blue, pink and green; and a 8GB in black only. Apple also will use an aluminum casing on the new generation of Nanos, perhaps to counter complaints that the Nanos were easily scratched. The 2GB version costs $149, the 4GB models cost $199, and the 8GB Nano costs $249.

The new video iPods have a 60 percent brighter screen for watching movies and television shows and a higher-capacity battery, delivering up to six hours of video playback on the 80GB model. The 80GB version costs $349, and a 30GB version costs $249. Consumers will be able to play games on the devices, including "Bejeweled," "Tetris," "Texas Hold 'em," "Zuma," "Pac-Man" and "Cubis."

Although the new video iPods have a brighter screen, better battery life and the ability to play games, Apple did not add wireless abilities or a larger screen, as some Apple watchers had predicted. Microsoft's forthcoming Zune player will include built-in Wi-Fi as well as a larger screen. However, it's unclear how bulky that player will be or what battery life it will offer.

Others to follow Disney?
As for the movies, notably, Apple launched with just Disney's studios, while rival Amazon.com announced last week that its Unbox service will include films from 20th Century Fox, Paramount Pictures, Sony Pictures, Universal Pictures, Warner Bros. Entertainment and Metro-Goldwyn-Mayer Studios. Apple's desire to have new releases available the same day as the DVD may have been among the sticking points.

In addition, Apple now has a family connection with Disney. Jobs earlier this year became a member of the board at the venerable entertainment company, which acquired Pixar, where Jobs is CEO.

But Disney CEO Bob Iger said he doesn't expect Disney to be alone on iTunes for long.

"I'm confident there will be many more after us," Iger told CNET News.com in a brief interview after the Apple event. "We're the first but we will be one of many fairly soon."

See more CNET content tagged:
iTV, Steve Jobs, Apple video iPod, Apple Computer, movies

Add a Comment (Log in or register) 176 comments (Showing first 20 comments)
iTV is Excellent
by dansterpower September 12, 2006 11:47 AM PDT
The Forthcoming iTV box changes everything.

Now the PC is the Server for all TV's, iPods, etc, in the home.

This is the future that analysts have predicted would be needed
to jumpstart video on demand and it is here.

Nice job Apple. How do I preorder?
Reply to this comment View all 4 replies
Wake up, Apple fanboys (and get an Xbox)
by Anonymous Hero September 12, 2006 12:01 PM PDT
Streaming video on a home network has been done for years now. Why would you want to stream from a crappy little 80GB handheld when you can stream to Xbox Media Center using all the storage your heart desires?
Reply to this comment View all 7 replies
Agree
by jasonm0817 September 12, 2006 12:15 PM PDT
I bet that Apple will come come out with before January. They want to sell this for the holiday season. Take that to the bank
Reply to this comment View reply
iTV and video games
by KehaarHraka September 12, 2006 12:30 PM PDT
Speaking of the Xbox vs. iTV, I wonder how long it will Apple to announce you can store video games on your Mac and play them through on your television using iTV. Seems to me that it wouldn't be a stretch to turn iTV into a kind of console. Apple wouldn't have to make a huge investment to enable this and the games are already there in that they are essentially just PC games.
Reply to this comment View all 3 replies
iTV + Mini?
by CBSTV September 12, 2006 12:35 PM PDT
It appears that the iTV is designed to complement a Macintosh Mini
on top.

Apple says the iTV will be 802.11 -- but will that be "g" or "n"?
Reply to this comment
iTV, will cost $299
by jasonm0817 September 12, 2006 12:44 PM PDT
Is it worth the price?
Reply to this comment
I'll check it out
by September 12, 2006 12:55 PM PDT
Still feel that they are overpricing their products
http://www.teckmagazine.com/content/view/661/42/
but it's worth taking a look.
Reply to this comment
Jobs copied it again
by cary1 September 12, 2006 1:20 PM PDT
iTV is a copy of Dlink's DSM-320 which was released more than two years ago. Even then, it had many more features than this 'yet-to-be-released' iTV, like online compatibility with certain radios, S-Video, digital audio (optical/coaxial) and RCA out and compatibility with quite a few file formats which I doubt iTV will have.

Dlink has come out with newer models like DSM-320RD (with built in memory card reader and DVD player) and DSM-520 (with HD support and USB port to access media stored on flash drives and portable hard drives)

And most important thing: all these are cheaper than iTV. DSM-320 costs almost $150.

Looks like Apple is doing some catching up here... but it's never too late.
Reply to this comment View all 2 replies
Not impressed
by Tanjore September 12, 2006 1:21 PM PDT
I was more looking forward for a IPOD phone!!!

All they released was
IPOD + better screen
IPOD Nano which is smaller!!! (1gb shuffle)

IPOD movies is a service and I am not interested in watching it on a small screen. ITV will take care of watching on big screen and it is not here yet.

I am not sure if todays announcement is such a great one.
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Still No Subscription Music CHOICE
by john55440 September 12, 2006 1:25 PM PDT
I won't buy an iPod, because iTunes still doesn't offer customers the CHOICE of a subscription music service.

In contrast, Urge's web site states they they offer customers the choice of pay-per-song, or of a subscription service.

I know, AppleSheep don't want choices. They prefer having Steve Jobs dictate to them what they should, and shouldn't, want.
Reply to this comment View all 3 replies
Near DVD Quality, no rent option, no thanks
by jmhmaine September 12, 2006 1:34 PM PDT
I assume the target market is someone bright enough to hookup iTV to a TV. This person will likely have a HDTV, so if the video is near DVD quality at 640 x 480, it will be 4x3 image not 16x9. This means that it will have bars on the left and right of the image, and look only as good as SDTV.

As is not poor enough, but then add the fact that your are "buying" the movie, not renting it. Additionally, if takes 30 minutes to download, assuming a 5 Mbps connection (which most don't have), you could go down to the video store and rent the movie.

How is this better then pay-per-view?

Bottom-line, they want a tech literate consumer to buy a lower quality version of a movie instead of DVD, for about the same cost, plus the cost of the device. Sorry Steve, you got it right with iTunes and the iPod but iTV hasn't been thought out.
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Vista Media Center and XBOX 360 = Digital Nirvana (already achieved)
by mcepat September 12, 2006 1:48 PM PDT
Sorry Apple too little too late

https://www.microsoft.com/windowsvista/experiences/magic.mspx

Really this is strange, Apple plays catch up and Microsoft absolutely blows them out of the water with a innovative UI design

Hey Apple where is my TV programs, isn't it called iTV? Let me know when you will be able to provide HD programming as well?
Reply to this comment View all 6 replies
Impressed with Everything .... Except
by Thomas, David September 12, 2006 1:50 PM PDT
I really expected something ground-breaking, or at least
reasonable for the movie prices. It seems the negotiations,
along that line, failed.

I don't know about everyone else, but I can find absolutely no
compelling reason to purchase movies for a small screen at that
price.

If any of you have seen my previous posts, you know that I am a
true Apple fan. (hate that word "fan" by the way). But I see a
quick demise, and dismal sales regarding the movie section of
the store.
Reply to this comment View reply
but...
by jamesm1973 September 12, 2006 1:59 PM PDT
That is the point of iTV - Apple knows that you do not want to watch movies on a small screen...
Reply to this comment
hmm
by bbydon September 12, 2006 3:12 PM PDT
hmmm...sorry i guess my post is misleading.
That i do not know. And knowing apple probably not. But you
can get them for $20 bucks.
my bad.
Reply to this comment
Lower the prices
by September 12, 2006 4:30 PM PDT
C'mon Apple, you have products that people "want" to
http://www.teckmagazine.com/content/view/661/42/
buy but don't want to take out another mortgage to pay for it.
Reply to this comment View reply
DRM = Death
by StinkyMcButt September 12, 2006 4:58 PM PDT
DRM will kill/limit this product. In order to appease the MPAA, the movie download service will probably scan the room to see how many people are on the couch so your "criminal" friends can't "pirate" the movie by sitting on the couch and watching it with you.
Reply to this comment View reply
iTV = Mac Mini / Xbox = crap
by Peter Bonte September 13, 2006 9:03 AM PDT
Put a Mini on that TV and you can do just about the same and
even more, its one of these "less is more" concepts from Apple
and not the "More is less" concepts from Micro****t.

The iTV is small, costs $299 (or less) and you only need any PC
or Mac with iTunes to host the content.

Xbox 360 is big, loud, costs $500 and you need an expensive
Media edition PC to host the content.
Reply to this comment View reply
Could be better!!!! Stevie Jobs please read it!!!
by Edmiya September 13, 2006 9:56 AM PDT
In the iTunes 7 still the music videos DOESN'T KEEP PLAYING in
full screm mode, you have everthing in the Library menu but a
button for music videos is missing!!!!!
If you have a few CDs in your computer "cover flow view" could
help
you a lot and this looks cool, but if you are like me has 1600 Full
cds, 24 live concert/music videos DVDs organized in only 14
diferent genres, forget about it!
Before install it back up your iTunes Library File and if you don't
like it still you can Back to the iTunes 6.? whiout losing your
playlists.( But still you can use the Browsing Mode in the 7.0)

iTV if this thing come in 2 pieces one for my Mac (with a TV
tuner to wach and record digital/Analogue TV and automatic but
it into your iPod)., and the other piece for my Home Theater
Room (to acess all and control the recordings abillities in my
mac and acess it too) Sure i will buy it!
About the new iPods (Nano and Suffle) only the case and battery
performance changes. (is time to put something new on the
table)

New iPod 5G why buy it now? In a few mouths the 6G will be in
the market (with a bigger monitor for sure)

Movies Downloads? dowload a 30min TV show and wach it in
your iPod make sence, how about a 2 hours Movie? If you own a
home theater DVDs still a better deal and in some cases
cheaper!

I'm a Mac user from Japan but after the "Funny Products event" i
get disapointed with Apple!

Why i can't use the iPod Hi-FI to upload songs to my iPod?
Why the Mac Mini (and all Macs) don't have a optional acessory
(from Apple) to wach and record TV ,and transfer it automatic to
your iPod? (Do you have time to wach all your favorites TV Show
at Home? / Why buy again a TV Show if already you have a cable
service?)

If Apple wants to keep the iPod/iTunes Market in the top is time
to
THINK DIFERENT!

I Hope someone from Apple Directors Board read my coment
and make the changes!

English is not my first language, sorry about it!!!
Reply to this comment
Read between the lines: games are next!
by hal Summers September 13, 2006 10:55 AM PDT
Apple introduced what? Some new iPods, some games, iTunes
7, downloadable movies and set top box to play on content on
TV. Movies transferred to your tv will be cool but what's the
next step?

Downloadable games to be played on your TV via the iTV box.
Just add a game controller that works with the iTV unit and what
have you got? An Xbox Killer!! If Apple has been working with
EA (and probably other game manufacturers), as Steve Jobs
stated in his presentation, do you think they've only been
working on a few simple games for you iPod? I don't think so.

So now you'll your music, your movies and your games on your
computer and you'll be able to wirelessly transfer that content to
your TV. Apple is looking for new markets to move into. If they
can successfully move into games it only means one thing: Adios
X-box and PS3!
Reply to this comment View all 2 replies
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