August 23, 2010

Counterpoint to Kevin Rose’s Thoughts on an Apple iTV

Today I had the opportunity to check out the latest blog post from Digg founder (and Big J man-crush) Kevin Rose on a potential new version of Apple TV called Apple iTV.  While Kev seems to believe that iTV will “change everything”, here’s some thoughts to maybe temper that enthusiasm.

  • Internet-Enabled Televisions:  While still not widely available, I think that many people would consider getting an iTV would be the same people who like to stay on the cutting-edge of technology to get an internet-enabled television.  The applications that iTV would most likely offer are those also likely available to those with one of these TVs.  So, why pay $99 for something you already have?
  • Pictures/Video Streaming:  A few months ago I turned on my PS3 and had to sit through a firmware update so that Sony could update the photo viewer and all I could think was “What a waste of time?!”  While offered through PlayStation, Xbox 360, Tivo, and many other services, I have only once sat somewhere and watched a photo slideshow on a television.  And that was because I set it up for my stepfather’s 50th birthday back in April as some background entertainment.  I’m not sold on picture streaming being a valuable utility.  It’s like the old carousel slideshow of our generation…  Nobody wants to see it.  Add to it if, as Kevin states, it’s tied with MobileMe then you have to pay an extra $100 a year to maintain an account for the privilege to do something you didn’t want to do any ways.
  • Content Providers Won’t Participate:  One killer app that Kevin mentioned was how content providers will launch apps to stream shows through iTV, monetizing their shows by selling them through iTunes or the App Store.  The current gen Apple TV had allowed for buying and streaming stuff purchased on iTunes.  But here’s the thing – even with mass adoption of these types of applications it’ll likely not come anywhere near to recouping the lost revenue from advertising.  There was an article recently on CNET about how Google is trying to line up content for their Google TV as the networks want to protect their affiliates.  And the whole being able to drop your cable/satellite providers…  Yea, cable channels not only make revenue from advertising but also from the subscriber fees they make from those providers.  So, while cable channels will definitely take advantage of a new revenue source, they’re definitely going to limit what’s available to protect the money they make from the cable companies.

Just a couple of thoughts.  Like with the Apple TV, I wouldn’t buy an iTV just because I don’t have a use for it.  I can use my Xbox/PlayStation to rent digital content, stream Netflix, etc.  So, it once again makes you think “Who is Apple targeting with this product or what does it offer that distinguishes it?”  I’m guessing we’ll see when Apple officially announces it, probably some time soon.

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