March 25th Showtime: Apple’s thrust into the Video Streaming Business
Apple’s March 25th Showtime announcement could be quite exciting. We’re used to Apple’s two major announcements per year but this one is not typical. However, the name suggests clearly that Apple is finally going to tackle Entertainment.
With Apple’s falling iPhone sales they need to breathe new life into their portfolio. Apple has a broad and rich mix of products but they haven’t capitalized on the AppleTV well in the past. Now is an opportune time to do so.
Apple provides a robust entertainment hub into the household capable of delivering a broad set of content. Up till now, Apple has delivered this content on a pay per use basis. Although this is an effective manner in which to deliver a broad array of content, it is not inexpensive. To buy a movie will run you anywhere from $15 to $25 or to rent the film somewhere generally from $4.95 to $7. This can be expensive. TV shows operate in exactly the same way.
Part of this view came from the historical roots set forth by Steve Jobs when the AppleTV was announced. It was basically seen as a hobby endeavour as opposed to the true potential the set allowed – a major and fundamental change to the way in which we consume content. Previously, content was programmed and we had to watch things on a certain day and time. If our schedule didn’t fit that time slot, that was too bad.
The nomenclature of hobby to describe the AppleTV reduced it’s potential to a backroom hobby. This was very unfortunate. While Apple delivered the prime piece of the new goodies, others made hay of the resource. Netflix blossomed on the back of the AppleTV. Others had their solution such as the Roku but nothing matched the AppleTV.
Finally, it would appear that Apple has recognized the AppleTV for the true potential it is capable of.