Internet + TV! Oughtta be exciting, right? But it's been over a decade since this marriage was possible, and even now with major pushes by market-capitalized behemoths Apple & Google to making it a reality, the success of the whole thing remains rather ambiguous. Which internet TV devices will win out? Which formats will win out? What pricing models will consumers put up with? What is the overall value proposition, anyway?
And how many players that currently have a finger in the pie will be able to keep it there? Hollywood studios and content producers have old relationships with legacy distribution channels like cable. Middle men like cable are threatened by the new model internet-TV offers. And they've convinced the studios that the new model will cheapen content for the consumer.
Apple TV may or may not slay that dragon. They may slay the dragon but not solve the whole puzzle. But I like that they've thrown their hat in the ring, and I have to say it's a pretty nice hat.
Apple TV makes itself a challenger by integrating music, films, videos, and internet content, to be played on your home entertainment center via Ethernet or WiFi. Consumers benefit because television and movies can be played when its convenient for them. Rentals and purchases are now available without leaving home. I don't particularly like their internet version of cable’s pay per view model, but it does appease some of the Hollywood resistance and it does enable great film-making, financially.
Apple TV boasts 720p standard. It's not the top hi-def standard (1080p), but it's a nice compromise of great resolution, without demanding too much of your bandwidth. And Apple's superior graphics rendering technology further mitigates any disappointment in 720p.
So what’s taking so long? Buying and selling music online has evolved to a necessary way of life. Movie rentals have changed dramatically as well. We no longer see CD or movie rental stores in strip malls and grocery store parking lots. The selling and distribution of music is mostly done through digital downloads, from anywhere the user finds an internet connection. Mobile smart-phones are equipped to store and play high quality music and video. But internet video distribution is still in its beginning stages due to industry fear of profit loss, retailer retaliation, and consumer price wars.
Loss of profit can translate to several things, but when concerning the internet, piracy is a major concern. One way producers can fight piracy attempts, is to compete with illegitimate companies on delivery, price and quality. Better competition promotes consumer risk aversion. If consumers can rely on films being released earlier to digital format at an affordable price, they may be reluctant to buy pirated materials. Film makers would meet the needs of supply and demand faster, and therefore cut out the middle-man, or should I say middle-pirate?
Another benefit to consumers is the quality of video that is being released digitally. Pirated videos can be low quality. It can be risky to buy off a pirated site because you never know what you'll get. Apple TV reduces the risk of not getting your money's worth in purchase.
With venues like Apple TV, consumers will buy more because there are more choices available, more time because everything can be bought at home, and there’s compelling incentive of instant gratification. Less money will need to be spent on packaging and distribution costs, which is beneficial to both consumers and producers.
As a consumer, the only disappointment in the race to digital convenience is the social aspect of experiencing television and film. Slowly, movie release dates are becoming less exciting, because I know that I will not have to wait long to see the movie online. Also, because there are so many television shows to watch, and people can watch them whenever they want, the shared suspense is slowly dwindling between viewers. Watching popular tv shows during the week and talking it about it with friends has lost its luster. Why bother when you can rent the whole season on Netflix and watch it all at once?
So with that said, as tv-internet companies like Apple TV becomes more common, not all will be lost in the traditional entertainment model. The music industry has changed, but there are still traditional aspects to its distribution. CD stores are becoming obsolete, but the concert / event industry is thriving. I believe film will take a similar course. We may not have brick-and- mortar rental stores, but film as an event, on the large screen with friends, can still have a place in our society. Companies will have to add value in other ways, and adjust business models to compete with the change in times.
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