The American Resurgence

So on Wednesday the new Apple TV was unveiled. The original Apple TV was released back in ’07, but never really caught on. However the new Apple TV is a major improvement over the original. It will likely be very successful, and at the same time help to revolutionize the entertainment industry as we know it.

So what’s different?

The new Apple TV is actually less than half the size of the original, and less than half the price. The price on the original was $229, and now its only $99. This makes it much more affordable. This model has no hard drive and doesn’t store movies. What it does is stream iTunes movies and TV shows, thus eliminating the need for a hard drive. If you have shows or movies on your computer’s iTunes you can stream them straight to the Apple TV as well. Also, as a bonus, Netflix subscribers can get instant access to their account and stream any movies or shows available through Netflix for no additional cost. High Definition (HD) TV shows will be available for $.99 per episode to rent (down from $2.99), and HD movies start at $4.99 to rent. The new Apple TV also gives access to YouTube, Flickr, and MobileMe.

So why didn’t it work before, and why will it work now?

In my humble opinion, the original Apple TV was ahead of it’s time. It was a great idea, but at the time there was very little market for digital television or movies. Blu-Ray was new on the market, the PS3 and XBOX 360 had just come out, and people simply weren’t interested. Additionally, at the time people would only be able to watch the movies or shows on their computer, iPod video, or their TV. They couldn’t take the DVD over to a friend’s or anything like that. The idea was simply too limiting. So what changed?

The iPad is the item that will make this possible. With the millions of iPads that are now available, people want digital movies and TV shows like they wanted digital music after the iPod came out. The iPad practically screams “Watch a movie on me!” You combine that with the cheaper prices of both the Apple TV and the content available for it, and Apple should be set up for a win this time.

What’s in store for the future of Television?

I actually predicted this about 6 months ago with the release of the iPad. Over the next 2-5 years I predict a shift away from satellite and cable style television with channels and commercials, and a shift towards On-Demand and streaming movies and TV. Everything is in place, and we’re just now getting to a point where the market will support it. More and more people today are just waiting an extra day or week to see their show on Hulu. People also like paying a monthly subscription to something like Netflix and getting unlimited access to watch whatever they want when they want. I’m sure people would much rather pay $20-25 per show for a full season pass, and be able to watch it whenever they want, than pay $50-75 a month for 250 channels they don’t watch on Cable or Satellite. It is much more convenient, and potentially cheaper. I anticipate that that by next season the NFL package will be available for live streaming (for a price).

Everything is in place for the next phase of television entertainment. Sit back and enjoy the ride, as we embrace the digital age.

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Tags: apple, apple tv, itunes, netflix, streaming, television