Sep 24, 2010 15:15 ET

The New Apple Model: Cheap Player, Expensive Remote

By Darrell Etherington
Gigaom.com

http://www.salon.com/technology/the_gigaom_network/mac_love/2010/09/24/the_new_apple_model_cheap_player_expensive_remote


What’s the real price of admission for the new Apple TV? How about $300 
U.S., give or take, not the $99 it says on the box? That’s factoring in 
the cost of the entry-level iPod touch, which is the least Apple is 
hoping you’ll be buying in addition to its new living room media player. 
They say marijuana is a gateway drug; meet Apple’s new innocuous gateway 
gadget.

The key to Apple TV’s addictive potential? Another recently introduced 
Apple product, albeit one that’s harder to put a price tag on. It’s 
AirPlay, the re-imagined AirTunes successor that allows Apple’s iOS 
devices (as of version 4.2, due in November) to stream video or audio 
content to the Apple TV, and therefore, to your connected home stereo or 
television.

Without it, you’ll be paying Apple for the privilege of streaming all 
your content, since the new Apple TV doesn’t really have any onboard 
storage to speak of. If you choose to go that route, I’m sure Apple will 
be pleased, but I’m willing to bet (and I’m sure Apple is too) that the 
majority of customers will opt to stream their media from their own 
existing sources most of the time. Which means having something to 
stream from.

According to Apple’s own website, video won’t be streamed from computers 
to the Apple TV, only pictures and music. That means you’ll need at 
least an iPod touch just to start streaming video from your own sources. 
Of course, an iPod touch also makes a great remote. So Apple’s turned 
around the normal order of things, and made the storage device the 
controller and the player itself little more than a conduit.

It’s a risk. Most obviously because consumers could fail to see the 
link, or just refuse the price of entry that comes along with an iPad, 
iPhone or iPod touch and the Apple TV could fail utterly without 
affecting sales in the mobile silo at all. But it’s a risk Apple can 
take. The Apple TV wasn’t ever a star in the company’s lineup anyway, 
and even as a $99 Netflix box, it’s bound to have at least some success.

Apple may be waving its hands and pointing to Netflix and 99-cent 
rentals as the major selling points for Apple TV, but the sleeping giant 
is AirPlay (and maybe the iOS powering it, too). Watch the reviews when 
it hits living rooms; there won’t be one that doesn’t mention how simple 
and impressive watching your media via an AirPlay-connected iOS device 
is. That’s when it’ll become apparent that Apple’s living room strategy 
is really just another part of Apple’s mobile strategy.

-- 
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George Antunes, Political Science Dept
University of Houston; Houston, TX 77204
Voice: 713-743-3923  Fax: 713-743-3927
Mail: antunes at uh dot edu

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