Yesterday Apple announced its newest iPod that is the next-generation, video version of its ubiquitous audio iPod. The new iPod with a 2.5” screen for viewing movies and video files has been widely reported as the next “revolutionary” product from Apple.
I think the real story has been completely missed by most major media in their latest attempt to swoon over their chosen media darling, Apple.
Viewing digital content on a handheld device is nothing new. I’ve got a 2-year-old Toshiba Pocket PC that allows me to watch full-length movies or any other video content I want on its 3.8” screen. It is great for watching movies on airplanes and while waiting in airports, but the small screen size makes it a bit impractical as a “regular TV viewing” device. I can’t imagine routinely viewing content on the even smaller 2.5” iPod screen. While I can easily enough convert my DVD movies to a file format that allows me to watch on my handheld, what has been lacking for the most part is lack of availability of fresh content for purchase and download.
The real story being missed here is the part of the announcement that Apple is teaming up with Disney to make TV shows available for purchase--commercial free--the day after they air on regular television. This represents a radical shift in the television and television advertising industries. This is most certainly the beginning of a new age in television.
With digital video recorders and other video equipment that allow consumers to watch their favorite shows while “zapping” commercials, the advertiser-supported model of television has long been feeling pressure from modern technology. Keen observers have already noticed that product placements have become more and more important to advertisers as we viewers continue to find ways to avoid watching commercials.
Now we enter the age of television where studios can sell programming directly to consumers without advertisements. Can it be long before all of the TV studios make their programming available for direct sale and download to consumers?
Perhaps we will be able to download television content for one price without commercials and get the same show at a reduced price if we accept a few commercials thrown in. Will there even be “over the air” broadcasts anymore? Will the television industry be in the same predicament as the music industry once all of its content gets digitized and easily traded and shared over the Internet? Will programming itself become nothing but thinly-veiled advertisements?
It will be interesting to watch how this major market shift plays out but let there be no doubt, this is a media market shift story, not an Apple iPod story.
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