Video iPod

reuters.com
Video iPod opens gates on ad model
Tue Oct 18, 2005 3:20 PM ET172
By Michele Gershberg

NEW YORK (Reuters) - Apple's latest iPod, a video-enabled music player that serves up some of the season's hottest television shows without commercials, will likely prod advertisers to get serious about finding a foothold in portable media players, media buyers said.

Apple Computer Inc. (AAPL.O: Quote, Profile, Research) last week unveiled the new model in its popular iPod lineup. The company reached a deal to sell downloads of top-rated ABC network shows such as "Desperate Housewives" and "Lost" the day after broadcast for $1.99 per episode.

The announcement sent a new chill through an advertising industry struggling to reach consumers amid an explosion of media outlets. ABC and rivals like Viacom's (VIAb.N: Quote, Profile, Research) CBS are seeking new ways to deliver entertainment out of the television box, whether on the Internet or with new devices.

The bigger fear, and some say opportunity, for advertisers is how to keep their brand messages in front of consumers as iPods, other portable media players and increasingly sophisticated cellular phones pick up speed and vie for time once dominated by television and the 30-second commercial.

"The idea of consumer-controlled content has been prevalent, said Andrew Swinand, executive vice president at Starcom Worldwide, part of Publicis (PUBP.PA: Quote, Profile, Research). "This is the tipping point in terms of it coming to fruition."

The market-leading iPod built its brand on digital music downloads that can be arranged and listened to like a radio, but without advertising. Portable video game players like the Sony PSP and entertainment content viewed on cellular phones are also gnawing away at television viewing.

But with television audiences slipping, marketers question why they should pay top dollar for commercials on programs that can be watched ad-free a day later.

"It's a great concern to advertisers," said Jason Maltby, co-president of national broadcast for media buyer Mindshare, part of WPP (WPP.L: Quote, Profile, Research). "Why spend a couple hundred thousand dollars for an ad unit on 'Desperate Housewives'? The value keeps eroding."

IF SHOWS MOVE, WILL ADS FOLLOW?

Other experts argue that ABC will pick up new viewers for its shows on the video iPod rather than harm existing ratings. Such technology-forward users have already tuned out the regular prime-time television schedule, they say.

Apple has said it won't allow advertising on its iPod platform, but some experts wonder how long it would hold off on a lucrative new revenue stream. A company spokesman was not immediately available

"TiVo and satellite radio were not ad-supported but they are loosening their guidelines to accept ads," said Brad Adgate, research director at Horizon Media. "It really depends on the finances of Apple."

Maltby said advertisers might push television networks like Walt Disney Co.'s (DIS.N: Quote, Profile, Research) ABC for assurances that their costliest ads will remain embedded in a show for some time.

"One could argue that if I'm a sponsor of 'Desperate Housewives', my commercial should be wherever 'Desperate Housewives' goes, whether it's on the phone or an iPod," he said.

Marketers may also offer to pay for video downloads if a viewer watches an ad first, or invest even more to embed their brands into a program's storyline as they have to combat ad-skipping technologies such as TiVo's digital video recorder.

"You would have to make ads much more contextually appealing to iPod users," said Brent Magid, chief executive of consultancy Frank Magid Associates. "It has to be about the environment and the experience iPod users have come to like."


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Apple faces hard time wooing Hollywood to new iPod
reuters.com
Mon Oct 17, 2005 5:17 PM ET

By Bob Tourtellotte and Kenneth Li

LOS ANGELES/NEW YORK (Reuters) - Apple Computer Inc chief Steve Jobs faces a far tougher task wooing film and television producers to create shows for the new video iPod than he did in the music industry as many questions remain over content and pricing, industry executives say.

In the week since Jobs unveiled the handheld iPod, which plays video clips on a 2.5-inch diagonal screen, media and technology executives have been trying to figure out whether people will watch shows on a small screen, what types of programs will work and whether money can be made at the $1.99 price Apple set.

"There is no doubt people are going to access content in more flexible ways going forward," said Rick Feldman, who heads the National Association of Television Program Executives.

"What we don't know, for independent producers, is what kind of content is going to be wanted and needed, what it will cost and what it can be made for," he added.

At its launch, Walt Disney Co. chief executive Bob Iger committed Disney's ABC TV network to offering hit shows "Lost" and "Desperate Housewives" for the video iPod.

Sources familiar with the thinking at rivals NBC and CBS said those networks have talked to Apple about providing content, but that the $1.99 price tag was too low.

Both networks declined to comment specifically about Apple, although an NBC spokeswoman did say in a statement that NBC "is having conversations with many top players."

Media executives, however, said it costs very little for networks to re-package shows for downloading in what amounts to test marketing because the consumer appetite, costs and profits of those programs already have been realized in other arenas.

The networks can afford to experiment, but independent film and TV producers, which the networks rely on to dream up shows, want hard facts before investing dollars in new programing.

SHOW THEM THE MONEY

Veteran financial analyst Tom Wolzien said "a lot of confusion" remains in the marketplace and further noted that how much actors, directors, writers and other artists might receive also must also be addressed.

Late last week, unions representing various talent groups issued a rare joint statement saying they would work to "ensure our members are properly compensated" for downloads.

When Apple entered the music industry a few years ago with its original iPod, it found a market ripe for change in an industry ravaged by piracy and plunging CD sales.

Record makers were drawn to Apple's formula of combining the iPod with the one-click ease of its iTunes music store, and major issues over digital rights management -- how much to pay artists and how to track downloads -- had been solved.

Film and TV producers are mindful of combating piracy but are not yet as desperate as the music industry was. The reason for the current movie box office slump -- U.S. ticket sales are down about six percent this year -- has yet to be determined and TV viewing is up across broadcast and cable networks.

Downloading video of TV shows and films is nothing new, but film and TV makers have remained reticent about exploiting the market. Two Web sites, CinemaNow and MovieLink, have offered legal downloads for years and although they are growing, they remain small businesses in a niche market.

For that reason, CinemaNow CEO Curt Marvis welcomed Apple, noting that the recognition they will bring should lure consumers to the entire arena, much like it did for music.

"From day one, which for us is six years ago, we have said the validation of this business through the entry of others is key to having the whole industry grow," he said.

There is no doubt Apple, Jobs and the original iPod caused legal music downloading to increase, but whether they can cause a similar reaction for films and TV shows awaits an answer.

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Podcasters prepare to launch video era
reuters.com
Fri Oct 14, 2005 10:30 AM ET162

By Pascal Pinck

LOS ANGELES (Reuters) - Podcasting is on the verge of setting off a video revolution and users of Apple Computer Inc.'s new video iPod can expect a deluge of outspoken dommentary, religious sermons and pornography.

Podcasting, a term based on the name for Apple's portable media player, allows customers to download audio, and now video, segments for free to their computers and portable devices. Radio shows are among the most popular podcasts, but amateurs have helped turn podcasting into an eclectic global phenomenon.

Apple's video-enabled iPod models, announced on Wednesday, promise to stoke the fervor of home-grown broadcasters.

"I'm thrilled by the possibilities of combining devices," said 'Soccergirl,' whose opinionated and sexually suggestive program was listed among the 40 most popular podcasts on Apple's iTunes service.

The 26-year old librarian, who chooses not to reveal her real name, already produces short video segments that can play on viewers' computers.

The new iPods "will make it easier for many of my listeners

to watch my video as easily as they listen to my show," she said.

Other early adopters of video podcasting are likely to include clergy of all stripes.

San Francisco-area pastor Tim Hohm, whose audio podcast is one of more than 1,400 religious offerings available on iTunes,

says the new iPods represent "a fantastic opportunity" and believes video has the potential "to inspire tens of thousands to embrace a message of inspiration and hope

The current crop of audio podcasters also includes entrepreneurial-minded Web journalists, some of whom are struggling to find a workable business model.

Media analyst Rafat Ali, whose paidcontent.org Web site focuses on the economics of digital content, forecasts many such start-up projects will fail due to lack of expertise and funding.

"Producing interesting video content is really hard," he told Reuters.

Success will depend largely on programmers' resources and ability to grasp the complexities of a medium that is much more

complicated than audio, Ali said.

"It's a matter of how good is the quality and how do they get funded," he added.

PORNOGRAPHERS IN THE LEAD

Historically, pornographers have a strong track record of adapting new imaging devices and formats in a commercially viable way.

Mark Kernes, a senior editor at the Adult Video News trade magazine, said the highly-visible video iPod would certainly be

used for adult content, but that many consumers might not want

to show off their new material in public.

"Anybody that's got a video iPod is probably going to want to have a couple of porn clips on there, just to have," he said. "But you're not going to be looking at it at the mall."

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avn.com
HellHouse Video: Now For iPod and PSP
By: MJ McMahon
Posted: 2:00 pm PDT 10-17-2005

SEATTLE - It was only a matter of time before porn hit Apple’s newly minted video iPod, and it now appears the initial culprit to deliver it is BDSM content provider HellHouse Video.

The company has released titles for the iPod and Sony’s PlayStation Portable handheld gaming device in tandem.

“You can now watch our films in total privacy wherever you want,” said Goddess Hollie, co-owner of HellHouse Video. “Check them out on the road, in a park, while riding a bus, or take your device under the sheets and watch them where no one knows.”

The initial launch includes five titles each for the iPod and the PSP. Among them are This Little Piggy and Sindi’s Wet and Messy Adventure.

HellHouse Video, the media arm of HellHouse Dungeon, views the iPod and PSP as additional distribution models and hopes they’ll introduce HellHouse titles to new consumers, Hollie said.

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reuters.com
Disney offers next-day iTune downloads
Thu Oct 13, 2005 1:17 AM ET

By Steve Gorman

LOS ANGELES (Reuters) - ABC's unprecedented plan to offer next-day downloads of its biggest prime-time hits for $1.99 per episode via Apple's online iTunes store opens a new revenue stream for the TV industry and a new era of digital portability for viewers, experts said on Wednesday.

The move, unveiled in conjunction with a new partnership between the Walt Disney Co. and Apple Computer Inc marks the latest bid by a major broadcast network and its parent company to shake up "old media" models and expand their avenues of distribution.

"This is the first giant step in terms of making content available to more people in more places," Disney CEO Robert Iger said in announcing the deal.

Commercial-free episodes of two of U.S. television's highest-rated shows -- ABC's "Lost" and "Desperate Housewives" -- will be available for download from Apple's iTunes a day after their network broadcast. Last season's episodes will be available for download immediately.

Viewers will then be able to watch those shows at their leisure on the new video-playing iPods and newly upgraded iMac computers unveiled by Apple on Wednesday.

Apple's iTunes will also offer downloads of ABC's new drama "Night Stalker" and Disney Channel's two most popular cable TV shows, "That's So Raven" and "The Suite Life of Zack & Cody."

The downloads will be priced at $1.99 per episode, the same as iTunes will charge for music videos.

Iger said he sees the portability of the TV-viewing experience offered by iPod and similar devices "as the future as far as we are concerned."

But the move raised questions about whether instant access to current prime-time shows might diminish their future value in the burgeoning DVD market and in broadcast syndication.

David Miller, a media analyst for brokerage Sanders Morris Harris, said the added distribution outlet "increases the value of the content" and complements Disney's overall strategy.

"Disney has always taken the attitude that they want to be able to distribute their content to anyone, any time ... no matter how they want to consume it," he told Reuters.

Mike McGuire, research director for the Gartner Group, said the downloads present "another way to extract revenue" from Disney properties without cannibalizing commercial potential for DVD sales and reruns.

The availability of cheap downloads of single episodes could help drive demand for DVD boxed sets, giving more consumers a chance to sample a show before deciding whether they want to pay for an entire season. And he said audiences that seek out their entertainment on the Internet differ from the more "passive" viewers who settle for traditional reruns.

"This is about a very active, growing consumer base, active in the sense that they will do a little extra work to ... get content outside of a programing schedule, and oh, by the way, they want that content to be portable."

Offering downloads of shows stripped of ads, however, might give advertisers the jitters, he added.

The Disney-Apple venture comes as numerous networks are exploring new outlets for on-demand viewing of their shows.

Last month, the Viacom Inc.-owned UPN network began offering video streaming of its new hit comedy "Everybody Hates Chris" through Google Inc.

And the WB network, controlled by Time Warner Inc., has debuted two of its shows, "Jack & Bobby" last season and "Supernatural" this fall, through sister online service AOL before they premiered on television.

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reuters.com
Apple unveils video iPod, ABC TV deal
Wed Oct 12, 2005 8:52 PM ET

By Duncan Martell

SAN JOSE (Reuters) - Apple Computer Inc. on Wednesday introduced a version of its market-leading iPod that also plays videos and unveiled a deal with Walt Disney Co. to sell television shows like "Desperate Housewives" after their first broadcast.

Apple has long aimed to make its devices the hub for digital entertainment inside and outside the home, and Chief Executive Steve Jobs said the ABC deal was a turning point in bringing television to the Web.

"I think this is really pretty big and I think it's just the beginning," Jobs said in an interview.

The video iPod -- a long-rumored product that could further spark sales of the popular brand -- has a 2.5-inch screen and comes with 30 or 60 gigabytes of memory. The sleeker, thinner version will sell for $299 and $399, respectively, and holds up to 150 hours of video.

As part of its deal with Disney's ABC network, iPod users will be able to download five shows including ABC's "Desperate Housewives" and "Lost." Current-season episodes of the series will be made available at the iTunes music store the day after broadcast.

The entire first season of "Desperate Housewives" and "Lost" will be available immediately. The television shows are only available in the United States and cost $1.99 per episode, without commercials.

Media companies and computer companies have traditionally been at odds over bringing entertainment to the Web, given rampant piracy of music online, and Disney and Apple said their deal was a watershed.

"This is the first giant step in terms of making content available to more people in more places," said Disney Chief Executive Robert Iger. "This is just the beginning of what we believe will be a long and prosperous relationship between Apple and Disney."

Both the deal with Disney and the new products -- which also include an iMac with a remote control that acts as a home entertainment hub -- give Apple a chance to forge a leading position in online media, said Cross Research technology analyst Shannon Cross.

"They are positioning themselves as the company that will connect video content to the end users and control your living room," Cross said.

The company also plans to offer music videos for $1.99 each at its iTunes online music store. It will also offer short films from Pixar Animation Studios Inc., which is also led by Jobs

But Nitin Gupta, an analyst at Yankee Group, questioned how much the video iPod would boost sales of the devices, saying it will be hard to sell shoppers on the idea of watching "on-the-go" video on a little screen.

"The market is likely small for people who want to watch a portable video on a little screen," he said. "That will not be the main reason people buy the iPod. It is just an enhancement."

Apple has already sold more than 28 million iPods since their introduction in October 2001 and now has about 75 percent of the market for digital music players, representing a booming business that has helped the company's stock triple in the past year.

The company has also refreshed the iPod line-up many times since its introduction. Apple on September 7 unveiled the iPod nano, a pencil-thin device that uses memory chips instead of hard disk drives to store songs.

The new iMac computer, which the company said would stand as an entertainment hub for DVDs, music and photos, will also compete directly with Microsoft Corp.'s Media Center.

The new products come after Apple on Tuesday reported a fiscal fourth-quarter profit that quadrupled from a year ago as revenue rose 56 percent and unit sales of iPods more than tripled.

But the company's stock fell as sales of the iPod -- 6.5 million in the quarter -- were less than some analysts' estimates, which were as high as 8 million.

Apple shares fell $2.32, or 4.5 percent, to $49.27 in late afternoon on Wednesday on Nasdaq.

(Additional reporting by Franklin Paul and Michael Kahn)

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reuters.com
Apple unveils new video iPod
Wed Oct 12, 2005 3:20 PM ET163

SAN JOSE (Reuters) - Apple Computer Inc. on Wednesday unveiled a version of its market-leading iPod that also plays videos and increased the iMac computer's ability to act as a home entertainment hub by adding a remote control.

The video iPod -- a long-rumored product that could further spark sales of the popular brand -- has a 2.5-inch screen and comes with 30 or 60 gigabytes of memory. It will sell for $299 and $399, respectively.

The company also plans to offer music videos for $1.99 each at its iTunes online music store, along with short films from Pixar Animation Studios Inc.. It also said some ABC television shows would be available on iTunes a day after broadcast for $1.99.

The company unveiled the new products at a news event in California's Silicon Valley.

Apple has already sold more than 28 million iPods since their introduction in October 2001 and now has about 75 percent of the market for digital music players.

The company has refreshed the iPod line-up many times since their introduction. Apple on September 7 unveiled the iPod nano, a pencil-thin device that uses memory chips instead of hard disk drives to store songs.

The new iMac computer, which the company said would stand as an entertainment hub for DVDs, music and photos, will also directly complete with Microsoft Corp.'s Media Center.

The new products come after Apple on Tuesday reported a fiscal fourth-quarter profit that quadrupled from a year ago as revenue rose 56 percent and unit sales of iPods more than tripled.

But the company's stock fell as sales of the iPod -- 6.5 million in the quarter -- were less than some analysts' estimates, which were as high as 8 million.

Apple shares fell $2.40 percent on Wednesday to $49.19 at mid-afternoon on Nasdaq.

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