Plugging the Holes in the Grand Unified Apple Media Strategy
The CouchGuy believes that Apple offers the best opportunity for the average home user to build a home media center solution that is truly universal and delivers the ease of use and broad range of entertainment options that the non-technical end user desires. It seems very clear with the recent announcement of iTunes Movie Rentals and the Apple TV Take 2 firmware upgrade that Apple is committed to taking control of media delivery to your living room TV set, and is well on the way to dominance in this space.
That said, there are some holes left to patch in the Grand Unified Apple Media Strategy. I feel certain Apple is already aware of most of these and is working on ways to satisfy these needs. Let's examine a few of the more prominent weaknesses in the Apple delivery system as it currently stands and look at some ways Apple can patch them over.
Music DRM
There can be no doubt that the music industry is finally going to have to abandon draconian Digital Rights Management schemes for digital music. Every major label has some form of DRM-free music either already available or in the works for some for of rollout in the near future.
It is ironic that the largest digital distributor of music in the world and the first such distributor to come out loudly and publicly against DRM is still forced to sell most of its tracks with a DRM scheme attached. Steve Jobs' famous Thoughts on Music essay in February 2007 settled once and for all that Apple wanted iTunes to be a DRM-free zone. iTunes Plus, with DRM-free tracks, sealed the deal. It seems clear that all iTunes tracks will be DRM free as soon as Apple's various license agreements with the labels allow this to happen.
The CouchGuy finds Apple's FairPlay DRM system to be as trouble-free and fair as any DRM system can possibly be, but it is clear that everyone will prefer no DRM at all. How long this will take will depend on how long the rest of the publishers take to get over their current fear of Apple dominance of their industry's digital distribution capability.
It is time for recording industry execs to realize that the presence of DRM on iTunes (and its absence at Amazon, who the music industry is supporting with DRM-free music mostly to "punish" Apple for saving their collective posteriors from financial collapse by dragging them kicking and screaming into the 21st century) is not going to change the established buying habits of the public. Amazon is a worthy competitor and the CouchGuy applauds their efforts, but the iTunes/iPod ecosystem is still (despite the DRM) the easiest way to buy tracks and move them to a portable digital music player. Amazon will take some sales, but there is no indication that Amazon's DRM-free music sales is any sort of "iTunes Killer". Eventually, even the stubbornest execs will realize they can sell more tracks by going DRM=free on iTunes as well as on Amazon (or will be replaced by execs who put sales performance and long-term health of their industry above petty revenge, wounded pride, and foolish shortsightedness). Apple can't fix this — they can only wait until their partners wise up.
Rental Program Limitations
Apple's new iTunes Movie Rental system is a promising start. Frankly, the CouchGuy is amazed that Steve Jobs managed to sign on every major movie distributor right up front. I thought it would take a year or more for some of them to come around. It remains to be seen how fast a decent-sized library of titles can be rolled out. I expect some glitches at first (though Apple's rollouts are almost always a lot more glitch-free than most).
The ease-of-use factor with the new Apple TV Take 2 capabilities should insure a wider acceptance for this program, especially with the lead Apple has on Netflix, who with their LG partnership seems the only serious competitor in this space. Apple has the jump on them, and has aspects of its system that Netflix will not be able to match with an all-streaming model.
I am (by turns) greatly amused and greatly annoyed by the pundits who have already been running the system down before the essential Apple TV Take 2 component of the deal is even in place. It has pretty much been established that people want to watch movies on their big TVs. Watching on computer screens and portable devices is a desirable and necessary component of any system — lots of people want these features. (Netflix's streaming model will fail when it comes to this point.) But mostly, people watch movies from the comfort of their easy chairs and couches. Apple TV Take 2 provides that.
A further price drop in the base Apple TV unit seems advisable, and I expect that by next Christmas. $199 would be better. A $99 basic unit would really hit the sweet spot and that may very well be possible with economy of scale and Apple's engineering prowess behind it.
Another limitation that has been mentioned prominently is the inability of the system as it stands to move rental movies to 5G iPods with video, as it can with the newer iPod designs. This limitation hits the CouchGuy where he lives, since his own iPod is a 5G.
Why is the 5G excluded? It seems very unlikely that this is merely a cheap ploy to get 5G owners to buy new iPods. That's just as silly as the conspiracy theorists who claim endlessly that Apple's changes in the composite video-out capability of the new iPods was just so they could sell users new cables and docks. Apple has massive market dominance already and really doesn't need to swing with such a petty ploy. I suspect it has more to do with the enhanced video quality of the rental movie files.
Apple TV systems (which I firmly believe are the primary target of the rentals — and rightly so) can handle a much wider range of video resolutions and capabilities than the 5G iPod. The new iPods were built to handle the new files, and the 5Gs simply are not capable enough to deal with them. It may be that this can be solved with a firmware upgrade, and if so I am confident Apple will provide one down the line. It may not be possible to do that with the 5G hardware, though. If so, we 5G owners will have to suck it up. Legacy hardware only goes so far, and Apple is better than most at supporting it longer. Occasionally, to get an improvement in the overall system capabilities, software has to leave older hardware behind.
Personally, the CouchGuy watches movies very little on the iPod, using it more for purchased TV shows and video podcasts. When I rip my own movies from DVDs I purchase, I do so in the best quality format that Apple TV will handle — and these won;t play on my 5G either. I am considering purchasing an iPod Touch (especially with the recent firmware upgrade and the SDK about to be released). But if I don't, I'll still be able to continue using my iPod 5G for a long time — just not with rental films.
The rental program's major weaknesses seem again to be in arbitrary requirements by the movie distributors that are likely to change when they see that the restrictions are holding the system back from what it could be accomplishing. The two most prominent such decisions, forced on Jobs to get his wide-ranging rental deals, are a 24-hour restriction on playback once a movie is begun and a 30-day waiting period between the time a film is released on DVD and the day it is available as an iTunes rental.
Like music DRM, these restrictions are a function of the movie industry clinging to outmoded business models that actually hurt the acceptance of their digital ventures. I think both restrictions will fall by the wayside eventually. A 72-hour playback window and a same-day digital and DVD release would better serve the buying public without harming the movie distributors in any significant way. If the public embraces the iTunes rental program but keeps pressuring the publishers to liberalize these restrictions, I think they will eventually fade away. Losing DRM entirely on video is unlikely in the short run, and I'm not sure that this is even desirable on a rental program, but arbitrary time limits and release delays are silly and I think they will be a temporary annoyance that Apple will dispense with as soon as they can show the studios how profitable this rental program can be.
DVD to Apple TV
The CouchGuy has found that using Apple TV to organize and present a video library is much more conducive to relaxed casual viewing than shuffling a stack of DVDs. For this reason, I rip every new DVD I buy to an Apple TV formatted digital file using Handbrake. Yes, this is a technical violation of the Digital Millennium Copyright Act, but that vile and unconstitutional piece of legislation is one more example of the industry clinging to outmoded business models and getting the Congress of the United States to go along with them. I, for one, refuse to accept it.
I do not condone or encourage stealing movies but I do support one's right to repurpose movies one has legally purchased to play in whatever manner is most convenient to the user. For me, that's selecting the movie from my Apple TV menu. Handbrake makes that easy with the latest edition's Apple TV presets.
(it may be possible to improve Handbrake's Apple TV presets even more once the Apple TV Take 2 upgrade ships and we see get better access to the HD video and Dolby 5.1 sound capabilities built into the Apple TV. Then again, it may not — see the Handbrake forums for a technical discussion of this. We won't know until the upgrade ships and the Smart People have a chance to see the HD + 5.1 file format Apple is using. Since this is a streaming file only, going direct to Apple TV and never stored on your computer, this may be a nontrivial problem. But I digress...)
Fox has recently recognized this right, and is supporting it with iTunes-capable digital files provided with their new DVD releases. This prompted the old CouchGuy to drag himself off the couch and to his local DVD purchase venue of choice to obtain Family Guy presents Blue Harvest, the first such Fox release. I found the experience a joy — simply take the extra DVD provided with the digital files and insert into your Mac's DVD drive. iTunes does all the rest, recognizing the file, prompting you to enter a registration code provided on paper in the package, and loading up the digital copy to iTunes. It looks great on my Apple TV. In fact, I've yet to have the regular DVD loaded into my DVD player at all. (I eventually will, just to hear the commentary track and see the extras...) I expect I'm going to buy a lot more FOX DVDs because of this, and I anticipate other studios will follow this lead. In the meantime, there's always Handbrake.
There is a way, however, to provide all DVD owners with a way to make their DVDs available from a menu and watch them without having to load a physical DVD. Flip4Mac is beta testing a Mac software product called Drive-In which allows you to create disk images of your DVDs and save them to a hard drive, then access them through Drive-In or Front Row on the Mac without inserting the original DVD. This seems like a perfect way to digitize DVDs and linking this to Apple TV would be a natural next step in the development of this upcoming product. I encourage you to try out the free Drive-In beta version if you currently use a Mac, and to write both Flip4Mac and Apple to get them together on Apple TV functionality for Drive-In when it is released commercially.
Streaming Web Content
Something many Apple TV users want to see is support for more types of streaming web-based file content. Apple has already provided access to the vast array of YouTube videos with Apple TV, and more such partnerships are desirable. The CouchGuy would suggest Apple pursue a similar alliance with Joost just to boost the content available via Apple TV. Though Joost competes to some extent with Apple's own TV show download offerings, I don't think making Joost available via Apple TV would seriously hurt iTunes video sales and it would certainly boost the desirability of Apple TV. The most desirable streaming source would, of course, be Netflix. Apple may not really want to support what is their only serious competitor with a direct Apple TV link, but I think in the long run supporting more content sources will help the overall Apple strategy, not hurt it. Netflix is actively pursuing hardware companies to build Netflix streaming video into their products. Maybe Apple should still consider it for Apple TV.
Some streaming content sources could be added through the Apple TV menu similar to how YouTube was added, but in the long run it might be worthwhile to add a version of the Safari web browser to Apple TV, as well as broader support for dominant streaming video formats. (Yes, I suppose that means Windows Media as well, though it gripes me no end to support that poorly-implemented piece of proprietary crap...)
While we're at it may as well make a partnership or two with some alternative media rental/sales sources that supplement the major studio offerings from iTunes. One good bet would be Jaman, who already supports hacked Apple TVs through a Jaman player plugin. The Apple TV Take 2 firmware upgrade will probably overwrite the hacks in hacked Apple TV units and make the current Jaman plug-in fail. Adding a Jaman player to Apple TV officially would be a good move in the long run. Check out Apple TV Source's recent endorsement of Jaman's services for more info.
Tighter DVR Integration
I believe it is no coincidence that elGato announced their new EyeTV 3.0 DVR software the same day as the Steve Jobs keynote unleashing Apple TV Take 2. Although there does not seem to be a direct Apple TV connection to EyeTV 3.0, the new software makes it even easier to record on the air and cable based programs in an Apple TV compatible format. I don't think Apple wants or needs Apple TV to become a DVR, but a tighter integration with EyeTV using an Apple TV plugin and menu devoted to it would silence the many people who do want an Apple TV DVR. An interface that allowed the EyeTV channel guide to be viewed and recordings to be set from Apple TV would be very convenient. EyeTV will already convert recorded programs to Apple TV format and place them in iTunes for viewing, so the delivery end of the EyeTV/Apple TV integration is already there.
External Storage Capability
Adding all this content to Apple TV makes expanded storage capacity most desirable. When all Apple TV content was stored in iTunes (as it is now), the on-board storage was mainly a buffer for those with slower home networks. At 802.11n wireless or 100-base-T Ethernet speeds, Apple TV is utterly reliable and seamless at presenting streamed material from a remote computer running iTunes. Apple TV Take 2, however, stores HD video rentals right on the Apple TV drive. It is time for Apple to enable the USB2 port on the Apple TV and allow it to be used for external storage. Hackers have already managed this, but Apple should activate it now (if they don't already plan to do so with the take 2 upgrade — they haven't said). Any design for a future Apple TV version 2 hardware platform should include the ability to run iTunes right on the Apple TV version 2 unit and use internal and external storage as a full-fledged media server for your entire home, using a low-cost light duty version of the Apple TV units we have now as satellites attached to other TVs which feed wirelessly from the main server unit. Add a satellite iPod dock plugged into any Apple TV USB2 port and you have eliminated the necessity for a computer of any kind to be part of the iPod/Apple TV/iTunes ecosystem at all for any purpose. This is all to the good, and would help insure Apple dominance of the living rooms of even non-computer users.
Enhanced Remote Control
The lovely, simple Apple Remote is fine for most purposes, but the power user will want more. I still believe this should come in the form of software for the iPod Touch and iPhone that turns those devices into sophisticated remote controls for Apple TV, Front Row and iTunes. Multitouch controls, color displays and on-screen keyboards would make these devices the ultimate programmable remotes. A small IR blaster accessory could allow them to be linked to other devices in your home entertainment system as well.
Games
Apple TV is still the perfect venue for simple casual gaming of the sort supported by the current run of iPod games. I'd like to see the whole iPod game line brought to the Apple TV screen, along with other casual games designed especially for Apple TV. This market is a potential gold mine once the Apple TV attains more market penetration.
Apple TV SDK
Eventually, the CouchGuy anticipates that Apple will want to release an SDK for Apple TV plugins along the lines of the setup currently in the works for the iPhone/iPod Touch platform. Apple will want to funnel these add-ons through the same sort of controls that will be sued for offering iPhone software. An SDK would enable third-parties to develop all the little touches Apple TV users will want that Apple won't want to create and support itself. Such an SDK program will strengthen the Apple TV brand and the iTunes/iPod/Apple TV ecosystem in general.
More?
What additions to the ecosystem do you see that are needed for future expansion of the Apple Living Room? Post your own ideas and discussions of the above suggestions as comments attached to this post and we'll develop them further for future posts here at couchapple.tv!
Posted by Guy McLimore at 1/21/2008 11:43 AM 
Categories: iPhone,Music,Opinion,iPod,iTunes Store,Movie Rentals,Apple TV,iTunes,EyeTV and other DVR,DVD
Categories: iPhone,Music,Opinion,iPod,iTunes Store,Movie Rentals,Apple TV,iTunes,EyeTV and other DVR,DVD
Well, I just wish they'd allow HD rentals, or better yet, HD purchases to be played on the Mac mini I already have in my set-up... The restricting of HD rentals, and having no HD purchases) available on Macs, made the whole Rental/HD portion of the Keynote a real disappointment for me.
Otherwise, I'd like to see the AppleTV be able to play casual MacOS X games, like Lux, and perhaps include light-weight versions of Mail and Safari (similar to the iPod Touch and iPhone).
If the AppleTV could do the above, I'd consider buying one, and moving the mini somewhere else, I guess...
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using the iPhone or iPod Touch as a remote for the Apple TV is a GREAT idea, hope Apple does it!
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Good article. One thing I haven't seen discussed anywhere is the potential impact due to both the DivX/Xvid group and Adobe Flash announcing the adoption of h.264 as their default encoding in future software versions.
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excellent list.
but one big thing: to really work as a home media center, AppleTV (and the Mac Mini too) really must have a CATV ATSC input jack/tuner and DVR software built in.
yes, you can do this now with EyeTV (and soon Equinux) third party hardware/software on a Mac, but most consumers are not going to bother. it needs to be integrated in the AppleTV box instead and "just work" like Tivo does.
i don't know why Apple hasn't put together a "super" AppleTV with this and a DVD player built in too along with a 500G hard drive that would retail for, say, $499. such an all-in-one box would sell great.
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I disagree that the Apple TV needs a DVD player built-in. DVD players are already ubiquitous -- everyone already has one. Nor do I think it is time for Apple to put a Blu-Ray player in the box -- the Apple TV is a solid alternative to having to commit to either of the HD disk formats, and Apple should stay out of that (even though the company is a member of the Blu-Ray consortium). If I want a DVD player, I'll buy one (or, most likely, I already own one). It doesn't have to be part of my Apple TV unit. (That also keeps the cost of the Apple TV down -- I'm not paying for a hardware device I already have or don't want.)
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I think an Apple SDK would be awesome, but not going to happen. Since SO much of apple tv is video related, there is not much you can do without violating the copyright Act.
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That was inspiring,
thanks for includin a brief paragraph on gaming, i agree apple tv is a potential gold mine cant wait for somone to tap into it
Anyway, thanks for the post
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