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Then again, Apple TV has to date been an abject failure, thus delaying Apple’s living room strategy.
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No doubt, then, that Apple has sown the seeds of a digital download strategy. Is Apple heading in the same direction? There is significant reason to believe so: (a) it has the leading digital media download property in iTunes (b) it has a decent living-room platform in Apple TV and (c) it’s eager to stake a claim in the home living room. Simply stated, Microsoft has announced its intention to “skip” high-definition physical discs and proceed directly to digital downloads (enabled by a Microsoft ecosystem, of course).
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Despite the fact that Microsoft had a significant stake in the success of HD-DVD, it chose instead to focus its future on digital downloads – of games, music, and movies – to not just the PC but to the game console and living room home entertainment center. One is reminded of Microsoft’s struggle regarding whether or not to embed HD-DVD players into the Xbox 360, a move which would have resulted in disadvantageous pricing at an unfortunate time in the console battles. Insufficient consumer demand, high levels of satisfaction among traditional DVD users, and mounting pricing pressures will likely keep most consumers away from PCs with extravagant feature sets (at least for this holiday season). To date, Blu-ray has failed to impress Apple and Mr. That’s not the kind of demand Blu-ray was hoping to see this holiday season. Competition among Blu-ray retailers and manufacturing will be cutthroat and the winners are likely to be discount retailers such as Wal-Mart and Target selling the $200-$300 models, not high-end audio shops selling the $700-$900 Blu-ray models. According to TDG’s latest research (fielded in mid-October 2008, just two weeks ago), only 9% of adult broadband users “definitely would buy” a new Blu-ray player even if the price was $200. However, this hope has been dashed by a combination of factors including (a) tough pricing battles with HD-DVD during the 2007 season that led to $200-$300 retail pricing levels years before Blu-ray supporters had hoped, and (b) consumer demand being pinched by mounting economic woes. Blu-ray was supposed to generate higher retail prices and improved margins, well above that of traditional DVD players. Despite the fact that Blu-ray won the format war, and despite the spin of fanboys and evangelists, Blu-ray player sales have been modest and both retailers and vendors face a tough balancing act during the holiday season. As is often the case, those within Apple were revealed as less proficient at predicting Apple’s future than those of us on the outside!Ī lot has changed since that time, for sure. Apple, it seemed, had tossed its support behind Blu-ray and, so I was informed, would have Blu-ray-enabled Macs (both desktop and notebook) on the market by mid-2008, holiday season 2009 at the latest. To label Blu-ray a “cost issue” is a misnomer, a distraction in reality, it’s about strategic positioning.Ībout a year ago I received a copy of an “insider’s” document outlining how the various PC vendors were aligning in the high-definition DVD format war.
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Okay, but what is he really saying? Since when is Apple concerned about burdening Mac users with excessive costs? As loyal supporters will admit, there is no such thing as a “cheap” Mac (and if there was, it wouldn’t be a Mac) and that hasn’t stopped consumers from paying the higher prices which Apple commands of its products. We’re waiting until things settle down, and waiting until Blu-ray takes off before we burden our customers with the cost of licensing.”. It’s great to watch movies, but the licensing is so complex. I don’t mean from the consumer point of view. Consider this recent statement by Steve Jobs: Of course, it didn’t happen, but Apple has nonetheless made certain to keep the waters muddied.
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I recall one such disclosure in Q4 2007, a time when the HD-DVD/Blu-ray war in full swing, which noted that Apple was already on board the Blu-ray train and that within 12 months every new Apple notebook would be armed with Blu-ray. When it comes to Blu-ray, few know for certain of Apple’s direction (a fact which fuels the number of Blu-ray-related insider leaks and ambiguous public statements).