We’ve said it so many times that it would be embarrassing if Apple suddenly dropped the idea of having a streaming TV service or found it could not source content. But a new bout of rumours hit the blogs this week, focusing on the subject of Apple TV, citing sources at Apple confirming the existence of a streaming TV service. We have always said that Apple would launch a service like this in the Summer and this new spate of rumours suggests that it could launch any day.
The idea involves dropping existing iTunes pricing for streamed TV episodes from $1.99 to $0.99 and also to bundle programs to create personal TV channels. Like movie systems such as those from Sonic Solutions and Blockbuster, these purchased shows can be bought and then streamed any time in the next 30 days and would then be available for multiple views over 24 hours. At present Apple is significantly behind in the way it offers video content, it still has to be fully downloaded as a protected file before it can begin to play, while other services ‘ notably Hulu Plus ‘ use streaming and charge $10 for a monthly service.
Back in June we were hearing that an iPhone class device, using the new iOS 4.0 operating system, was ready to emerge which could double as a media player and a set top to any existing TV with HDMI input. This would be both a replacement to the fated Apple TV product, and a new kind of iPod. It is likely that the iPhone and iPad could also use the same software and double as a set top, as well.
There have been two Apple TVs and a third software update, but they have not sold, and one of the reasons for this is their high costs due to having to embed sufficient storage in the device to keep downloaded video. A streamed service would keep the content in the cloud and only stream it when you wish to view it, eliminating the need for large amounts of storage. Once source said that the new Apple iPhone-alike set top (call it Apple TV III if you like) would have 16GB of memory, like a mid-range phone, to store apps and some content. It would cost just $100 instead of the $250 which the original Apple TV cost.
Our feeling was that this service was supposed to be ready when the iPad was launched, but interminable negotiations with TV broadcasters and cable TV networks have slowed progress down and anyway Apple didn’t need a hot new product with the iPad and iPhone 4 around. However now that Hulu Plus has launched, it is unlikely that Apple could be denied the programming it needs for what might be called for iTunes Plus, without content owners showing preference to Hulu and triggering legal challenges.
We would expect the service and the device to be launched together and for there to be at least a two month delay between announcement and delivery. In order to be delivered in the US in time for Thanksgiving, Apple could announce it no later than early September, and failure to do so, with all the hype there has been around this type of product, and with the Google TV rival emerging and Google announcing Lean Back TV last week, would leave Apple miles behind in the portable TV space. Apple it needs to have a strong offering in this area if its new mobile advertising plans are to come to fruition.
If Apple manages to get this streamed TV service off the ground then it could follow up with Apple branded TV sets before the end of the year or early next.