Apple wants to revolutionize the way we get our television delivered by offering all you can watch TV for $30. (AP)
In June 2001 Apple introduced the world to iTunes, a music marketplace that largely changed the way we buy music. And now, almost a decade later rumor has it that Apple wants to revolutionize the way we get our television delivered by offering all you can watch TV for $30.
Before Apple can offer consumers the opportunity to ditch their cable subscriptions for an all-you-can-watch plan it has to convince the television networks that it's a good idea, just like it did with the music labels.
Given the numerous side projects of networks, like CBS' TV.com, and the attempts by cable companies to restrict online streaming to customers, Apple faces a big hurdle before it can offer a $30 unlimited TV package.
That said, with more and more networks looking for a way to monetize their content online, Apple may be able to capture their attention and the eyes of 100 million iTunes account holders with a plan that puts streaming TV on any device with iTunes. With Hulu reported to start charging for content in 2010, Apple may be able to leverage its close ties with Disney to kick off the streaming service with a respectable selection.
So, will lightning strike twice for Apple, allowing the company to convert another generation of media consumers who have grown accustomed to consuming for free into a paid monthly purchase?
Yes, but only if it is able to offer consumers easier access to better quality TV shows -- on their televisions and mobile devices.
To start with;
• No ads in the programming.
• Offer true HD. If it doesn't look as good as what the cable company is pushing forget it.
• Live sports broadcasts. If Apple wants to replace cable it can't do it without football, basketball, NASCAR and hockey.
• It has to work anywhere. iPod, iPhone, Windows, Mac, Windows Media Center and more; it can't just be on your TV.
Assuming Apple is able to convince the networks to offer a $30 all-you-can-watch TV package to the masses, will it be enough to bring back consumers who, to save money or time, cut their cable subscriptions?
The Apple Macintosh was unveiled in Cupertino, Calif., on Jan. 23, 1984, and was an important milestone in the development of the personal computer. The main console contained a 32 bit microprocessor, a built-in 3 1/2 inch disk drive, a nine inch display, 64k ROM and 128k RAM, and the suggested retail price was $2,495. The success of the Macintosh helped Apple go public the same year.
Under Steve Jobs' leadership, Apple has become famous for beautifully designed and innovative products, including (clockwise from top left) the iPhone, the Macbook Air, the iPod and the iMac (seen here in its original version from 1986).
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Jobs grew up in northern California, jumping into its entrepreneurial tech culture at an early age. He and Steve Wozniak founded Apple Computer in 1976.
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The Apple Macintosh was unveiled in Cupertino, Calif., on Jan. 23, 1984, and was an important milestone in the development of the personal computer. The main console contained a 32 bit microprocessor, a built-in 3 1/2 inch disk drive, a nine inch display, 64k ROM and 128k RAM, and the suggested retail price was $2,495. The success of the Macintosh helped Apple go public the same year.
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Jobs, shown at home in 1982, became famous for his intense concentration on high-quality new products and his zen-like philosophical stance. Jobs has said, "There's an old Wayne Gretzky quote that I love. 'I skate to where the puck is going to be, not where it has been.' And we've always tried to do that at Apple. Since the very very beginning. And we always will."
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Former PepsiCo CEO John Sculley was hired to run Apple in 1983. Sculley and Jobs clashed over the direction of the company, and Sculley fired Jobs in 1985.
Diana Walker, Time & Life Pictures / Getty Images
Jobs founded a new company soon after leaving Apple. Ross Perot was the lead investor in NeXT, which was known for technical excellence and high prices. Apple bought NeXT for $429 million in 1996, and Jobs returned to Apple as CEO.
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Apple has long been seen as David to Microsoft's Goliath, and Steve Jobs' image as a anti-establishment rebel has helped seal Apple's reputation among creative types.
Julia Malakie, AP
Computers made by Apple have been used widely in the music and film industries. Jobs bought The Graphics Group from George Lucas for $10 million in 1986 (Lucas reportedly needed the cash to pay for a divorce) and the company eventually became Pixar Animation, which Disney bought in 2006 for $7.4 billion.
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Jobs introduced the iPod in 2001, a music player which has helped revolutionize the music industry. There are now several iPods models (an iPod Mini is shown here).
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Jobs survived pancreatic cancer in 2004, but rumors of his ill health have circulated ever since. He took a medical leave of absence in January of 2009 after admitting that his health problems have become more serious. He returned to work in June, two months after a liver transplant. Jobs is shown here on September 9, 2008 in San Francisco, California, announcing a new version of the popular iTunes software, and on August 7, 2007 in Cupertino, California.
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We asked two recent cable cutters to weigh in on the option of paying a monthly fee to bring TV back in to their homes.
Tobias Buckell, who recently let go of cable to cut down on wasted time, would give Apple's take on TV a chance.
"Hell, it'd be tempting if it came without ads, just as the existing iTunes programs do. One reason I went without cable is so that I could not just timeshift my watching, but reduce wasted time watching reruns of shows I'd already watched and getting ad clutter out of my life, just like I use a popup blocker. If there's a service that works like Watch It Now, I'd be very, very tempted..."
But, Neal Frankle, of Wealth Pilgrim, wouldn't be so welcoming of a new TV service provider into his home.
"I shut off the cable and saved something a lot more valuable than my money -- it was time"
I don't care if they gave me TV for free, it would still cost me the time I waste in front of the tube so I don't want the temptation. In the short time I've gotten rid of it my family spends much more time together, the energy level in our home is great and it's an entirely new life experience.
Apple...no thanks. There's sure to be differing opinions on the possible $30 a month TV plan from Apple, but one thing's for sure. So long as Apple isn't the only place to get the content, consumers will win by having greater options for getting their entertainment.
Service Monopolies When it comes to cable TV, Canadians have pitifully few choices. On the west coast, Shaw reigns supreme, while in Southern Ontario and parts of the east, Rogers is king. Regardless of where you are in the country, chances are you've only got one or two options when it comes to cable. By controlling their respective markets, large companies like Rogers, Shaw, Vidéotron, Cogeco and EastLink are able to do, and charge, what they like.
Service Monopolies When it comes to cable TV, Canadians have pitifully few choices. On the west coast, Shaw reigns supreme, while in Southern Ontario and parts of the east, Rogers is king. Regardless of where you are in the country, chances are you've only got one or two options when it comes to cable. By controlling their respective markets, large companies like Rogers, Shaw, Vidéotron, Cogeco and EastLink are able to do, and charge, what they like.
AP
Ever Rising Costs (Bill Deregulation) In April 2007, Minister of Industry Maxime Bernier ordered the deregulation of Canada's telecom industry - a move that allowed cable companies to drastically increase their service charges. Bernier insisted the new rules would lead to lower prices for about 60 percent of Canadians, but most analysts gloomily predicted the opposite, and in reality, cable rates have continued to rise.
duckiemonster, Flickr.com
Terrible Customer Service Speak to anyone with a cable hookup in Canada, and chances are you'll hear a horror story. Waited home all day for a technician that never came? Been kept on hold for hours while waiting to speak to a representative? Told you'd have to pay for a mistake the company made? With few alternatives, these and countless other irritants seem to be the price we have to pay to watch TV. So notorious is cable company service, hate sites have popped up to emphasize the point. To join in the vitriol, check out www.ihaterogers.ca, www.ihatebell.ca or www.ihateshaw.com.
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You Call That HD?? Since the introduction of high-definition cable in Canada, there have been numerous complaints about the quality of the HD programming on offer. Among subscribers, the biggest complaints concern the poor quality, 'zoomed in' image featured in local HD broadcasts, as well as awkward video cropping. In order to see 'true' HD programming, subscribers are forced to buy expensive add-on channel packages.
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Canadian Content/U.S. Sourcing Rules Now don't get us wrong: we are not against Canadian content rules. Broadcasters are required to fill 60 percent of all programming between 6:00am and midnight, and 50 percent of programming aired between 6:00pm and midnight, with Canadian content. The rules allow domestic shows to get air time, and helps support our local television industry. That being said, more than a few disagree with the quotas. Most opponents cite a lack of freedom of choice for consumers, as well as unease with government intervention in culture.
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The Death of Local News There's a crisis going on right now in local television. The current rules allow cable and satellite companies to take local programming (i.e., your local news and weather broadcasts) without paying for them. The cable companies then charge you for the shows they take for free. With so many channels on offer, small broadcasters can no longer attract the same amount of advertisers, and are rapidly spinning into debt. To counter this, broadcasters like CTV, CBC and Global are launching campaigns to raise public awareness and request that cable providers compensate broadcasters for the programming they take. See SaveLocalTV.CTV.ca
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Eager Bill Collectors It happens to the best of us. One month you're swamped with life, and you get a bit behind on your bill payments. While it seems that the hydro and water companies can wait for your payment (I guess they're just a little more understanding?), the phone starts ringing right away just a couple of days past your cable bill due date. Add to that the now-illegal practice of negative option billing (services are provided automatically, and the customer must pay for the service or specifically decline it in advance), and it's clear the cable companies are interested in one thing only: your money.
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Limiting Download Rates to Counter Internet TV Statistics show most people aged 16-24 watch their favourite programs on the Internet instead of TV, and this trend has cable companies worried sick. To counteract it, Canadian telecom providers (cable, telephone and internet) have colluded to slow download bit rates in order to frustrate those attempting to download TV shows. This is particularly irritating here in Canada since many TV programs legally available on iTunes aren't accessible to those with non-US IP addresses.
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Dishonest Sales Tactics To lure you in and sign you up, they'll promise the world. Hundreds of channels, stunningly real HD programming, break-neck speed Internet and flawless service. In reality, you get much less, and usually with a great deal of frustration attached.
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Censorship Though we're blessed with some of the most liberal censorship rules in the world, there are still a number of things you'll never see or hear on prime time TV. While we agree that profanity and nudity isn't appropriate during daytime hours, some cable companies have taken censorship a bit too far. In a move that drew numerous complaints, in 2008 Shaw Communications excluded OutTV (an LGBT station) from its free preview week, moved the channel into a block of pornographic offerings, omitted it from promotional materials and basic packages, and made it the sole by-request-only channel of its category, effectively requiring interested viewers to out themselves to the company. In December 2008, Shaw was ordered by the Canadian Radio-television and Telecommunications Commission to carry and promote OutTV alongside its other channels, though for the most part Shaw has refused.
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