Apple is making a more serious bid for the set top box market with 99 cent TV and $4.99 new movie rentals that are streamed through a smaller version of AppleTV.
Chief executive Steve Jobs introduced the new device at an event in San Francisco. It will cost $99, down from $229, and is available for pre-order today, arriving in about a month.
The new AppleTV will offer rentals exclusively, no purchases. This will eliminate storage issues. First-run HD movies will rent for $4.99 on the day of the DVD release.
AppleTV
HD TV shows are now 99 cents and commercial-free, down from $2.99. Partners include ABC and Fox, and Mr Jobs said he expects more to follow. “We think the rest of the studios will see the light and get on board with us pretty fast,” he said.
The new user interface is very user friendly, including recommendations and reviews. The downloads are fast enough that users can start watching within seconds of renting.
Users can stream Netflix if they already subscribe, as well as anything on YouTube, and videos and photos from MobileMe, Mac or PC.
The new AppleTV is one quarter of its predecssor’s size, small enough to hold in the palm of your hand. It has an HDMI connector and ethernet. “It’s silent, cool and tiny,” he said.
Introduced in September 2006, Mr Jobs admitted it hasn’t been a huge hit. But Mr Jobs said the same thing two years ago, and AppleTV hasn’t taken off since then.
“[Users] don’t want amateur hour,” said Mr Jobs, taking a dig at Google’s YouTube.
iTunes
Apple is alsi adding social networking features to iTunes, allowing user to see what their friends are downloading and listening to. Called Ping, the new music based social network will be open to 160m iTunes users immediately.
Users will be able to share songs and follow their friends. When a friend shares a song, followers can preview or buy it. Nearby concerts are listed, and users can announce that they are going to one.
More than 11.7bn songs, 450m TV episodes, 100m movies and 35m books have been downloaded from iTunes, making it the #1 online media store in the world.
But an even more impressive number Mr Jobs just shared is that Apple has 160m credit cards on file.
iPod
Apple has sold 275m iPods to date, and is unveiling all new designs for every iPod model. “It’s the biggest change in the iPod lineup ever,” said Mr Jobs.
The iPod Touch is the most popular version of the device. “An iPhone without a phone,” said Mr Jobs.
The new Touch is thinner and has the retina display screen that recently came to the iPhone 4. It runs an Apple A4 chip like the new iPhone, and includes a front-facing camera, HD video camera and FaceTime, Apple’s new video chat service, which works only over Wifi and with other iPods or iPhone 4s.
The new Touch models will cost $229 for an 8gb version, $299 for a 32gb version, and $399 for a 64gb version. They will be available next week and are available for pre-order today.
The Touch outsells Nintendo and Sony portable game players combined, said Mr Jobs, and has more than 50 per cent of the worldwide portable game player market. The App Store has delivered more than 1.5bn game and entertainment downloads have been made.
The iPod Nano is now a multitouch device, eliminating the clickwheel, and is almost half as small as its predecessor. The new Nano will be available for the holidays in seven colors, priced at $149 for an 8gb version of $179 for a 16gb version.
The new iPod Shuffle has a 15 hour battery life and comes in five colors costing $49.
iOS
Mr Jobs began today discussing Apple’s iOS platform, which runs on the iPhone, iPad and iPod touch. Mr Jobs said more than 120m iOS devices have shipped so far, and that Apple is activating 230,000 new devices per day.
A new version, iOS 4.1 is being unveiled, with improved gaming and photo features. iOS 4.1 will be available next week as a free download via iTunes.
Mr Jobs also gave users a sneak peek at iOS 4.2, which will be geared specifically for the iPad. It will include wireless printing, and something called “AirPlay.”
AirPlay will allow users to stream audio, video and photos to multiple devices, including AppleTV.
