Apple to roll-out iTunes movies and 'one more thing'

Apple Insider ^ | 9/4/2006 | By Kasper Jade

[Swordmaker]

The charismatic leader and co-founder of Apple Computer, Steve Jobs, plans to summons the worldwide media to a special event this month in which he'll usher in a new chapter in the company's digital media strategy, AppleInsider has learned.

Although the semi-official word out of Apple Americas is that invitations to the event have "not been sent" out, a seemingly inadvertent leak out of Apple Europe last week pinned the affair for Tuesday, September 12. It will be hosted by Jobs in a yet-to-be disclosed California location and beamed via satellite throughout the world.

Jobs will have much to talk about during the event, sources familiar with the chief executive's plans have said, including new iMacs and a much-anticipated update to the iPod nano. But the real push, they say, will be tied to the big screen.

After what has seemed like nearly two years of rampart speculation and unbridled enthusiasm on the part of its fans, the Cupertino, Calif.-based Apple is ready to introduce its al la carte feature film download service as part of iTunes.

Though slightly battered in his negotiations with major motion picture studios, Jobs is expected to announce that flicks from at least one major studio will be immediately available for download starting at just $9.99 a pop. In very much the same way national television networks elected to join the iTunes video bandwagon after some initial hesitation, additional studios are likely to follow suit in the coming months.

For some time now, published reports have insinuated that Apple and Jobs would be unwilling to launch a movie download service without a wide, touch-screen video iPod player to coincide. But as he reclines with his feet perched on the sprawling Apple boardroom conference table, Jobs is likely enjoying a chuckle or two -- he's been planning something bigger, something better, something everyone will want.

Just as he asserted that consumers are more eager to own their music tracks for 99 cents a piece rather than rent them on a monthly basis, he realizes that few are willing to plunk down ten bucks for a two-hour movie that they'll have to watch with their neck cranked towards a miniature screen resting in the palm of their hand. As someone at the forefront of the motion picture industry, he knows films are designed for the big screen and later adapted for the home living-room theater.

For these reasons, Jobs many months ago commissioned an elite group of Apple engineers to get the ball rolling on an intuitive hardware solution that would more closely tie the company's digital media strategy to the living-room. And so AppleInsider has been told, Apple has been quietly developing a video streaming device that will interface with an updated version of its iTunes jukebox software.

It's arguably been one of the most closely guarded secrets at Apple since the evolution of the first iPod digital music player, which forever altered the landscape of the music industry when it was introduced in October of 2001. Only a select bunch inside Cupertino have heard of the latest device and even fewer have seen it. Therefore, further details are few and far between.

Insiders can only presume the device will take up the form of a video-enabled version of Apple's existing AirPort Express wireless base station, which lets users stream their iTunes music tracks from their computers to their home stereo receivers. It also acts as a wireless 802.11 router and printing hub.

Though largely unconfirmed, there has been anecdotal evidence to support the notion that the streaming device may find its way into the AirPort Express product family. In particular, Apple last month began to constrain new shipments of AirPort Express modules to its US-based retail distributors, promising fresh shipments at a later date. In an August 6th filing, the company also reapplied for an 'AirPort Express' trademark with the United States Patent and Trademark Office.

Still, it should be noted, that although the streaming device has been targeted for an unveiling during this month's affair, it has yet to receive Jobs' official stamp of approval. Insiders say spotted development of the device, most likely related to its embedded firmware, is still undergoing tests. And unless completely satisfied with its performance, Jobs could delay roll-out until a slightly later date.

Nevertheless, this month's media event will bear the fruits of several other Apple product initiatives. First and foremost, insiders have said, will be an introduction of the company's largest and most stunning iMac to date: a widescreen, possibly high-definition model, built around what appears to be a 23-inch display. As AppleInsider reported last week, existing iMac models will also be refreshed around Intel Corp.'s new Core 2 Duo mobile processors, formerly reference by the 'Merom' moniker.

With dozens of tractor-trailer-mounted container ships seen leaving Foxconn's Far East manufacturing facilities over the past week, Apple's next-generation iPod nano digital music players also appears to be a lock for the event.

As AppleInsider exclusively reported back in April, the company has been toiling away on a redesigned iPod nano that will feature controller chips from Samsung, at least double the storage capacity of today's models, and come clad in non-scratch metal alloy enclosures. Despite rumors of delays, it was also reported that the new players remained on track for an introduction this month.

This September promises to be the start of exciting new times for Apple, one of the self-proclaimed pirates of Silicon Valley. And it better be -- Jobs and Co. are betting on it big time.

[Swordmaker]

Something VERY special is rumored to be in the Apple offing...

Very special

"Next week's media event will bear the fruits of several other Apple product initiatives. First and foremost, insiders have said, will be an introduction of the company's largest and most stunning iMac to date: a widescreen, possibly high-definition model, built around what appears to be a 23-inch display. As AppleInsider reported last week, existing iMac models will also be refreshed around Intel Corp.'s new Core 2 Duo mobile processors, formerly reference by the 'Merom' moniker," Jade reports. "With dozens of tractor-trailer-mounted container ships seen leaving Foxconn's Far East manufacturing facilities over the past week, Apple's next-generation iPod nano digital music players also appears to be a lock for the event."

Apparently it is even more special than that!

If you want on or off the Mac Ping List, Freepmail me.

[martin_fierro]

"Something VERY special is rumored to be in the Apple offing"

Hope it's better than this.

[Swordmaker]

I would swallow this with about a ton of salt...

[HAL9000]

My predictions for Sept. 12, pure speculation -

* Core 2 Duo MacBooks

* New iMacs and iPods

* New info about Leopard

* The Beatles on iTunes

If anything bad happens on Sept. 11th, all bets are off.

[HAL9000]

One more prediction -

Sept 15th, 4:30 p.m. EDT -

* Apple's independent counsel releases report on stock option irregularities

* Apple issues revised earnings statements

* Al Gore runs for cover

[ikka]

My suggestion: it will involve a cell phone of some kind, far superior to the ROKR and other lame attempts.

[Richard Kimball]

What would be cool would be if it was a television base station with airport capabilities and something like a 500 gig hard drive. Operate iTunes off your television and play movies. That would be cool. I don't know what I'd do with our shelves if we didn't have six zillion movies clogging them. If Jobs can pull off the movies playing big screen on your television while M$ is still working on their iPod killer rewarmed lookalike with a touch pad designed to look like a scroll wheel and "gadgets" for Windows Vista (anybody believe it will still roll in November?) he could send Ballmer into conniptions.

I think it's pretty much a given that he'll have contracts worked out with the Disney empire (which includes ABC, Pixar and Touchstone). If this goes, the movie companies could jump on fast, and it would be the final nail in the coffin for video stores and one step closer to eternity for many theaters. Microsoft still has a huge warchest, but they haven't really moved forward since Windows 2000. This could be very interesting.

[Boss_Jim_Gettys]

Ballmer? Conniptions? Never!

Link

[cowboyway]

I don't know what I'd do with our shelves if we didn't have six zillion movies clogging them.

Not to mention the pile of DVD's that don't work anymore or the missing DVD's that can't find their way back home after being loaned out.

I didn't jump on the iPod bandwagon, but if this new product works as you suspect I might have to have one of those.

[daviddennis]

A couple of interesting things I notice here:

(1) The $9.99 price point is exactly what's needed to compete with DVD. People are not going to pay the $14.99 price rumored earlier. Jobs obviously had to fight like a banshee to get "at least one studio" to support the $ 9.99 level.

(2) A 23" iMac doesn't make much sense unless it includes a beefed-up Front Row to support these movies. I don't think it's going to be a separate device. AirPort Express has trouble (at least in my house) streaming from my PowerBook to a remote location. I don't think wireless is good for streaming.

(3) Movies on my 23" Cinema Display are spectactular. I think people will love this if Steve can get the 23" iMac down to a decent price point. I paid $1,800 for my Cinema HD Display a couple of years ago.

D

[Fire_on_High]

Well, of course they gotta keep releasing The Next New Thing, but I'm firmly of the opinion Win2k was the pinnacle of their work...everything since is a step (or several) down.

[Terpfen]

A revised Front Row would almost be required if this AirPort Express streaming stuff is true.

[Dont Mention the War]

I think people will love this if Steve can get the 23" iMac down to a decent price point.

I am drooling over the possibility of a 23-inch iMac. I almost wouldn't care if screen size was the only thing different from the current model.

[TheBattman]

Although I too am hoping for something a littel better than that, have you hard that thing?

[NinoFan]

I hope the one other thing is an HMD that you use to view the movies.

[Alter Kaker]

I think people will love this if Steve can get the 23" iMac down to a decent price point. I paid $1,800 for my Cinema HD Display a couple of years ago.

I don't mean to be pedantic and this is somewhat besides the point, but what exactly is the difference between a "price point" and, say, just a "price?"

[libravoter]

I don't mean to be pedantic and this is somewhat besides the point, but what exactly is the difference between a "price point" and, say, just a "price?"

In my experience, "price point" is a mix of "base price" and "meaningful price". So a price point of $999 for an iMac wouldn't be the price all iMacs would sell for because of add-ons and extra memory and such, but the price that demand would be high.

[daviddennis]

A price point refers to the psychological impact of a price.

For example, if the new iMac was $999, the situation appears significantly different to the consumer than if it were $ 1,000. The actual price of an iMac was $1,299. Reducing it to $ 999 creates a very significant impact in the mind of the consumer, and so it is thought of as a good price point to "hit".

Hope that helps.

D