Apple

Apple is in talks with CBS and Disney to offer television programming using a subscription model, The Wall Street Journal reported late Monday but suggested that the venture could face a pretty steep uphill battle.

There's an understatement.

Apple has been incredibly successful with iTunes. It's almost become bad business to not play ball with Apple. But at this point, things are also very different. Consider the following:

• Hollywood has become more tech savvy.

• iTunes largely still uses a pay-per-view model.

• Limited subscriptions offer limited value.

• It's the content, not the network.

• But don't underestimate the network.

Disclosure: ZDNet is published by CBS Interactive, a unit of CBS.

Read more of "Apple's push into subscription TV: Why it will be a tough sell" at ZDNet's Between the Lines.

Would you pay $30 a month to watch TV via iTunes?

That's the pitch Apple has been making to TV networks in recent weeks. The company is trying to round up support for a monthly subscription service that would deliver TV programs via its multimedia software, multiple sources tell me.

Apple isn't tying the proposed service to a specific piece of hardware, like its underwhelming Apple TV box, or its long-rumored tablet/slate device. Instead, it is presenting the offer as an extension of its iTunes software and store, which already has 100 million customers.

A so-called "over the top" service could theoretically rival the ones most consumers already buy from cable TV operators--if Apple is able to get enough buy-in from broadcast and cable TV programmers.

That's a big if: Apple has told industry executives it wants to launch the service early next year, but I have yet to hear of a single programmer that has made a firm commitment to the company, which has tasked iTunes boss Eddy Cue with promoting the idea.

But industry executives believe that if anyone jumps first, it will be Disney, since CEO Bob Iger has shown a willingness to experiment with Apple and iTunes in the past: In 2005, Disney was the first player to sell its programming on iTunes, via a la carte downloads. And Apple CEO Steve Jobs is Disney's largest single shareholder, a result of Disney's 2006 acquisition of Jobs' Pixar animation studio. Apple didn't respond to requests for comment.

Network executives I've talked to are intrigued with the idea--they are eager to find new revenue streams--but are also wary, for multiple reasons.

Story Copyright (c) 2010 AllThingsD. All rights reserved.

The new Apple TV in action.

(Credit: Apple)

It might just be for the for the hobbyists, but Apple announced on Thursday that version 3.0 of its Apple TV software is now available for download.

According to Apple, the free software features a redesigned menu that the company hopes will make it easier to find the content users are looking for.

Perhaps the biggest news from the update is the addition of Apple's recently announced iTunes Extras and iTunes LP. The former gives users the opportunity to access special features like deleted scenes and cast interviews in various movies in the iTunes Store. iTunes LP allows users to view content related to specific songs, including interactive lyrics, performance videos, and other offerings.

Apple also announced that users can finally listen to Internet radio stations on the Apple TV. They can listen to several stations, including WCBS, K-Rock, and others. The company also added Genius Mixes, which lets users "listen to up to 12 endless mixes of songs that go great together, automatically generated from their iTunes library." iPhoto users will now have access to iPhoto Events. Apple also threw in its facial-recognition feature iPhoto Faces.

Overall, the update seems rather iterative. As an Apple TV owner, I was hoping for something ground-breaking. Instead, Apple has added a few extras and Internet radio. They're nice to have. But they certainly pale in comparison to my hopes for bigger and better things from this product. For now, it seems that the Apple TV is still just "a hobby."

Apple TV owners can download the free software now.

(Credit: Apple)

We're not sure what it will take for Apple TV to really take off, but a $100 price cut certainly can't hurt. On Sunday night, the company dropped the price of the 160GB Apple TV to $229 and killed the 40GB model, which had previously been priced at $229.

Considering Apple had already dropped prices for its Time Capsule wireless networked drives, an Apple TV price drop doesn't come as much of a surprise. On top of that, Microsoft is on the verge of updating the Xbox 360 to stream "instant-on" 1080p movies using Zune video technology, so Apple needs to do something to invigorate its little white video box in the face of increasing competition from plenty of players, including Roku.

Of course, after recently hearing Apple executive Phil Schiller talk about how $199 is a "magic price point" for the iPod Touch, you have to wonder why Apple just didn't hit $199 with Apple TV (I routinely beg Apple reps to drop the price to $199 in meetings).

Alas, in due time. However, before we see that price point, we expect to see a higher capacity, more expensive model in the not so distant future.

Comments? At what price would you consider getting an Apple TV unit? Is 160GB for $229 good enough?

Concept art for an Apple touch-screen Netbook.

(Credit: Gizmodo)

If you've been following the Apple Netbook gossip along with us the last few months, here's the latest tidbit, courtesy of Barron's:

A "veteran analyst," albeit a very anonymous one, has allegedly seen and touched Apple's rumored "slate-style" PC, which we like to call the jumbo iPod Touch. According to Barron's source, the new product will be announced in September, released in November, and carry a price tag of between $699 and $799. As previously reported, the tablet (or whatever Apple plans on calling) is ready to go but has been awaiting final approval from Apple CEO Steve Jobs.

As for concrete details about the device itself, the veteran analyst had only one thing to say about his or her hands-on experience: "The machine impresses with its display of hi-def video content. It's better than the average movie experience, when you hold this thing in your hands."

Now there's a shocker. (I don't think you'd have to be a veteran analyst to predict that).

The article also goes on to say that the PC industry is basically on pins and needles as it waits to see what Apple puts out. According to the phantom analyst, PC makers have paused production on next-generation Netbooks until they see what Apple's come up with.

Interestingly, while there's been a lot of talk about this being a media-centric device with a little Apple TV mixed in (what you'd expect from a giant iPod Touch), Barron's quotes Jon Peddie, head of Jon Peddie Research in Tiburon, Calif., as saying it will be a gaming machine as well.

"Gaming will be a big part of what this [the new device] is about," Peddie said.

However, as far as we know, unlike the veteran analyst, he has not seen or touched the device.

Comments?

Via Engadget via 9to5Mac via Barron's (subscription required to view full article)

It should come as no surprise that Apple isn't a big fan of Microsoft's "Laptop Hunters" ads, but some may be surprised to learn the Mac maker's lawyers reportedly called a senior Microsoft executive and demanded the ads be removed.

Kevin Turner, Microsoft chief operating officer

(Credit: Microsoft)

The topic of the TV ads, which feature prospective buyers comparing the prices and features of Apple laptops and Windows-based laptops, came up at Microsoft's Worldwide Partner Conference in New Orleans on Wednesday. Kevin Turner, Microsoft's chief operating officer, was at the conference to announce that Microsoft was planning to open its first stores this fall, with at least some of the locations likely to be right near an Apple store.

But the most intriguing part of Turner's speech was when he recounted a telephone call he says he got from Apple's legal department demanding that Microsoft remove the ads. Here's Turner's tale, according to Microsoft's official transcript:

And so we've been running these PC value ads. Just giving people saying, hey, what are you looking to spend? "Oh, I'm looking to spend less than $1,000." Well we'll give you $1,000. Go in and look and see what you can buy. And they come out and they just show them. Those are completely unscripted commercials.

And you know why I know they're working? Because two weeks ago we got a call from the Apple legal department saying, hey -- this is a true story -- saying, "Hey, you need to stop running those ads, we lowered our prices." They took like $100 off or something. It was the greatest single phone call in the history that I've ever taken in business. (Applause.)

I did cartwheels down the hallway. At first I said, "Is this a joke? Who are you?" Not understanding what an opportunity. And so we're just going to keep running them and running them and running them.

Apple did not immediately respond to a request for comment, but it may have good reason to be upset. Since Microsoft launched the ads, which are a response to Apple's "I'm a Mac" ads, there is evidence that the campaign may be radically altering value perceptions of PCs. According to a report in AdAge, BrandIndex says Microsoft's so-called value perception has risen steadily since the campaign began in March, while Apple's has fallen.

(Credit: CNET)

Apple Insider has unearthed proof that YouTube uploading will be built into the upcoming version of QuickTime that ships with OS X 10.6.

According to beta testers, several video-sharing options will be baked into the latest release of Apple's QuickTime media playback and editing software, including the capability to directly upload to YouTube. With the new QuickTime, you will be able to convert and upload any supported video file type to the online video service and all you will need is to be a registered YouTube user. You also will be able to seamlessly upload supported video to the MobileMe Gallery.

In addition to these new sharing options, iTunes also will offer ways to convert and export your video files to work on your iPod, iPhone, or Apple TV. All of these options will be available to you from the same convenient location and will automatically be imported to iTunes before being synced to your supported devices.

With this latest discovery, Apple will effectively offer built-in support for YouTube across all of its main products. Both the iPhone and Apple TV already offer YouTube support, along with some of Apple's other software including recent releases of iMovie. With the addition of direct uploads through QuickTime, Apple is providing support for desktop and laptop Macs.

(Credit: USPTO)

It seems the success Apple has achieved with gaming on the iPhone might spill over from pockets to living rooms. The makers of the iPhone have filed a set patents for a Wii-style wireless controller that looks to be made for the Apple TV and could be used for a number of applications.

The patent filing, including the image above, clearly shows an icon for Safari, as well as images that appear to be an iPhoto-like app.

(Credit: CNET)

The Apple TV is a fairly powerful product for what little it currently does. Don't get me wrong, I love the device. I have one and use it almost every day. It's the easiest way to get my movie fix on in my living room, and the Flickr and YouTube functionality is amazing, as well as fun at parties.

Right now, though, that's about all it's good for. Apple has put together a pretty good method for distributing games (and other apps) via the iTunes App Store. And because the basic operating system on the Apple TV is very similar to the iPhone's, it wouldn't be too big of a jump to develop for it.

I'm excited about the prospect. Imagine playing a game like Light Bike on a 720p TV with surround sound. And if Apple TV app development is anything like the iPhone's, you could see an avalanche of good, inexpensive games.

It wouldn't aim to compete with the Xbox 360 or the PS3, but the guys at Nintendo might want to keep an eye on what Apple ends up doing with this patent filing, if anything.

(Via PC World)

Apple appears to be preparing to get serious about Apple TV.

Apple is fishing around for more information about how people are using their Apple TVs.

(Credit: CNET Networks)

The company's link between the computer and the big-screen television has long been considered a "hobby" in the eyes of Apple CEO Steve Jobs, at least when viewed against major projects like the Mac, the iPod, and the iPhone. But signs have been growing that Apple is thinking about making a more significant investment behind Apple TV.

The most recent tip was a survey that Apple conducted online on Tuesday, which has since disappeared from the company's Web site although was captured by AppleInsider. In that survey, Apple asked Apple TV owners a number of questions about the sources of video they are watching on the device, as well as asking owners to describe the one thing they would change about the device.

Apple TV's shortcomings are well documented: it can't play DVDs, it can't connect to your cable or satellite service, and it doesn't have a browser for accessing the millions of Internet videos that can't be found on YouTube. But sales have nonetheless picked up in the year since Apple decided to open up the device to movie rentals through the iTunes Store, instead of requiring owners to purchase movies.