By Richard Menta 11/09/05
There were quite a few naysayers among the pundits a couple of weeks back when Apple introduced an iPod that can play video content. This included wary executives from NBC and CBS who resisted Apple's initial dialogue to lend their best shows on sale as iTunes downloads. ABC did not resist, mostly due to Disney's desire to mend bridges with Pixar. They made two of their highest rated shows available on the service.
The result was the sale of over a million video files on iTunes in a little over two weeks, bringing in $2 million in revenues at $1.99 a download. The end result is a wake up call that pushed the executives at NBC and CBS to action.
The 30GB iPod Video is available on Amazon
The announcement the other day that ABC's competitors would start their own service was a pure reaction to iTunes initial success. CBS will team with Comcast and NBC with DirectTV to provide these on demand services. Obviously, these were services that were in talks already by the swiftness of their announcements. The ABC deal is what pushed both NBC and CBS to sign.
These services differ from the iTunes service as the shows will be for rent at $0.99 an episode rather than sold for $2.00. It is a different financial model, but as Paul Resnikoff pointed out on Digital Music News all are really experiments to find the most sustainable models.
We have suggested that the major media put their content online for years. Resistance to change prevented that from happening for quite awhile. While the NBC and CBS deals are via cable/satellite delivery rather than online, it shows you how much influence Apple is having on the media conglomerates. Apple has the tendency to leave its competition in the dust and the fear of being left behind outweighs the fear that new business schemes will cannabalize the old. This is the first step to wider online delivery of both new and older content.
Other MP3 stories:
Can iTunes Resurrect Old Time TV?
Apple Portable Does Video. Notes.
The 4GB iPod Nano is available on Amazon