Ha, that got your attention…
Cool stuff from Apple again. The movie thing bugs me a bit, though. It is quite expensive, don’t you think?
Since you can’t just burn a DVD, you need this iTV thing to watch the movies on your TV. So, compare the costs of watching movies in addition to your TV set:
Convenience Level: High (just pop in your DVD)
Mac (or PC): $1300
High Speed Internet: (enter your cost here)
AirPort Express: $129
Convenience Level: Medium (Wait for download, know how to set up stuff, keep backups, buy more harddisks to store additional movies…)
Even if you assume that you already have the infrastructure in place, it still is a substancially larger investment and a whole lot more “work”.
Compare that to the economics of songs from the iTunes Store. If you have a PC, the album is $9.99 plus about $1 for a CD-R. Downloading songs is relatively quick even with medium bandwidth and burning to CD is a breeze. Once on CD, you can take it anywhere and you have a built-in backup. The cost/value proposition seems to be all right, even if you compare it to buying a physical product at Virgin.
If you store your movies on an iPod, it is about $3 per movie of storage. But if you loose your iPod or if it dies, you have no backup. So you need additional means of backing up.
I am sure that I can manage the technicalities of using the iTunes Store to get movies but I know more people who will be out of their depths.
So this can only be a first step targeted at early adopters. Movie companies will need to offer more to make downloads a long term success with happy customers.
Another thing to note: CoverFlow was actually aquired from a small developer, so Apple did the right thing this time. And it shows why Core Animation is such a big deal.