Apple Computer Inc. revolutionized music with the iPod. Is video next?
The computer-maker has scheduled an announcement for Monday that industry experts widely expect will be the debut of an iPod that plays video.
Although chief executive Steve Jobs revels in leading prognosticators astray, Apple’s entry into the fledgling market for portable video could broaden the appeal of watching movies and television shows on the go – and potentially open new revenue streams for studios and networks.
But, analysts cautioned, Apple may find breaking into video significantly tougher than the wildly successful ride it has enjoyed with iPod. Unlike music, which people have carried with them since the transistor radio, video is usually watched at home on the couch.
“The question I’ve always had is, I’m not sure what the level of demand for portable video really is,” said Mike McGuire, a personal technology analyst with Gartner Inc. “It’s questionable.”
But the market is growing. Sony Corp.’s PlayStation Portable, for instance, plays movies on its relatively small screen. Sony and other studios were surprised by the demand for titles that work on the PSP. There are twice as many movies available for the PSP as games.
“It exceeded our expectations because it’s a whole new business,” said Ben Feingold, president of Sony Pictures Home Entertainment. “I think it’s important we migrate with lifestyle … as people spend more time commuting in places where they have what I call variable spare time – like at the car wash.”
Analysts said they expected Apple to offer short clips through its iTunes Music Store.
“From our understanding, the first set of video content available from the iTunes store will be music videos and video podcasts,” American Technology Research analyst Shaw Wu wrote in a research report. “At this point, we do not anticipate full-length feature movies but would not be surprised to see some test movies in the future.”
Key to the success of any player would be Apple’s ability to secure material people want to watch from content producers and to safeguard it against widespread copying. Jobs is also Chief Executive of Pixar Animation Studios, and has strong ties in Hollywood.
Apple declined to comment.
One maker of portable media devices said Wednesday that it would welcome Apple’s entry into the market.
“I think we’d be happy that there would be more visibility to this market sector,” said Lisa O’Malley, a brand manager for Creative Labs, which makes Zen portable media players. “Anyone joining the market would encourage the content providers to make more content available – TV and movie studios, music labels.”
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