rtdunham said:
Questions I don't know the answers to, but that seem pertinent:
1: the article says, ""the DVR market seems to be a commodity whereby all players will eventually have similar hardware and software longer term..."
Q: isn't that the case with mp3 players? apple wasn't first, but it's won--and won big--with a better product even though all mp3 players have similar hardware and software and continue to converge.
Q: how exclusive is apple's click wheel? Do we conclude it is THE best solution for a music player, and also that it cannot be copied? Is IT and it alone THE key to the iPod's success?
2: the article says, "Analysts said that Apple's focus on... iPod ...would probably preclude it from going after money-losing TiVo, whose growth strategy has been questioned due to the rise of cheaper DVRs being deployed by cable TV providers."
Q: hasn't there been a rise of cheaper mp3 players?
Q: what about the rest of the argument--who's the music equivalent of cable tv providers? SONY's a music company and deployed music players. Is there a scenario by which Apple could become a cable TV provider? Or would an iTunes Video Store be a functional equivalent in terms of this argument?
Looking for thoughts, answers....
peace
terry
Here's my take:
MP3 players are somewhat a commodity, it terms of basic design and hardware. However, things like supported protocols(AAC, WMA, etc.) create differences. Also, online store support further differentiates players. Add in things like interface design, software, and form factor. All together, the mp3 player is not a true commodity, where one product is largely identical to another, with no differences if one chooses one brand over another. That would be the case with windows pc's or say, RAM.
The click wheel, afaik, is patented by Apple. I don't know if its the best solution ever, but its the best out right now. I wouldn't say its the only reason the iPod is a success, but its definitely a big factor.
Cheaper mp3 players: Yes and no. Yes there are cheaper mp3 players, but with reduced capacity and features. In each price segment, the iPod is priced comparably with directly competitive models. However, overall, pricing is falling, as is typical of all electronics.
I'm not sure I understand your last question. But there is no real music equivalent for cable providers. I guess the closest would be music stores, but that really isn't the same at all. And Sony is also a movie and tv production house, but they also make dvrs. But I think your confused about the role of cable tv providers. They are, if anything, more like movie theaters, handling the distribution of content and providing access for consumers.
I can't see any reason why Apple would want to become a cable operator. Besides, cable companies are treated somewhat like a utility, awarded regions by the FCC to provide tv service to a given area. It is virtually impossible to have complete national coverage. Cable is also subject to federal regulation. I don't think Apple has any interest in the slightest to get into that. Now an Apple video store could very likely happen. But its a completely different concept. It would probably be more like a Blockbuster Video than a cable company, offering video on demand, and probably more like rental than purchase. It would compete with cable companies for your time/money, but it wouldn't really be anything like a cable company. Also, what everyone seems to confuse is that TV is not the same as film. If anything, an Apple video store would probably just be film only. Film companies would be easier to get on board. They don't care how you watch or get it, as long as they get their cut. TV on the other hand relies on advertising, typically providing content basically for free. I'm not sure if TV is anywhere close to figuring out how to replace the ad revenue.