Last week Apple finally released its AppleTV. The future of television is changing and the cable industry should be nervous.AppleTV is really a very "special wireless ipod" that hooks up to an HDTV. The rub with this new product is the HDTV connection limits its use to only high-end users who own an HDTV. Also, iTunes (Apple's music and video sharing software) only sells standard definition programming so the High Definition connection is essentially negated. So why should the cable industry be nervous of a devices that has such a limited audience?
It's the potential of the device Apple has developed. Apple thinks about the future when it creates something. It may or may not take-off but Apple plants the idea of what is to come. Don't you hate it when cable companies keep increasing rates on a ton of channels you'll never watch? With AppleTV you'll be able to watch the shows you want, when you want. You pay for only what you need.
Are you a fan of Project Runway and have to pay for extended cable to get the Bravo Channel? No more. You'll be able to get the shows you want downloaded the moment it's available. In the next few years, brand new TV shows will be released on iTunes for your AppleTV at the same time it's released on cable/dish/standard TV. The day your favorite TV show is released, your computer will download it and you'll be able to watch it anytime. No more waiting for a 10pm showtime.
How will the TV industry make money? Buy selling the shows directly to consumers. The movie industry has known for years that the real money is in selling the movies direct through DVD. Many movies made today make a lot more money with DVD sales than the theatrical release ever does. Heck, the movie industry is getting ready to release its product via download so the consumer gets the movies they want instantly and the movie industry no longer has to spend money printing DVD packaging. The TV industry is just following suit.
So what does this mean to you and me? In the next five years, cable will have new competition from the computer world as people "cut" their cable and plug wirelessly into their computers.
