So… Why do I need cable TV again?

January 15th, 2008 | by Jeremy |

Today, Steve Jobs and Apple introduced an updated version of the Apple TV - a device that plugs into your TV and allows you to download and watch podcasts, buy TV shows, buy movies, rent movies, listen to iTunes music, watch YouTube videos and view photos on Flickr and your .Mac account. And it does high definition.

This $230 device could be a media game changer. The previous version of the Apple TV allowed you to do some of these things, but you had to make the purchases from your computer and then sync your computer to the Apple TV. Now you can do everything directly from the Apple TV. Plus, it will sync with your computer as well so you can copy that media to your iPod or iPhone.

Look at what Apple TV could take the place of:

- Netflix/video on demand. Rent your movies through Apple TV instead of waiting for them to arrive via Netflix. (yes, Netflix recently announced the ability to rent movies online, but you still need a computer. Again, Apple TV takes care of that barrier) And the amount of movies and the interface to find them is much better than the video on demand service offered through my cable company.

- Cable TV. Digital Basic with Time Warner Cable is $64/month. TV shows on iTunes are $2 each. Do I watch 32 cable TV shows a month? No. I can get the local broadcast networks for free and with a digital antenna, it will look even better than the “rabbit ears” experience you may have had 20 years ago.

- TiVo. I love my TiVo but I think I’d love an Apple TV even more. And if I can buy my shows commercial free, I don’t really need to record them, so I guess TiVo and its $13/month service charge is gone.

Also, people normally have a better sound system hooked up to their TV than they do to their computer, so Apple TV being able to access all your iTunes songs is a big plus as well. The ability to display photos and such is cool, especially if you have a large flat screen TV hanging on your wall. You can use it as a type of giant digital picture frame when you’re not watching TV or movies on it.

Since I sell local TV advertising on the major cable networks, it makes me wonder what my job security will be like in the future when FX can now send viewers an episode of Nip/Tuck directly to an Apple TV over the Internet instead of going through Time Warner Cable.

  1. 5 Responses to “So… Why do I need cable TV again?”

  2. By Dan on Jan 17, 2008 | Reply

    The change with Netflix’ streaming (unlimited) is pretty cool — I can keep a tab open with a TV show or movie streaming while I surf whereever I want. I can only assume they’ll increase the number of movies available (And the cost is much less than Apple — since I can sample without paying)

    And yes, your last comment is the game-changer. Pipes don’t matter — eyeballs do. How do local media companies keep people’s interest?

  3. By Jeremy on Jan 17, 2008 | Reply

    How do local media companies keep people’s interest?

    They do it by creating their own unique, original, local content instead of just rebroadcasting or repackaging someone else’s.

    TV stations used to be really good at this. There were local news magazine shows and children’s shows and cooking shows and all sorts of things. But then syndicated programming came along and killed all of that. “Why should we make our own children’s show when we can buy one for just a 50/50 barter plus $1,000?” Well, because in the not-too-distant future (if not already) people will just go directly to that show without watching it via your TV station.

    The only local content TV stations seem to want to produce today is news and sports. They’re headed in the right direction (as much as I hate to admit it) with shows like Good Company on Channel 3 and That’s Life on Channel 8, but they need to go farther.

    Game shows are cheap to produce, why not a local game show? People would be more excited about it because they could actually go there in person to watch it because it’s downtown in their own city and they have a better chance of being on it than on the Price Is Right.

    Food shows. The Food Network does great. What about an entire show that visits a different restaurant every week or goes into the homes of local chefs or something like that.

    A local show with a late night talk show format. (like The Jeremy Borger Show!)

    These types of shows are all relatively cheap to produce. Yes, they’re more expensive than just buying a syndicated show. But as I said, in the future the syndicators won’t need to make 100 deals in each DMA across the country. They’ll go around the broadcast TV station middleman.

    Plus, with the Internet, TV stations no longer have 24 hours a day, 7 days a week to worry about filling. They have an unlimited amount of programming they could produce and put online.

    Is anyone looking for a programming director? :)

  4. By Erik on Jan 20, 2008 | Reply

    What about everything on demand for a flat fee? (without the use of a computer) That is what I would liek to see.

    Don’t have to download unles syou want to “own it.”

  5. By Jeremy on Jan 21, 2008 | Reply

    Netflix’s new online delivery system has everything on demand for a flat fee, but you have to have a PC. Netflix is currently working with LG to build a set up box that will allow you to watch streaming movies without a computer, like the Apple TV.

    Apple TV does have some free content, such as podcasts and stuff, but not the more commercial titles you’d probably be interested in.

    I think everything on demand for a flat fee right to your TV is coming. Not sure who’s going to end up bringing it to the consumer… Netflix, Apple or cable companies with better video on demand solutions.

    But again, depending on how much TV you watch and what the “flat fee” is versus the cost per movie or TV show, the ala carte model might be better for some consumers…

  6. By Jeff on Jan 21, 2008 | Reply

    I peaced out cable.

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