Trends Report

Why Apple Can't Do To Video What It Did To Music

But What It Can Do To Yet Succeed

November 30th, 2007
James McQuivey, PhD, VP, Research Director
James McQuivey, PhD VP, Research Director
With contributors:
April Lawson , Ellen Daley

Summary

Apple's appetite for a slice of the video pie has proven bigger than its reach. The iTunes video experiment of selling TV shows for $1.99 and movies for upwards of $9.99 — although a great service to the 4% of online adults who regularly buy video on iTunes — is not a mainstream model. Importantly, it won't translate into what Apple really wants: increased demand for sophisticated hardware like the iPod touch and Apple TV. Those devices still have a role, but they won't go beyond early adopters without opening the business model to include video experiences not offered today. Media strategy professionals take note: there's still plenty of opportunity to stake a claim in video territory.

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