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
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.

Want to read the full report?

This report is available for individual purchase ($1495).

Forrester helps business and technology leaders use customer obsession to accelerate growth. That means empowering you to put the customer at the center of everything you do: your leadership strategy, and operations. Becoming a customer-obsessed organization requires change — it requires being bold. We give business and technology leaders the confidence to put bold into action, shaping and guiding how to navigate today's unprecedented change in order to succeed.