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By Ina Fried
Posted on ZDNet News: Oct 12, 2005 5:12:00 PM

SAN JOSE, Calif.--Apple Computer on Wednesday unveiled its long-rumored video iPod, as well as a new iMac and an updated version of iTunes that lets users buy music videos, TV shows and movies.

The iPod has "been a huge hit for us, so it's time to replace it," Apple CEO Steve Jobs said as he showed off the new video-capable MP3 player at an event here. "Yes, it does video."

The music players, which come in black or white with a 2.5-inch screen, will be available in a 30GB model for $299 and a 60GB version for $399. The new devices hold up to 15,000 songs, 25,000 photos or more than 150 hours of video, Apple said.

Apple products

Jobs kicked off the event by revealing a new iMac G5 desktop computer that will be similar to the current model but thinner. The 17-inch 1.9GHz goes for $1,299; the 20-inch 2.1GHz model is $1,699. The iMacs will come with a built-in, Webcam-style iSight camera with still and video capabilities, and a new Apple remote that lets consumers control music, photos and video from 30 feet away.

At the gathering, Jobs used the tiny white remote control like an oversize iPod Shuffle to play a Black Eyed Peas video and an "Incredibles" DVD and also to play home movies and photos.

The new lineup of features for iMac and iPod finally point the company more directly at the living-room space that Microsoft has attempted to carve out with its Media Center edition of Windows. Jobs introduced the iMac's new remote control and multimedia functions, called Front Row, saying they would enable people to experience music, video and photos "from the sofa."

However, the differences between the two platforms remain striking. Media Center PCs plug directly into a television or a television input device such as a cable TV box, allowing the devices to record television shows much like a TiVo digital video recorder, for example.

FAQ
Some details behind Apple's announcement
Following the announcement of new iMacs and a video-capable iPod, CNET News.com responds to some questions.

Many of today's Macs (and the new iPod) have a TV-out connection, but not a TV-in connection. Jobs highlighted only the ability to watch video on the iMac and iPod, without mentioning watching the programming on a television.

Indeed, for now, the video highlighted by Jobs is best suited for small screens, although Apple's software enhances the quality significantly for watching on a large screen. The 320-by-240 resolution can be expanded for a full-screen LCD (liquid-crystal display) TV or computer monitor, but will not have the quality of a DVD.

The cost of content
Then there's cost. With the new version of iTunes, unveiled five weeks after the debut of iTunes 5, consumers can buy non-burnable music videos for $1.99.

Tim Deal, an analyst with Technology Business Research, said he's unsure how consumers will take to the per-video cost.

"While I can appreciate the cool factor of portable video content, the price is a little difficult to digest," he said. "I think consumers are accustomed to seeing music videos for free from services such as Yahoo Launch and Comcast On Demand. Apple should give the videos away and charge for exclusive content only.

"This will, however," Deal added, "be a real boon for video podcasting and provides another distribution channel for independent content."

In addition to music videos, consumers will be able to purchase TV shows one day after their initial broadcast. Offerings will include ABC television's "Lost" and "Desperate Housewives" and the Disney Channel's "That's So Raven." It will take 10 to 20 minutes to download an episode, Jobs said. Each will cost $1.99 and will be ad-free.

Disney Chief Executive Officer Robert Iger took the stage with Jobs to introduce the sales of Disney- and ABC-owned TV shows through iTunes.

"We believe this is a breakthrough," Iger said. "This provides a SAN JOSE, Calif.--Apple Computer on Wednesday unveiled its long-rumored video iPod, as well as a new iMac and an updated version of iTunes that lets users buy music videos, TV shows and movies.

The iPod has "been a huge hit for us, so it's time to replace it," Apple CEO Steve Jobs said as he showed off the new video-capable MP3 player at an event here. "Yes, it does video."

The music players, which come in black or white with a 2.5-inch screen, will be available in a 30GB model for $299 and a 60GB version for $399. The new devices hold up to 15,000 songs, 25,000 photos or more than 150 hours of video, Apple said.

Apple products

Jobs kicked off the event by revealing a new iMac G5 desktop computer that will be similar to the current model but thinner. The 17-inch 1.9GHz goes for $1,299; the 20-inch 2.1GHz model is $1,699. The iMacs will come with a built-in, Webcam-style iSight camera with still and video capabilities, and a new Apple remote that lets consumers control music, photos and video from 30 feet away.

At the gathering, Jobs used the tiny white remote control like an oversize iPod Shuffle to play a Black Eyed Peas video and an "Incredibles" DVD and also to play home movies and photos.

The new lineup of features for iMac and iPod finally point the company more directly at the living-room space that Microsoft has attempted to carve out with its Media Center edition of Windows. Jobs introduced the iMac's new remote control and multimedia functions, called Front Row, saying they would enable people to experience music, video and photos "from the sofa."

However, the differences between the two platforms remain striking. Media Center PCs plug directly into a television or a television input device such as a cable TV box, allowing the devices to record television shows much like a TiVo digital video recorder, for example.

FAQ
Some details behind Apple's announcement
Following the announcement of new iMacs and a video-capable iPod, CNET News.com responds to some questions.

Many of today's Macs (and the new iPod) have a TV-out connection, but not a TV-in connection. Jobs highlighted only the ability to watch video on the iMac and iPod, without mentioning watching the programming on a television.

Indeed, for now, the video highlighted by Jobs is best suited for small screens, although Apple's software enhances the quality significantly for watching on a large screen. The 320-by-240 resolution can be expanded for a full-screen LCD (liquid-crystal display) TV or computer monitor, but will not have the quality of a DVD.

The cost of content
Then there's cost. With the new version of iTunes, unveiled five weeks after the debut of iTunes 5, consumers can buy non-burnable music videos for $1.99.

Tim Deal, an analyst with Technology Business Research, said he's unsure how consumers will take to the per-video cost.

"While I can appreciate the cool factor of portable video content, the price is a little difficult to digest," he said. "I think consumers are accustomed to seeing music videos for free from services such as Yahoo Launch and Comcast On Demand. Apple should give the videos away and charge for exclusive content only.

"This will, however," Deal added, "be a real boon for video podcasting and provides another distribution channel for independent content."

In addition to music videos, consumers will be able to purchase TV shows one day after their initial broadcast. Offerings will include ABC television's "Lost" and "Desperate Housewives" and the Disney Channel's "That's So Raven." It will take 10 to 20 minutes to download an episode, Jobs said. Each will cost $1.99 and will be ad-free.

Disney Chief Executive Officer Robert Iger took the stage with Jobs to introduce the sales of Disney- and ABC-owned TV shows through iTunes.

"We believe this is a breakthrough," Iger said. "This provides a great opportunity for consumers to stay connected to their favorite programs."

Six short films from Pixar Animation Studios also will be available for $1.99 each.

Apple last week sent invitations that included the words "One more thing..." Wednesday's announcements took place at the California Theatre, where Apple introduced the U2 iPod and the first color-screen iPod Photo last year.

The video iPod arrives just one month after Apple unveiled its pencil-thin iPod Nano. Company executives said Tuesday that demand for the Nano is strongly outstripping Apple's ability to supply the flash-memory-based music players.

Still a music machine
While highlighting the new iPod's video features, Jobs appeared careful to stress several times that it was still fundamentally a music-playing device, with video features added as a "bonus."

The careful language may have been aimed at avoiding a repeat of the introduction of the Photo edition of the iPod, which was not initially a top seller despite the addition of the color screen and photo features.

However, Jobs did show a new iPod ad, focused wholly on the new video features, with the tagline "Watch your music."

Sam Bhavnani, an analyst at Current Analysis, noted that the appeal of video is more limited than music. "You can't use it when running. You can't use it while working. You can't use it while driving," he said. However, downloading a TV show to use on an airplane flight, for example, will appeal to some consumers.

Apple "did a small step," Bhavnani said. "It doesn't take Einstein to know the next step is more shows. Maybe ultimately you get to where the next 'Toy Story' is going to be downloaded through iTunes."

Apple's video device isn't the first to hit the market. Studios currently market a handheld computer in Japan called the Type U that can be used to watch videos. Consumers can also watch movies (with a tiny Universal Media Disc) on the PlayStation Portable.

Intel and Microsoft designed a portable media player in 2002 that some manufacturers brought to market last year. (First it was known as Media2Go and later as the Portable Media Center.) In addition, Samsung and others have released phones that can receive TV signals, thereby allowing commuters to watch shows on their cell phones.

So far, though, portable video hasn't been a big seller. The screens on these devices are far smaller than those on TVs. Video also can sap battery life. Watching TV over cellular signals, some Korean consumers have found out, can rack up high bills. (New versions of the cell-phone televisions use a TV tuner card, rather than deliver TV over the cellular network.)

Sony executives, though, recently said sales of Universal Media Disc movies for the PSP are a little better than expected.

CNET News.com's Michael Kanellos contributed to this report. great opportunity for consumers to stay connected to their favorite programs."

Six short films from Pixar Animation Studios also will be available for $1.99 each.

Apple last week sent invitations that included the words "One more thing..." Wednesday's announcements took place at the California Theatre, where Apple introduced the U2 iPod and the first color-screen iPod Photo last year.

The video iPod arrives just one month after Apple unveiled its pencil-thin iPod Nano. Company executives said Tuesday that demand for the Nano is strongly outstripping Apple's ability to supply the flash-memory-based music players.

Still a music machine
While highlighting the new iPod's video features, Jobs appeared careful to stress several times that it was still fundamentally a music-playing device, with video features added as a "bonus."

The careful language may have been aimed at avoiding a repeat of the introduction of the Photo edition of the iPod, which was not initially a top seller despite the addition of the color screen and photo features.

However, Jobs did show a new iPod ad, focused wholly on the new video features, with the tagline "Watch your music."

Sam Bhavnani, an analyst at Current Analysis, noted that the appeal of video is more limited than music. "You can't use it when running. You can't use it while working. You can't use it while driving," he said. However, downloading a TV show to use on an airplane flight, for example, will appeal to some consumers.

Apple "did a small step," Bhavnani said. "It doesn't take Einstein to know the next step is more shows. Maybe ultimately you get to where the next 'Toy Story' is going to be downloaded through iTunes."

Apple's video device isn't the first to hit the market. Studios currently market a handheld computer in Japan called the Type U that can be used to watch videos. Consumers can also watch movies (with a tiny Universal Media Disc) on the PlayStation Portable.

Intel and Microsoft designed a portable media player in 2002 that some manufacturers brought to market last year. (First it was known as Media2Go and later as the Portable Media Center.) In addition, Samsung and others have released phones that can receive TV signals, thereby allowing commuters to watch shows on their cell phones.

So far, though, portable video hasn't been a big seller. The screens on these devices are far smaller than those on TVs. Video also can sap battery life. Watching TV over cellular signals, some Korean consumers have found out, can rack up high bills. (New versions of the cell-phone televisions use a TV tuner card, rather than deliver TV over the cellular network.)

Sony executives, though, recently said sales of Universal Media Disc movies for the PSP are a little better than expected.

CNET News.com's Michael Kanellos contributed to this report.

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STILL no iTunes for Linux  Real World | 10/12/05
Linux users don't need I-Tunes  Protector | 10/12/05
Sigh..some people. Well I guess with you and Shade  Laff | 10/12/05
Linux users?  rkadowns | 10/12/05
Sorry bro  Real World | 10/13/05
are you a media thief then or are you buying elsewhere?  mlindl | 10/12/05
Only people who *have* to...  mujadaddy | 10/12/05
Music and TV  Michael Kelly | 10/12/05
Wow, you're making a lot of assumptions in two little sentences  Real World | 10/12/05
MP3 compatible?  doh123 | 10/12/05
I can think of  Real World | 10/13/05
FM Transmitter  Loverock Davidson | 10/13/05
Right here.  Yen_z | 10/12/05
The next best thing  Michael Kelly | 10/12/05
Sounds Cool!  An_Axe_to_Grind | 10/12/05
Crap! Crap! Crapitty crap crap!  tic swayback | 10/12/05
Wait one month!  An_Axe_to_Grind | 10/12/05
Read my Lips!  ShadeTree | 10/12/05
I'll settle for a dual core G4  tic swayback | 10/12/05
Listen to this guy. He's right  BitTwiddler | 10/12/05
Is George H W Bush your model?  mlindl | 10/12/05
A dual G4 would be great! (nt)  tic swayback | 10/12/05
What makes you think that?  tic swayback | 10/12/05
Tic, think again  mlindl | 10/12/05
I need more power Scotty!  tic swayback | 10/12/05
Might be 10.4.3  Ken_z | 10/12/05
You are going to have to wait for the Intel based units...  BitTwiddler | 10/12/05
Can't wait that long  tic swayback | 10/12/05
i think you mean Pentium M  doh123 | 10/12/05
Now calm down Tic  mlindl | 10/12/05
I hope you're right  tic swayback | 10/12/05
I waited that long  Ken_z | 10/12/05
Potentially good news  tic swayback | 10/13/05
Bad time for the video iPod  Ken_z | 10/12/05
They must hate Steve!  An_Axe_to_Grind | 10/12/05
You are right  mlindl | 10/12/05
What in the world are you talking about?  ShadeTree | 10/12/05
PSP doesn't have....  nucrash | 10/12/05
encore! encore!  An_Axe_to_Grind | 10/12/05
You are right, it does  mlindl | 10/12/05
I think ...  nucrash | 10/12/05
And this isn't even the "video iPod"  Otto_Delete | 10/12/05
No real video iPod  openMind | 10/12/05
*yawn* So they finally caught up with the competition?  worknman | 10/12/05
Just out of curiosity what competition?  Laff | 10/12/05
Give these a try  mdemuth | 10/12/05
Meh...  nucrash | 10/12/05
OK...  Laff | 10/12/05
iTunes like application ....  worknman | 10/12/05
Ah but see there is an advantage for your average user  Laff | 10/12/05
Not $100 more ...  worknman | 10/12/05
Well in this case I was talking about the Zen Vision  Laff | 10/12/05
I think you misunderstand DRM  mlindl | 10/12/05
Not a pirate ..  worknman | 10/12/05
No DRMed CDs  voska | 10/13/05
The competition has downloadable tv shows the day after they aired?  tic swayback | 10/12/05
"The Competition"  bhartman36 | 10/12/05
Integrated solutions  tic swayback | 10/12/05
Re: Integrated Solutions  bhartman36 | 10/12/05
Which would a consumer rather travel in?  tic swayback | 10/12/05
Ah, touche' happy  bhartman36 | 10/12/05
More than that  tic swayback | 10/12/05
Clickwheels and Value  bhartman36 | 10/12/05
But what are you asking for?  tic swayback | 10/12/05
Alright. I admit it. I've never bought a blowtorch... wink  bhartman36 | 10/12/05
ummm... ?  doh123 | 10/12/05
Recording, etc.  bhartman36 | 10/12/05
Well first of all Macs (the computers) are selling very well!  Laff | 10/12/05
Macs and "standing alone"  bhartman36 | 10/12/05
Well I wasn't comparing computer sales in that fashion  Laff | 10/12/05
Computers and iPods  bhartman36 | 10/12/05
Yes I think you and I made different arguements about  Laff | 10/13/05
Price  bhartman36 | 10/13/05
I think this move might have more to do with the  Laff | 10/13/05
The Competition and the Distributors  bhartman36 | 10/13/05
When I was talking about distributors I was thinking  Laff | 10/13/05
The Two-Trick Pony  bhartman36 | 10/14/05
Which goes to my original point...  Laff | 10/14/05
Faster, but Bass-Ackwards  bhartman36 | 10/14/05
G4's barely match Pentium III's. That's what happened.  A_Pickle | 10/12/05
HEY...don't forget that iMac it's soooooo NICE!  Laff | 10/12/05
Not that impressed  tic swayback | 10/12/05
Does the Media Center require killing by Apple? or  Laff | 10/12/05
The real fulfillment of the "digital hub"  tic swayback | 10/12/05
I'm a bit confused as to what this item may actually be  Laff | 10/12/05
Yep  tic swayback | 10/12/05
I agree but I think right now they are having a difficult  Laff | 10/13/05
It replaces your TV  mlindl | 10/12/05
But you had to add EyeTV  tic swayback | 10/12/05
Why add the extra for everyone  Mr_Dave | 10/12/05
Why not offer them?  tic swayback | 10/13/05
RE: Not that impressed  JakAttak | 10/13/05
Great, now where's the new Apple Gaming Console  Boot_Agnostic | 10/12/05
RE: Apple Gaming Console  JakAttak | 10/13/05
Don't know for sure, came up with some Google hits  Boot_Agnostic | 10/16/05
Yeah, right  baggins_z | 10/12/05
bwahahahap0n3d (n/t)  mujadaddy | 10/12/05
Downloadable shows ????  voska | 10/12/05
Downloadable shoes????  tic swayback | 10/12/05
Your scenario  Michael Kelly | 10/12/05
VCR's versus DVR  tic swayback | 10/12/05
DVR and It's Analog Precursor  Ed_Meyers | 10/12/05
I agree  voska | 10/13/05
RE: Downloadable  JakAttak | 10/13/05
Not good market though  voska | 10/13/05
It can play your own video too  openMind | 10/12/05
Now people can keep their eyes.....  Feldwebel Wolfenstool | 10/12/05
Porno in church...well first you'll have to get me into  Laff | 10/12/05
downloaders shifted to video  cyber-shoplifter | 10/12/05
The 1st screen has moved to 2nd place..  cyber-shoplifter | 10/12/05
Not yet  tic swayback | 10/12/05
Designed to Fail  Ed_Meyers | 10/12/05
Ipod video sounds like a software upgrade  bjb_z | 10/12/05
Thats what I was hoping too  Loverock Davidson | 10/13/05
A simple question no one has answered.  Paco20 | 10/13/05
Microsoft doesn't need excuses  Real World | 10/13/05
Answer  Loverock Davidson | 10/13/05
Huh???  joethemacfan | 10/13/05
Take a good look at the CEO's!  Userama | 10/13/05
Stock prices are only good measurements for investors...  joethemacfan | 10/13/05
Rip DVD's to your iPod  tic swayback | 10/13/05
So who's got the Archos to Apple's comparison  Boot_Agnostic | 10/13/05
RE: Comparison  JakAttak | 10/13/05
Thanks for the feedback  Boot_Agnostic | 10/14/05
How about never? Is never good for you?  tic swayback | 10/14/05
Do I still have to pay DOUBLE for....  Feldwebel Wolfenstool | 10/14/05
MOBILE PHONES, LAPTOPS, DIGITAL CAMERA  MARSHAL1 | 01/21/09
MOBILE PHONES, LAPTOPS, DIGITAL CAMERA  MARSHAL1 | 01/21/09

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