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Apple faces uphill battle with mobile video

by Robert Jaques

18 Oct 2005

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Apple iPod video
Apple faces a much tougher fight with video than it did with music

Despite the hype surrounding Apple's high profile video iPod launch last week, industry experts remain pessimistic about the device's potential to ignite the nascent market for mobile video and TV.

According to analyst firm Gartner it will be much tougher for Apple to muscle into the mobile video market than it was for the firm to carve out a slice of the online music market.

"Gartner remains cautious about the immediate impact of portable video and about any high expectations that may result from Apple's rapid ascent to the top of the online music sector," warned a Gartner analysis written by Mike McGuire, Van L. Baker and Allen Weiner.

The analyst firm went on to warn that TV content and the TV business are very different from music and the music industry, where Apple has enjoyed exceptionally strong growth with its iTunes business.

Nonetheless, Gartner accepts that Apple has set up an "impressive platform that shows the potential to radically alter notions of TV content and how it is delivered".

Gartner went on to praise Apple's ability to secure current episodes of two of the most popular US television shows, Lost and Desperate Housewives, the day after broadcast.

"Demand for TV shows is clearly highest the day after an episode airs, among viewers who have missed the episode, and Apple fulfils their needs," said the research paper.

"What's missing is an RSS subscription for the shows. Questions remain as to whether service providers or content entities will provide the RSS capabilities."

The report went on to advise Apple and other hardware vendors to evaluate possible partnerships with TV-over-the-web companies, such as Brightcove and Blinkx, as content options to boost the appeal of portable media players.

Gartner also suggested that it is time for broadcast and cable TV executives to develop closer relationships with Apple.

"Disney/ABC's willingness to experiment with a new distribution system and business model is an indicator of a much-needed new approach to a media industry facing change," the analyst stated.

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