Apple's Ambitious Plan to Revolutionize Hollywood Distribution

As Apple prepares to unveil its latest strategy, Apple's Chief Executive Steve Jobs has been quietly working on a plan to transform the distribution of Hollywood movies, much like he did with the music industry through iTunes. The tech giant is rumored to have a distribution deal with Disney and sleeker video iPods, but industry insiders hint at a more significant idea that could change the way we consume movies. Jobs' challenge is to navigate the personal computer industry's long-standing struggle to integrate computers into home entertainment.

Key Takeaways:

• Apple has been working on a digital convergence strategy to bring the computer into the home entertainment space, but so far, it has taken only baby steps into the video era.
• The company has invested in software programs like Front Row for managing video collections, music playlists, and slide shows, but it remains unclear if these efforts will be expanded.
• Apple's least expensive computer, the Mac Mini, is being speculated as a potential living-room-ready device that could play DVDs, download digital movies, and include a TV tuner.
• A more intriguing possibility is that Apple may use wireless technologies like Wi-Fi and Ultra-Wideband to stream digital content from a Macintosh to the TV, which would appeal to Apple's minimalist aesthetic.
• The obstacle to this wireless home video service is delivering high-definition video reliably through Internet-based technology, known as the "last hundred feet" problem.
• Former Apple engineer Steve Perlman explained that once this problem is solved, it will completely transform the entertainment landscape.

Statistics:

• In 1993, Microsoft attempted to rally the cable industry under the banner of Cablesoft, an effort that ultimately failed.
• Microsoft and Intel have invested millions in Media Center PCs, which promise a single home entertainment box, but the growth has been slow.
• In January, Intel introduced the Viiv microprocessor system for PC-based digital entertainment but found few backers.
• Apple has sold millions of iPods, with many playing television videos on tiny screens.

Sources:

• John Markoff, "Has Apple Found a Way to Connect the PC to the TV?", The New York Times, October 1, 2005.
• Steve Perlman, quotes from an interview with John Markoff.
• Microsoft, Intel, and Apple press releases.
• Industry reports and trade publications.