Filed under: Analysis / Opinion, Rumors, iTunes
Speculation: Apple's Foray Into the Media Center Marketplace
It's time for good old-fashioned speculation and rumor-mongering. Over a year and a half ago, I wrote on my personal blog about the AirHub, a fictional Apple device that was a sort of upgraded Airport Base Station...a wireless router with a built-in hard drive that could act as a home media device. This was seven months before Apple released the Mac mini, which some people have started to use an a home media server. You might make the case that the Mac mini is the AirHub, but with extended functionality. But what if Apple takes the idea even a step further than releasing an iMac with media center functionality software?I believe Apple is going to get into the home media center market, as I've stated here in the past. And this is how I think they are going to do it. It's all centered on the long-known merchandising tactic known as upselling. Very simply, upselling is the offering of companion products to the product being sold. If you're in an electronics store buying a camera, the salesperson will also offer to sell you a carry bag, a set of storage tapes, different lenses, etc. Or the computer salesperson will offer to sell you speakers or a printer for your new computer. It's not necessarily a sneaky tactic (despite what some people argue), but it has been known to dramatically increase sales profits and margins.
If Apple releases a Media Center device of some sort in January as I believe they will, its centerpiece will be a Mac mini with an iPod dock. And I believe all the components of Apple's media center will be sold as modular units. Buying the Mac mini? Why not buy an iPod to connect to the mini to transfer files? Or you could also buy this add-on Airport device that'll let you stream music and videos to your new mini...look it plugs right in this slot here, see? You don't want all the components right now? No problem, you can buy them later at one of our Apple Stores. Oh, and it all works with Vingle? What's Vingle, you ask? Why, it's Apple's new video-on-demand network that allows you to buy and view movies, tv shows, and music on this new home entertainment media center.
I'm convinced the Mac mini is being positioned as an Apple Media Center device. It's already got the desirable small footprint and a DVI port for feeding video to your television. It also has a DVD drive for playing DVD's. And don't forget that Apple's already released software for managing media content via a Macintosh called Front Row. All Apple has to do is offer a revised Mac mini with an S-Video port, a digital audio out port, bundle it with Front Row, rebrand it, and they'll sell a million of them.
Oh, and if Apple ships this revised Mac mini, it'll be in black.
Readers, what do you think? Am I completely off the mark, or do you think Apple is working on a media center as their "one-more-thing" to make waves in January?
*note: the Mac pictured above is a Macintosh TV, a short-lived LC-based Mac from 1994 with a video tuner card. Only 10,000 of these were manufactured before being discontinued.
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Reader Comments (Page 1 of 1)
Chris Deke said 6:34AM on 11-01-2005
They will do it for sure. But not yet. The x86 push will give the mini dual-core pentium-m's, which will be far more up to the task than the current G4 iterations.
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CUllerClassik said 4:57AM on 11-01-2005
Ah, The days of the MacTV... We had 10 of them at my work... guess we had our fair share of them. Disgustingly bad machines, but TV tuners in a PC, far to ahead of it's time. I bet this is another case of Newton fright though. Stevie won't make a Media centric PC again, just as he won't make a personal organizer and assistant... wait... iPod organizes my contacts and events... nevermind. Steve doesn't learn. Bring on the MediaMac
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Small Paul said 2:06PM on 11-01-2005
Er... iMac? I think *you* want the Mac mini to be a media centre, because it's cheap. I think Apple wants to sell a lot of high-margin iMacs.
And Vingle? I think the iTMS is Apple's video-on-demand service, and will only expand as fast as the content owners are willing to license.
(Please note: I'm very happy to be proved wrong in January.)
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aj said 9:47AM on 11-01-2005
I think it would be a great idea - in white, silver and black - and of course, eventually it'll have some sort of combo Blu-Ray / HD-DVD drive.
Here's where the wrench comes in - digital TV and HDTV. It seems obvious that you'd want to use this as a kind of PVR, but unless you want to funge the signals down to analog and record that, there's no way to do it digitally.
That's also part of the Intel move, because it's a "trusted" chipset platform for delivering encrypted digital media.
In any case, right now, except for digital over-the-air broadcasting of HDTV, there is no real standard, so you have to have proprietary end-to-end solutions (digital cable, DSS satellite, and coming soon, Microsoft IPTV). Either Apple does an end-run around all these by offering tons of feeds of popular shows and networks, or builds its own end-to-end network, or takes great pains to be compatible with every digital tv standard, so you can just plug in a coax or Ethernet cable and watch.
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Dan said 11:51AM on 11-01-2005
I can see Apple doing something similar to what you suggest by selling 'add-ons.' They wouldnt need to modify/increase the manufacturing costs by much. Theyd simply need to include a replicator port like some laptops have when used in conjunction with a docking station. Except instead of simply replicating USB and video out etc., it would also provide composite and s-video (throw in coax for good measure), RCA and optical audio out, and whatever else a/v buffs would need. Then Apple can sell an av extension kit (or iAV, or whatever) that would have a similar form factor to the mini like some companies are already doing with hubs and HDs. The iAV could have its own processor to do most of the heavy duty converting. Apple could offer several varieties (and it would be really slick if they could daisy chain them) some with built in HDs, some strictly offering audio ports.
A side note: as a former Apple retail employee I bristled at the 'upsell' reference, upselling is when a costumer comes in looking for a cheap *advertised* item and an unscrupulous sales rep tells them that they really want the more expensive model from brand XYZ instead. Its illegal. In a similar vein, if a customer came in looking for a Mac mini we sold them a Mac mini after listening to how they planned on using it. We didnt try to sell them up to a PowerMac. If a customer came in eyeing the Powerbooks, but all they wanted to do was surf the net we would strongly suggest the iBooks instead. We were told by management (and it was in out training as well) to sell only the computer that the customer needed, we didnt want them feeling unhappy with the value of their purchase. And you instantly had a better rapport with a customer when you suggested something less expensive. But we were also strongly encouraged to add on to sales like you had mentioned before, though the emphasis was on AppleCare and .Mac memberships.
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Jeff said 6:26PM on 11-02-2005
OK, I think this discussing is GREAT but I think many are making it overly complicated. Think Apple. Think SIMPLE!
Instead of making it a full-fledged Mac Mini or alternate Mac Mini, take the idea and model of the Mac Mini, strip out any operating system that resembles your working computer and design a proprietary system for this device. This would no doubt require hardware changes and designated software development.
This device would have video in from either an antenna, cable, or digital cable device and have audio out (probably optical or coaxial in addition to stereo) and DVI out. There would be different DVI cables depending on your TV if it went directly into an HD TV, an S-Video and/or composite, and maybe some third-party RF for Grandma's ancient TV from Sears.
In addition to your basic video ins and outs, it would also have ethernet in and act as a router to all your computers in your house or work.
This Mac would act as a DVD player, a housing for ALL your music in your network (which you would access wirelessly iTunes sharing!), a housing for all your digital movies and shared wirelessly much like your music, host all your photos if you'd like, work as a DVR and record your shows (and of course share them like and probably through iTunes), and access to download media from the iTMS. All with the FrontRow look I presume.
Basically it would become a MEDIA hub sharing all your media wirelessly (or wired optional addition of course). AND it can burn music CDs, data discs with videos and/or photos maybe, and video DVDs (from your slideshows, downloaded videos or DVRs of course!).
I think they could design proprietary software (especially if they didn't have to make it back compatible as an operating system should be) to run 1080p h.264 Quicktime movies on G4 architecture along with a plethora of other file formats.
It should NOT be an additional general/generic computer that hooks up to your TV and surround sound. It should NOT have an operating system like OSX, just it's proprietary software that works with iLife products on your Macs. It should have a bluetooth (or bluetooth similar, maybe working through the wireless network) remote that is small, thin, and mirrors the iPod click wheel and MAYBE, MAYBE (though I think it would defeat the purpose) an optional wireless keyboard. But even if you are recording from TV, having internet access, it can locate the name of the shows and add metadata like show description, etc.
It SHOULD NOT access the internet as we know it. It should only be able to access sites built for the device. Apple would flagship it no doubt with their movie trailer and quicktime sites designed specifically (both presentational-wise and functionality-wise) for the media hub using the iPod click-wheel style remote. Also a version of the iTMS built for the media hub using the click-wheel remote.
AND, if you had to access certain settings within your media hub (like credit card number for the iTMS, or which media hub designed widgets you'd like to access on your TV), you would do so through the network via your Mac, not the media center itself.
So it shouldn't be a Media Center COMPUTER, it should be a Media Center hub player and storer (and router) for centrally viewing/accessing your media in your living room and sharing throughout your home or work network.
It should be a SIMPLE addition. That's how the iPod started and it's functionality grew from the basic premise of music in your pocket.
Apple is great like someone said earlier about doing a few things GREAT instead of a LOT of things mediocre.
My 2 cents. Sorry for being long.
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Brandon Medenwald said 4:53PM on 10-31-2005
I wrote a similar article a week ago. I also believe a Mac mini, slightly revised, would make the ultimate living room computer. I know I would snap one up quickly.
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Chic Barna said 5:31PM on 10-31-2005
So how does High Definition (HDTV) fit into this plan?
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Todd Plants said 6:13PM on 10-31-2005
Chic nails it.
THe current mac mini won't work because it won't do h.264 effectively (at least not TV-sized screens). You need at least a G5 for that.
Or maybe you just need a low power, but hot dog Intel chip. Maybe I don't know what I'm talking about.
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Mikataur said 6:24PM on 10-31-2005
Great ideas!
If Apple does rev the mini to create a Mac "Media Center" Mini, it will need either an infra-red port to receive signals from the Apple Remote, or a newly designed remote that works over Bluetooth.
After using my Sony Ericsson to control the hacked Front Row on my PowerBook via Bluetooth (using Salling Clicker), I think the latter would be quite acceptable, but I'm sure Apple had their reasons for going infrared.
As for black, I'd love to see the Mini in anodized aluminum...
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Mark said 6:25PM on 10-31-2005
HDTV is a FAD!
No one really cares about HDTV...
...RADIO is the next big thing!
I can pitcure it now: Apple's new "iRadio" - Records directly to your brand new "i8Track"
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dalton said 6:54PM on 10-31-2005
Chic: I think an upgraded media center oriented Mac Mini would definitely be able to push HD content, and probably go nicely with an upgraded iTunes video store that allowed video downloads. I know I would be first in line for one, if it ever did come out.
What I'm really interested in, though, is a DVR component. I love the media center idea, and I think Front Row and the Mini are just the way to do it, but until "TV Shows" are on the list as well, it's simply...well, a Mac Mini with Front Row on it, which is OK but not great. Until I can get rid of my Tivo with Home Media option as well as my DVD player, it's not quite a complete system.
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adreanaline said 4:48AM on 11-01-2005
I really dont like the name Vingle -- it feels smarmy...
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Liz said 7:35PM on 10-31-2005
I've been thinking the same thing...I can't wait!
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Bert said 7:59PM on 10-31-2005
I think too, that Apple is trying to get into the Multimedia business for a while. But their achiles heel has always been "Marketing". As a matter of fact, when I bought my G3 266, they where the first I heard of who had a TV like app included in their computer. I could connect the VHS to the G3 video connection and yes, watch TV from my Mac no extras needed.
Like with Newton, it is mazing incredible that they keep the future in the past... by the way I am not sold in the Mac mini. to make it a true hardware economic self-contain solution they should of added wireless keyboard and mouse and video/audio in/out connections.
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Robert said 9:52AM on 11-01-2005
What Apple needs to do is create a universal remote using a built in screen. With infrared codes known a user could select the devices they own and Apple's software would allow the single simple remote using it's screen to control their home theater components. The media center is possible; but a solution now would be compromised. In '07 it's more likely the pieces would be in place for a total Apple solution. Movies would not be a likely net delivered product for Apple to sell due to the lengthy time to download. Jobs has also said they didn't think a media center computer is appropriate.
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lloyd Wagoner said 10:32PM on 10-31-2005
Tv shows would be on the list, eyetv would record them into our video collection.
So a Mac mini 1.5 with 64 meg Video and 512 Ram (rumored specs) the question is would it play a Quicktime HD trailer? If it could then Divix HD, Nero HD, .TS , .TP and others should work as well. Then that would put more content and options onto the Mac media center. Along with video pod-casts, music, and photos thats some viewing.
But now you have to look at the price. $499.00 base no wireless (no good for HD streaming anyway). Thats not going to have bluetooth mouse. I would want that so up the model. $599.00 is the best choice, but now need a surround sound amp that will decode ACC 5.1. I don't think they exist. And if they did the Price would be high. If it was decoded by the Mac mini then it would have to have 6-ch audio out to go to the receiver. Right now the mini does not have this option.
You got to admit thats a high price to ask the masses to pay for a network connected DVD player. Most of the new ones go for 349.00 and under. I know it will do more, save space, power.... And I know I would be there in line with you all. But I just think its not the answer, its the gateway.
If someone goes to buy a Ipod they don't worry about itunes it cross platform.
You see why would you ask someone to buy a computer to drive your media center at such a high price. Why not ask them to buy a device that is dumb but uses itunes to get its content. Then show them how much simpler it is to manage and use if you did have a mac mini.
I have thought about the three devices. A ipod video with front row imbedded software, but this has no dvd drive. A airport express, same thing. So i am right back to a new device, a set-top or network connected DVD player with the front row application loaded on it.
The device would cost about 300.00 and come with the nice new remote. All content would be pulled from your Itunes library. But what about pictures and home movies? Maybe this is where you show the macs advantages. Or maybe you make a UPnP server in I tunes and tell it on a PC where your photos and home movies are.
I really cant wait anyway, mac mini or set top box I know I want one.
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