As Steve Sande has reported, Apple has discontinued the 40 GB Apple TV unit, and dropped the 160 GB unit U.S. $100.00. The large capacity set top box now sells for $229.00, the price that the now-eliminated 40 GB unit used to sell for.

Apple has continuously referred to the Apple TV unit as a 'hobby', perhaps a way to explain less than stellar sales figures. It's way overdue for some kind of update and new features; perhaps an 'all you can eat' rental program similar to the Netflix model.

At the same time, the Apple TV service has had plenty of issues: everything from failures to authenticate users, to (for the last few days) an inability to browse the HD rentals beyond titles starting with the letter 'B.'

Piper Jaffray analyst Gene Munster had recently predicted that Apple would drop the 40 GB unit and lower the price of the remaining 160 GB unit, a prediction that turned out to be spot on. Munster has also predicted Apple would add DVR capabilities to the device.

Now, if only Apple would let that mysterious USB port on the back of the Apple TV allow more storage, and fix the service glitches, a lot of people would celebrate.

Some price adjustments for rentals would also be welcome. It is cheaper to rent Blu-ray titles at Blockbuster overnight then get the same title from Apple. Yes, you have to go get it, but the picture quality is better on the Blu-ray disk.

It's hard to figure out exactly where Apple should go with this device. I don't find the YouTube content compelling on a hi-def screen. Rentals are fine, but severely limited by the MPAA rules that only let me keep the rental for 24 hours. We're starting to see YouTube and Netflix being built into both TV sets and some new DVD/Blu-ray players, which will further diminish the Apple TV value. Hopefully Apple is up to something, or the 'hobby' will remain a half-baked idea that never took off.

Thanks to Jeremy for the the tip.

Has your favorite movie gone missing from iTunes or Netflix lately? The reason could be television, says CNET -- apparently a slew of movies on iTunes and Netflix's streaming service have recently fallen prey to television exclusive agreements. With the onset of Apple TV and apps like Boxee making it possible to stream Netflix, TV networks with exclusive showing agreements have made sure that while they've got a lock on a movie, we can't watch it anywhere else.

Of course, as CNET notes, it's about the money (isn't it always?). If studios can make more money from the TV networks than they can from online rentals, then obviously they're going to go with television. The only problem with that, however, is that with an exclusive agreement, they'll never know, will they?

And of course the other issue here is the actual definition of places like iTunes and Netflix -- obviously, retail stores aren't barred from carrying these movies, so does that mean that Netflix and iTunes are actually content channels rather than retailers? Tough issue. You have to think that it'll eventually be settled in favor of digital distribution (what consumer wouldn't want to watch a movie on their own time rather than sticking to a TV network's schedule), but until studios are convinced otherwise, exclusivity agreements will likely be the rule.

[via Apple Insider]

Update: As the commenters have noted -- this service is currently only available for US customers. I truly apologize for my US-centric slant.

Last month, Netflix finally started to roll out its Watch Instantly service to Mac users. You needed to opt-in to use the feature, but it was available for those who wanted to access it. Today, Watch Instantly is available for Mac users without having to opt-in -- as long as you meet the minimum system requirements (Intel Mac running OS X 10.4.8 or higher, and at least one GB of RAM).

Watch Instantly is a great way to catch up on a movie, TV show or documentary without having to wait for the movie to come in the mail. You don't get the extra features or super surround sound, but it's fast, the quality is good and it is free to use. If you have a Netflix Unlimited plan, you can watch as many movies a month as you want. If you have a limited plan, the number of films you can stream is also limited.

You can access Watch Instantly from the tab on the main Netflix page and browse through the selection of movies and TV shows. You still need to install the Microsoft Silverlight plugin, if you don't already have it installed. Watch Instantly works in Firefox 2 or higher and Safari 3 and up.

Thanks to everyone who sent this in!

iPhone media guides may be a dime a dozen (or, in the specific case of What's On TV, $0.99), but the free i.TV listings and lookup tool is starting to follow through on some of the promises for future feature development we heard when it was launched.

The new version, on the App Store now, includes third-party partnership integration with Netflix. You can manage your DVD rental queue and your instant-viewing list (if you have a supported target -- Mac streaming is "still in the works" but as we know you can sneak your way in), search the Netflix catalog, or check for DVD availability from any TV schedule listing or movie details screen.

Other new features include the addition of Wikipedia links from most movie, show and actor listings; new TV channel listings, along with an option to only show new/unaired episodes; and location-based searching for movie theaters.

i.TV says that the Netflix integration is the first of several third-party ties for the app, with more announcements coming through the end of 2008 and into 2009. Can't wait!

We noted a little while back that Netflix is finally bringing its Watch Instantly streaming TV and Movie service to the Mac. They began by rolling out the service slowly and it wasn't initially available to all Netflix subscribers. Now, however, it appears that there's a way for all Mac-using Netflix subscribers to get in on the action.

The Netflix blog has instructions that will allow you to activate Watch Instantly on your Mac via Microsoft's Silverlight browser plugin. It is worth noting that if you switch over to the Silverlight player you must use that on any Windows machines you might have as well, which means that you'll have access to less streaming content (at least at the moment) than the old Windows Media option. Also, as VentureBeat notes, you're limited to a total of six devices for streaming content, which includes both computers and stand-alone set top boxes. Nonetheless, if all you want is to get Netflix's Watch Instantly on your Mac, there's pretty much no reason to wait.

[via Engadget]

Netflix has been talking about bringing its "Watch Instantly" movie streaming service to the Mac for a long time, and now Engadget is reporting that they're finally beginning to roll it out. The "Watch Instantly" service allows unlimited Netflix subscribers to stream about 12,000 TV shows and movies to their computers (or set-top devices), but has been limited to Windows PCs since the service first appeared.

Ironically, this is being made possible thanks to Microsoft's Flash-wannabe Silverlight browser plugin. As we noted way back in 2007, the holdup was the need for Microsoft DRM on the streaming videos and the new Silverlight-based player incorporates Microsoft's Play Ready DRM.

Unfortunately, the initial roll-out is limited, but Netflix expects to bring "the new platform to all Netflix subscribers by the end of the year." Sadly for PPC owners, it will be limited to Intel Macs. Nonetheless, it's great to see Netflix finally coming through on the promise of Watch Instantly for Mac users.

When I was a lad in Pennsylvania, renting a movie meant driving to Scranton Video (this is pre-Blockbuster, boys and girls) and crossing your fingers in hopes that something you actually want to watch will be among the four dozen VHS tapes they had in stock. Of course, the previous customer didn't rewind the tape before returning it.

A few years later, Blockbuster provided a much larger collection of unwound movies I didn't want to see. Eventually, Netflix took the inconvenient travel out of the equation (except for us small-town folk with PO Boxes) by sending movies through the mail. And there was much rejoicing.

Today, services like On Demand and Apple TV have eliminated the taxing walk to your mailbox by delivering movies directly to your television. Customers can rent, download and watch a hit movie faster than you can say "sedentary lifestyle." And Netflix wants a piece of the (in)action.

Neflix and Roku have produced the Netflix Player, a $99US set top box that allows Netflix customers to stream any of the 10,000 available movies and TV shows. It connects via HDMI, composite, or component, and allows users to browse the library and make selections with the remote.

At one hundred bucks, it's less expensive than an Apple TV, but it also does a lot less -- no iTunes or iPhoto synchronization, current trailers, etc. It's not a real threat to the Apple TV, but evidence that the set top box is here to say.

[Via AppleInsider]

If you are looking for an application that allows you to manage your Netflix queue with Mac style, then iNeedFlix might be for you. iNeedFlix allows you to (as long as you are signed into Netflix through Safari) manage your queue. You can both move and delete items in the list. iNeedFlix interfaces directly with the Netflix server, so changes will be made almost instantly. This is a very simple application for a very simple problem, however, it would be better if you could be signed into Netflix through any browser, not just Safari -- or have this step eliminated completely.

If you are looking for a Netflix application for the Mac that is a little more full featured, then look no further than Netflix Freak.

You can download iNeedFlix for free from the developer's website or from VersionTracker.

Blockbuster and Netflix's stocks both took big hits based on what we just heard Steve say at Macworld. Blockbuster has dropped a handy 15%, and Netflix "tumbled 6 percent" already this afternoon (although it's jumped back a bit since then), according to CNN Money. Apparently investors are convinced that movie renters would rather fire up iTunes than run out to the video store or wait for a movie to come in on their Netflix queue.

Apple, however, isn't doing that well either after today's announcement. On the day, they've dropped almost $11 as of this writing. But while this Keynote may not quite have met expectations (lots of people were expecting Cinema upgrades, or something a little less traditional than the MacBook Air), this very likely isn't an actual downturn in the ol' Apple hype -- anyone can see that iTunes movie rentals will very likely make them a lot of money. Rather, it's probably* the result of Keynote investors selling off the stock they picked up before the event. In short, it'll take a lot more than an afternoon to see what effect today's announcements really have on stock prices.

*All of this commentary and analysis is given by someone who has little to no experience in stock trading, and should not be taken seriously by anyone.

Forbes' Brian Caulfield suggests that Blockbuster and Netflix should be very concerned about Apple's rumored move into digital movie rentals. He suggests that history has proven the iPod to be a very disruptive device. Just look at CD sales, says Mr. Cauflied, their decline over the last several years certainly proves that people want their media in a digital form and they are willing to turn to Apple for it.

While I agree that Blockbuster and Netflix should be worried, I don't think Apple will be driving physical DVD rental stores out of business anytime soon. The one advantage that Blockbuster has is bandwidth. Movies, if you want them to look good on large screens, take up a lot of space. That means whether you're streaming them or downloading them you need a pretty fat pipe to have an enjoyable experiences. Compare this with the rather small files that most songs, in MP3 format, create and you can see how the music business was greatly impacted by digital distribution whether it be legally via iTunes, or when the floodgates really opened during the freewheeling days of Napster (I was an undergrad during that time, and I can tell you that I saw many a computer running Napster. I, of course, never downloaded anything because I didn't actually own a computer in college). Theoretically it could take less time to drive to a Blockbuster and rent a DVD than it would to download the movie. This will become less of a problem, and digital rentals more popular, when broadband speeds make downloading multi-gigabyte files take a matter of moments (in some areas this is already true).

Clearly digital movie distribution, both rental and for purchasing, is the future, but sadly I think this future is still a few years off from supplanting those shiny disks we all know and love.

There are a few companies who, through their products and services, have earned a special place in my heart. Apple is one (obviously), as well as Amazon, New Balance, Nintendo, and Netflix. Netflix, in case you haven't heard of them, makes money via a subscription model. You pay a monthly fee and that gives you access to their monstrous DVD catalog. Pick a DVD and they'll mail it out to you in a nifty envelope that also serves as a the return envelope.

Alright, so now we all know what Netflix is, why the heck am I blogging about it on TUAW? You might recall that Netflix has recently started streaming movies for members via their website. This feature is called 'Watch Now,' and appears on any movie that has been digitized for streaming. Sadly, this very cool feature is only available for PC users. The dev responsible for this feature posted about why Mac users are left out of all the fun.

It basically comes down to the fact that there is no movie studio approved way to wrap these streams in DRM, so the movie studios won't let it happen on the Mac. FairPlay is mentioned, but as we know Apple isn't licensing that. Luckily, the solution might be coming from an unlikely source: Microsoft. Silverlight, Mircosoft's answer to Flash, uses Microsoft's DRM which the studios do approve of. Silverlight is still in beta (for both Macs and PCs) but it does look very promising (and on my Intel Mac it was pretty peppy).

Thanks, Mike.

Although not made by Netflix, the availablity of the cool Netflix Freak application always made Netflix seem the more Mac-like of the online movie rental services to me. In the last few days, Netflix has started rolling out their exciting "Watch Now" service to some subscribers (with service to all promised by June), which allows you to stream certain movies directly in your browser. Well, probably not you, because The Mac Observer is reporting that Netflix is not and will not support Mac users in "the short to medium term." Apparently, the service uses Microsoft DRM and thus is incompatible with the Mac (including Flip4Mac). Well I guess we can always drop back to Parallels, but I think this deserves a big Boo Hiss sent Netflix's way.

[Via PowerPage]

I had a trial membership to Netflix, but let it expire as I just don't watch movies at home very often. However, I know that legions of people think it's the greatest thing since copy and paste. For those people, there's Netflix Freak.

With Netflix Freak you can manage all of the movies in your rental queue within a nice, Mac-like interface, and make use of features not available on the Netflix website. Changes to version 2.3 include:

• Support for Netflix Profiles
• Simplified experience of adding new movies to the queue
• Quickly search IMDb, Google Movies, Rotten Tomatoes, or Amazon
• Support for Keychain for securely retrieving saved Netflix passwords

Plus, it's universal. Netflix Freak requires Mac OS 10.2.6 or later, and a single license will cost you $15US.
[Via Daring Fireball]

the little appfactory has just updated Netflix Freak to 2.1. New in this version is:

• Support for profile
• Simplified adding new movies to queue
• Quickly search IMDb, Google Movies, Rotten Tomatoes, or Amazon
• Support for Keychain

All of this for $15 (this update is free for registered users), and if you remember they are donating all profits to charity.