Strategy counts, and with both Apple and Google vying for the VOD (video on demand) market, it may prove to be an interesting battle, according to a leading analyst on media, broadcast and telecoms.
As expected, Apple’s launch of the Apple TV 2.0 shows a strong focus for VOD. Coming it at US $99, it is also a quarter of the size of the first generation device launched in 2007. But, says Adrian Drury, from Ovum, the service strategy behind this stripped down unit contrasts sharply with the broadcast industry approach taken by Google.
“Apple’s response to Google TV? Turn the TV into an iDevice accessory,” he said.
According to Drury, “Apple is just looking for a share of VOD revenues. Google wants a share of this market, but also the much larger broadcast advertsing market.”
“However the strategic subtext to Apple’s announcement last night was AirPlay, Apple’s new name for its proprietary WLAN media streaming application. This is a major feature of the coming operating system updates for its iDevices and will allow users to stream music, photos and video content from an iPad, iPhone or iPod Touch direct to the TV set.”
Drury says this turns the TV screen into a companion accessory to socially share content from devices that are otherwise highly personal. Rather than place another computer underneath the TV, Apple is seeking to leverage the computing power, network effect, and potentially, the App Store distribution channel of its 120 million iDevices.
He continued: “If it is successful it can move on the mainstream broadcast market that Google is targeting. It faces very serious, entrenched competition from existing pay-TV, consumer electronics and evolving free to air broadcast players, but it would be unwise for any of Apple’s competitors to dismiss the iDevice network effect.”
