Apple yesterday announced a groundbreaking content deal with Disney which allows, for the first time ever, popular TV shows to be downloaded via iTunes. Initially the deal encompasses 5 shows, including the hit series Desperate Housewives and Lost, both of which are broadcast on Disney's ABC network. Episodes from previous and current series are available and the most recent episode can be downloaded the day after first broadcast and watched either on a computer or the newly announced iPod which supports video. Although the resolution at 320 * 240 is poor for watching on a PC, this will no doubt be improved over time. Each episode costs $1.99 and is free of advertisements. It appears these shows are currently only available for iTunes users in the US.
Apple also announced the launch of an iTunes music video store, initially with 2,000 videos as well as the addition of 6 short Pixar movies to its iTunes catalogue.
This move would appear to be the first step for Apple in developing a fully fledged video store encompassing TV programmes, movies and music. But the challenges are somewhat different from the music industry, with both continued concerns regarding copy protection and the growing popularity of digital video recorders such as TiVo and Sky+. Additionally, cable companies in the US such as Comcast are also offering customers free shows via their on-demand service.
However, I believe this to be the beginning of an exciting period of change in the distribution of broadcast media and movies, providing consumers with greater freedom to choose where, when, how and what they watch. This is the future. Let's hope that like Disney, other content providers soon creatively embrace this technological reality and view this distribution channel as an opportunity rather than a threat.
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