Apple steps into a Lion's Den

Tags: Apple Computer Inc., Technology, iTV, Wal-Mart Stores Inc., Best Buy Co. Inc., AAPL, WMT, BBY
14 Sep 1:01am
Is that it? Is that the latest thing that Apple was suppose to come up with to surprise everyone?  If it is, hell yah, it sure surprised me, because I think it sucks!  Apple announced its newest product, the iTV (no not another smaller version of the iPod).  This box costing an expensive $300 allows for transfer downloaded PC movies, videos, music, you name it, onto the users' TV.  Apple is hoping that this will create something on the internet to allow users to buy movies simlar to iTunes. Sounds cool and all?  But ask yourself, how many TVs in living rooms across the US (not to mention the rest of the world) are already equipped for compatibility with the iTV.  Meaning, that people will most likely have to buy additional pieces for connection, or a brand new TV altogether (something not very feasible).  Lawsuits, well, perhaps iTV will encourage more illegal downloading from sources like BitTorret, and others out there.  This practically welcomes entertainment giants to come in and get some free money through litigations.  And even if later on media files must conform with the iTV, what really makes you think people will switch away from "FREE" downloads to paying Apple instead.

The bigger threat is also what mega-stores like Wal-Mart or Best Buy would do in retaliation.  These retailers accounts for at least 40% of sales on new movie releases.  You think they'd actually sit around and sell iTVs while prices for iTunes movies, cheaper than DVDs, will take away their business?  Downloading movies will be the thing of the future, as did MP3 downloads take over walkman cassette players, CD players, and MD players.  However, Apple's brave move will have to be monitored really carefully, or the pack of lions will be having a good dinner soon.

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