Every person has their own personal obsession and it’s fast turning out that mine is an Apple DVR. I love digital video recorders, particularly when attached to a computer which could process that video all day long. I think it would complete Apple’s Front Row; Dan thinks it’ll cannibalize iTMS sales.
Ken Fisher is somewhere in the middle in an article for Ars Technica. He acknowledges Dan’s concern, giving it a lot of weight. However, he also sees things my way in that an Apple DVR could theoretically augment the iTMS in some ways. Ultimately, pricing the hardware for the DVR capability as well as an Airport Video could offset the potential loss of iTMS revenue.
I think the upshot is that until everything is available on the iTMS in some kind of truly affordable pricing deal, the DVR is needed to get everyone moved over to iTunes to watch their TV as well as listen to music (especially since TiVo seems to be off in the weeds somewhere). Being able to rip CDs didn’t prevent the iTMS from becoming the success it is today. There’s no reason for Apple to fear the DVR.
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Well, ripping CDs didn't prevent the iTMS from becoming popular because CDs cost twice as much. If people can get movies from the DVR almost a week before the iTMS makes them avalible, and for no cost, people will do so. What could make this profitable for Apple is if they put a DRM restriction on the recorded shows which made the iTMS restrictions look better.