Apple's video iPod marketing coup
Tags: Marketing, Apple, iPod, Video iPod, Apple Movies
Apple now sells a video iPod as well as downloadable episodes of ABC's "Desperate Housewives" and "Lost". But a quick look through the Apple Store shows that what Apple actually has done is rationalize their iPod product line. As recently as a few months ago, Apple had five iPod products: iPod Shuffle, iPod Minis, iPods, iPod U2 Special Editions, and iPod Photos. Now, it has three: iPod Shuffles, iPod nanos, and iPods (with video). Further, the price of the new video iPods didn't change, except that what used to be a 20 GByte iPod for $299 became a 30 GByte video iPod for $299.
Our conclusion: Steve Jobs just got international media attention for adding a feature -- video playback -- to the its traditional iPod line. This ability to generate visceral excitement and buzz is what makes Steve Jobs the best marketer in high-tech.
One interesting question will be whether all the color screen iPods are actually capable of displaying video. My bet is that they are actually the same hardware as Apple was selling previously, but that the new ones simply had a software update. It wouldn't surprise me if Apple put up a software updater for the previous 20 GByte and 60 GByte iPods to give them video capability (although no one should come gunning for me if they don't).
Regarding the ABC episodes deal, Steve may have been able to cut that deal simply because of the relationships he has built at Disney through Pixar. It's a terrific way to provide some high-value content to video iPod owners and seed demand for them without any content owner giving away the store. While I doubt video content demand will go through the roof in the short term, I think the price points -- $1.99 per episode -- are low enough and the shows in demand enough that they'll sell a few million downloads before Christmas. And that will be enough for other networks to want to join the fray.
Bottom line: those people who sold Apple stock off today will be really sorry in six months that they did.
Apple now sells a video iPod as well as downloadable episodes of ABC's "Desperate Housewives" and "Lost". But a quick look through the Apple Store shows that what Apple actually has done is rationalize their iPod product line. As recently as a few months ago, Apple had five iPod products: iPod Shuffle, iPod Minis, iPods, iPod U2 Special Editions, and iPod Photos. Now, it has three: iPod Shuffles, iPod nanos, and iPods (with video). Further, the price of the new video iPods didn't change, except that what used to be a 20 GByte iPod for $299 became a 30 GByte video iPod for $299.
Our conclusion: Steve Jobs just got international media attention for adding a feature -- video playback -- to the its traditional iPod line. This ability to generate visceral excitement and buzz is what makes Steve Jobs the best marketer in high-tech.
One interesting question will be whether all the color screen iPods are actually capable of displaying video. My bet is that they are actually the same hardware as Apple was selling previously, but that the new ones simply had a software update. It wouldn't surprise me if Apple put up a software updater for the previous 20 GByte and 60 GByte iPods to give them video capability (although no one should come gunning for me if they don't).
Regarding the ABC episodes deal, Steve may have been able to cut that deal simply because of the relationships he has built at Disney through Pixar. It's a terrific way to provide some high-value content to video iPod owners and seed demand for them without any content owner giving away the store. While I doubt video content demand will go through the roof in the short term, I think the price points -- $1.99 per episode -- are low enough and the shows in demand enough that they'll sell a few million downloads before Christmas. And that will be enough for other networks to want to join the fray.
Bottom line: those people who sold Apple stock off today will be really sorry in six months that they did.
posted by Carl Howe at
4:09 PM
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