Apple Upgrades iPod Lineup and Apple TV (original) (raw)

Sept. 1, 2010

SAN FRANCISCO Apple jumped into the social networking business on Wednesday, introducing Ping, a service built into iTunes that is intended to help users discover new music and, presumably, buy more songs from Apple.

Steven P. Jobs, Apple’s chief executive, showcased Ping at an event here along with a string of other new products. They included updates to Apple’s iPod line of music players and new software that allows wireless printing from iPads and iPhones.

Mr. Jobs also introduced a much-anticipated upgrade of its Apple TV set-top box that is smaller and, at $99, significantly cheaper than its predecessor, which did not sell well. It allows users to rent television shows from Fox and ABC for 99 cents, and like many other devices, it can also stream movies from Netflix.

Mr. Jobs said the changes to the iPod lineup, which include new versions of the Shuffle, Nano and Touch models, were the most significant since Apple introduced its first music player in 2001.

“This year we’ve gone wild,” Mr. Jobs said. Sales of iPods have declined this year, but revenue from them has continued to grow as more buyers choose the higher-priced Touch model.

An unexpected announcement from Mr. Jobs was the introduction of Ping. With it, users will be able to follow friends and see what music they have bought or enjoyed, what concerts they plan to attend and what music they have reviewed. They will also be able to follow bands and get updates on their new releases, concert tours and other events.

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Steven P. Jobs announced a new line of iPods, as well as Ping, a social media service based on music.Credit...Justin Sullivan/Getty Images

Many other online music services like Pandora and Zune Social from Microsoft already have features that allow friends to share information about music.

While other social networks have struggled in the shadow of Facebook, some analysts said that Apple had a chance to turn Ping into a success. The service will be instantly available to 160 million iTunes users, as long as they download the latest version of the software, which Apple released on Wednesday.

“Apple wants to create even tighter links with iTunes users and keep them a click away from buying a song,” said Mike McGuire, a vice president with Gartner. “Ping will give people more reasons to spend frequently and rapidly.”

While Ping may put Apple in competition with Facebook, its impact on the struggling MySpace may be more pronounced, analysts said. MySpace has emphasized music over the last few years.

“This isn’t about reconnecting with your girlfriend from eighth grade,” said Michael Gartenberg, an analyst with the Altimeter Group. “This is about talking to people about music.”

A spokeswoman for MySpace declined to comment.

Mr. Jobs said Ping would have simple privacy controls. Anyone will be able to follow bands and receive their updates, and users will be able to say whether they want to be followed by anyone or only by people they approve.

The new iPod Touch is thinner than the previous model and comes equipped with front- and rear-facing cameras, as well as Apple’s FaceTime video chatting software. It also has the same high-resolution retina display that Apple first showcased on the iPhone 4 earlier this year.

The Touch comes in three versions; the cheapest has 8 gigabytes of storage and costs $229.

Apple shrank the iPod Nano by replacing its wheel interface with a touch screen. It costs 149foran8−gigabyteversionand149 for an 8-gigabyte version and 149foran8−gigabyteversionand179 for 16 gigabytes.

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Steven Jobs introduced the new touch-screen iPod Nano, which will be smaller and cost $149 for an 8-gigabyte version.Credit...David Paul Morris/Bloomberg News

In introducing the new version of Apple TV, Mr. Jobs acknowledged that the set-top box had not been as successful as he had hoped. The new version replaces the download-to-own model with a rental service that has shows from Fox and ABC for 99 cents. Mr. Jobs said the other networks had yet to agree to Apple’s pricing.

“We think the rest of the studios will see the light and get on board with us,” he said.

But that is far from guaranteed. All television studios are wary of distributing their shows in new ways on the Internet for fear of harming their existing businesses, which rely on cable and satellite subscriptions.

Fox and ABC agreed to Apple’s pricing model only after lengthy negotiations and heated internal discussions, especially at Fox’s parent, the News Corporation.

ABC’s participation is not surprising, given that Mr. Jobs is the largest shareholder and a board member of its parent, the Walt Disney Company.

For its part, Fox suggested that its agreement with Apple was something of an experiment. In a statement, Jim Gianopulos, the chairman and chief executive of Fox Filmed Entertainment, said the studio was excited to work with Apple over the next several months to “explore this innovative offering.”

Other networks, like CBS and NBC, are pointedly not participating in the rentals program. “Episodic television is not a pay-per-view business,” said Keith J. Cocozza, a spokesman for Time Warner, which owns HBO, TNT and other channels. Companies like Time Warner are instead supporting the existing subscription TV model, which is being gradually extended to the Web.

Analysts said that the new Apple TV was likely to be more of a hit than its $299 predecessor, in part because of its low price, but also because of software that allows users to stream content from their iPhones and iPads to their TVs through the set-top box. But they said Apple’s challenges in securing more content underscored the continuing difficulties that technology companies faced in cracking the TV market.

“Apple has not yet made a significant play for control of the TV,” James L. McQuivey, an analyst with Forrester, wrote on his blog.

Brian Stelter contributed reporting from New York.

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