I bought the Apple TV the moment it came out about 9 months or so ago. Initially surprised by the tethering requirement to a computer running iTunes, I used it quite a bit as a giant picture frame (showing off on a 50" plasma), playing music during parties and watching kids shows with my daughter. Now, with Take 2, Apple has stepped it up and provides HD quality movies (and 5.1 Dolby Digital audio) and, less talked about, removed the need for a separate Airport Express to stream any iTunes audio through your Entertainment center.

But very interesting to see is how a technology called Bonjour (formerly Rendezvous - 13 year old Apple technology, first available in AppleTalk) automatically finds and connects iTunes capable devices on the network and staving off the need for central media management. And it does so quite well and transparently. Movies, music purchased on the Apple TV show up on the iTunes on your laptop and vice versa. When Comcast showed off a central media server for the home at CES 2007 that could stream content to any of your cable connected devices, I thought it was going to give Apple a run for its money on the movie rental business. But more than one year past and still product from Comcast in sight. Don't even start about the current Comcast DVR mess, possibly the worst UI experience I've ever encountered (the Tivo deal may ease the pain a little, but the early news is not encouraging). With Apple TV, no more runs to Blockbuster, or mailing DVDs to and from Netflix, just sit at home and watch whatever you want.

What I admire most about Apple is its ability to not just create new products but that it adjust its business and operating model so those products can succeed. That is a gift bigger companies like Oracle (my former employer) and Microsoft can learn from. Media and content are the new Consumer Packaged Goods of this century and if technology vendors don't invest in the ecosystem around it their technology solutions will continue to yield mediocre user experiences and sub-par adoption.

In converging media markets, the new leaders are going to be the ones that build disruptive business models first and great technology products to support that, second.

Can't wait for Apple to strike a deal with Comcast and similar to the iPhone strategy, replace the Comcast DVR with an Apple TV capable of receiving regular broadcasts as well as tap into the power of iTunes. All Apple needs to do is use its cash war-chest to "threaten" ComCast to go at it alone, just like it "convinced" AT&T it would be better for AT&T not to let Apple become a Mobile Virtual Network Operator.

Tags: Apple, Broadcast, Comcast, Consumer Packaged Goods, DVR, Netflix, Media, Entertainment, ITunes, HD, Mobile

Traditional Broadcast Media is about to get a major overhaul. Traditionally the demi-cartels, consisting of the networks (like ABC, NBC, CBS or in radio Clear Channel, Vivendi etc.) have a stronghold over content production and distribution. Control of these segments is under tremendous new pressure.

1/ Content stronghold
For less than the average cost it takes to setup a restaurant, no more than $50,000, a professional video content production company can be created to produce top quality 1080p HD content (radio can be produced at a fraction of that cost using podcasting technology). Imagine a world in which the number of content production firms rivals the number of restaurants in your town (and not just Al Gore's new Current Network). Soon we will embrace new anchors and fresh programming throughout the whole season, instead of the four seasons of repetitive programming mix we have been forced to swallow for so long.

2/ Distribution stronghold
Most networks own the stations. Up-and-coming content producers are forced to do business with and, obey to the rules of distribution players to get exposure. Now with the advent of IP Television, Podcasting and upcoming convergence technologies from Tivo and Netflix and others, diverse content will be brought to anybody with an internet connection. The judgement of good content will finally rest in the hands of the viewers.

Two major factors play a role in the accelleration of change:
1/ The slowdown: The FCC is working at its own pace to change the 40-year old rules of broadcasting through governmental processes and buy-in.
2/ The speedup: The unstoppable adoption of the Internet will create new broadcast heros and "networks" that reach a broadcast and market hungry audience; our youth.

Networks better get their act together, build their own internet distribution delivery strategy, determine what people really want to watch, use real (not analytical or statistical) popularity data to up-sell popular internet programs to network television. It is not too late for networks to respond, but their time is running out.

Let the games begin.

Tags: Media, Broadcast, Al Gore, Video, Demi-cartel, IP TV, FCC, Television, Content, Podcasting, Networks, Gaming, Food, Content