Apple Enters Set-Top Box Game

By Colleen Taylor -- Electronic News, 9/13/2006

After weeks of hype, Apple Computer Inc. debuted its latest products yesterday in San Francisco amidst fanfare and fawning, both in the traditional media and the blogosphere.
 
The big buildup led to big news for the tech industry: Apple's CEO Steve Jobs introduced a set-top box, code-named iTV. Apple also trumpeted the launch of a movie download service that expands the services provided by Apple's iTunes digital store.

The iTV's debut is apparently an effort for complete control of consumers' living rooms—a battle the company will fight with Microsoft  and Sony, which have both long been in the media game.

"Apple is in your den, in your living room, in your car, and in your pocket," Apple CEO Steve Jobs said at yesterday's press conference. "I hope this gives you a little bit of an idea of where we're going."

The iTV device is set to convey content downloaded from iTunes by connecting customers' computers and home entertainment systems. The iTV has built in Wi-Fi network capabilities, and will be able to connect with computers wirelessly or through Ethernet. The box will be controlled by an Apple remote that synchs up with a user's living room entertainment system. iTV will feature HDMI, traditional three-plug composite and optical cable video outputs. Apple will begin selling the device in Q1 2007 for $299.

Through deals Apple announced yesterday, Disney, Pixar, Touchstone, and Miramax will make their movies available via iTunes on the day they come out on DVD. New releases will cost $14.99 or $12.99 for those who pre-order, and older movies will cost $9.99. Apple will also sell National Football League games for $1.99 a game, or $24.99 for a team's season pass.