11/22/2005

Threat to Apple's business model?

Yesterday, Digital Video Recorder giant TiVO announced that they will make recorded programs available for download onto Apple's Video iPod. So ... how will ABC make money on this? I already have a Season Pass subscription to Desperate Housewives on my TiVO box (for, relatively speaking, free), so with this announcement, I won't need to buy the episodes through Apple's iTunes Music Store.

What else may be a-foot? Could Apple be shooting itself? How long could this possibly last before the networks, producers, movie studios and the talent themselves demand some form of compensation for this additional distribution?

This may also give cause to reconsider the whole notion of "fair use" which allowed us to record programs for our own use, but now that we can do that and distribute them to an additional device ... well, that's going to raise concerns. (However, it should be noted that with TiVO's announcement, they also noted that the programs downloaded from their DVR to a Video iPod will be watermarked with an identifier of the original recorder so that illegal distribution can be traced.)

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