Apple's Rumored Video Device Drives Speculation

Described as a version of the Mac Mini, Apple is reportedly looking to deliver unique DVR capabilities in the Intel-based devices next year.

Jupiter Research Vice President Michael Gartenberg told MacNewsWorld if Apple is taking the US$500 Mac Mini, combining the user experience of its Front Row multimedia interface, and adding DVR functionality and iPod compatibility, the device could be a living room star.

"It would have all the ingredients that add up to a very compelling solution for consuming content in the home," he said.

Different Video Path

Endpoint Technologies Associates founder and President Roger Kay said such an Apple device would be a natural step for the company, which has found one of its greatest successes ever in the wildly popular iPod digital music player, now available in one model capable of playing video.

Referring to Apple's use of video streaming and the new video iPod, Kay told MacNewsWorld the company serves the video by compressing files, hosting them on its own servers and sending it to computers for transfer to iPods.

"It seems as if Apple has chosen a different path toward video entertainment," he said.

There is speculation that the different video delivery model may be good for users, who do not have to hog hard drive space, and for content holders, who retain a degree of control and limitation over the video.

Taking Video Challenge

Gartenberg said with its relationship with music and video content holders, its dominating iPod players, and the ease-of-use that is synonymous with Apple, the company controls different parts of the digital video equation.

"It's suddenly become a very interesting proposition for them," he said, referring to a digital entertainment solution as opposed to a computing solution. "It's a bit of a departure for them, from a historical standpoint, but it's the type of product no one has achieved critical mass with in the market."

Gartenberg added with the different plays for digital media consumption -- including Microsoft's (Nasdaq: MSFT) advances in the media center PC market and Intel's (Nasdaq: INTC) Viiv drive to put its technology in home viewing and listening -- there is a situation similar to how digital music looked before the iPod.

Lesson Gives Leverage

However, as Kay pointed out, even though Apple has already established relationships with video content holders and service providers, the company's deals with music labels appear to be at risk and may foretell of difficulty with video companies.

"Right now, the music content owners are griping about Apple's fixed-price model, so there's pushback," he said. "It could get pretty messy," he added, referring to license deals that need to be renewed.

"The video guys have been alerted by what happened with the music guys," Kay said.