iTV Has More To Offer Than Video Streaming

Remember how everyone laughed when Steve Jobs introduced the original iPod as a "breakthrough media device"? Its titanic $400 price tag, Mac-exclusive compatibility and adequate 5 gig hard drive were roundly assumed to spell doom. Such innocent days. My reaction on Sept. 12 was a lot like those thrown around at the introduction of the […]
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Remember how everyone laughed when Steve Jobs introduced the original iPod as a "breakthrough media device"? Its titanic $400 price tag, Mac-exclusive compatibility and adequate 5 gig hard drive were roundly assumed to spell doom. Such innocent days.

My reaction on Sept. 12 was a lot like those thrown around at the introduction of the iPod: Nice interface, preposterously high price, good design. Oh, and I'd take one if you're giving it away free. But, as ever, the first introduction and feature-set is just for planting the seeds for a whole-sale living room play to come.

And reading a recent column from Robert X. Cringely, I realized why I felt like I'd been played – this box is about way more than playing standard definition iTunes TV shows and movies in the living room.

As Cringely notes, the inclusion of an HDMI port on the back of the iTV makes absolutely no sense unless Apple has plans to offer HD video through iTunes. So that's next on the road map.

But the biggest insight he's gleaned is all about communication, not one-way entertainment:

Now what about that USB port on the back of each iTV box? Giving his tour of the gizmo last week, Jobs rushed right past the USB port. What could that port be for? It's not for a USB hard drive, that's for sure, because the key brain in this system is back in your Mac or PC and its very large hard drive. Nor will Apple (immediately) enable the iTV to act as a digital video recorder, because that might step on TV network toes before Apple is ready to do so. The USB port is clearly intended for an Apple iSight camera, a webcam to go with your HDTV. It's iChat for Grandma.

He's right. It might not be in the next year, it might not be in three years, but Apple will eventually offer video-conferencing via HDTV through the iTV. It makes perfect sense. It's a totally unexploited opportunity for Apple to grow and really stake a claim againt a variety of smaller players that have yet to offer a compelling end-to-end solution that meet the majority of people's needs.

It's absolutely brilliant, and there's no reason it can't work. And that will be worth the exorbitant price Apple wants us all to pay for the box.