SAN FRANCISCO – With characteristic charm and aplomb, Apple's CEO Steve Jobs on Tuesday revealed that Apple's market-leading iTunes Store will offer downloadable movies for $10-$15. To complement the movie announcement, Jobs offered an uncharacteristic sneak peek of a $300 media box that will stream movies, music and TV shows from a nearby computer to the living room TV.
Code-named the "iTV." the wireless WiFi box will go on sale in the first quarter of 2007, Jobs said. The device looks like a flattened Mac mini, absent a DVD drive, but including high-definition HDMI, as well as conventional video and audio outputs.
"These are probably the most gorgeous graphics you've ever seen on a big-screen TV," joked Jobs, "and I've got a really big TV."
Demonstrating iTV on a movie-theater sized screen, Jobs showed several movie clips at 640 x 480p – the new download resolution for Apple's movies and TV shows – which jobs said was "near-DVD quality."
Jobs controlled the iTV with a familiar Apple remote control, scrolling through an on-screen interface nearly identical to Apple's existing Front Row software.
Jobs also unveiled a completely revamped line of iPods, from a tiny new $80 iPod Shuffle to five new multi-colored iPod nanos, priced $150-$250.
"Now I know all the little goodies I want for Christmas," said Grammy-winning R&B singer John Legend in between two songs he played at the conclusion of Jobs' speech.
The iTV device signals Apple's move from the home office to the living room – with an iTV in the home, users will be able to access and play all their digital media in their home theaters without putting a computer in the same room.
"Apple is in your den, Apple is in your living room, Apple is in your car, and Apple is in your pocket," Jobs said, summarizing the company's comprehensive media strategy.
Jobs also introduced iTunes 7, a major upgrade to the market-leading media jukebox and online store.
Like the company's initial roll-out of TV show downloads, the movie roll-out is modest to begin. Apple will initially offer about 75 films from four studios owned by Disney – Walt Disney Pictures, Pixar, Touchstone and Miramax. Jobs serves on the board of Disney.
Last October, Apple offered five shows from Disney's ABC network, which has since grown to 220 shows from 40 networks, Jobs said.
The downloadable films will be available the same day as DVD releases, Jobs said. At launch, the library will include the ability to pre-order "Pirates of the Carribean" and Pixar's "Cars," among others.
Jobs said the films are four times the video quality of the initial TV downloads Apple offered. Jobs said the movies will be near-DVD quality with surround sound and are playable on iPods and multiple computers in the home.
Disney CEO Robert Iger joined Jobs on stage to promote the new initiative. He waxed romantic about the traditional film experience: the curtain, the lights, the big screen, but acknowledged movies had changed.
"We also know people love to watch movies at home," he said. "Mostly on DVD. Alone, with your wife or a date or with your family. Now we're making movies available on this platform. It's basically more opportunities to watch movies."
Jobs dubbed iTunes 7 "the most significant enhancement to iTunes since we introduced it in 2001."
Jobs said the upgrade offers better media navigation through album artwork and gapless playback, a long-requested feature that eliminates the pause when transitioning from one song to the next.
Most noticeable enhancement in iTunes 7 is "Album Flow," an intuitive way to visually browse albums, TV shows and movies in iTunes' media library. The same view was also added to the iTunes Store for navigation. Jobs said the new iTunes software would also go online and find missing album artwork for iTunes customers.
"The thing I'm still waiting for is lyrics," Apple co-founder Steve Wozniak, who sat in the audience, said afterwards.
The iPod line received mostly cosmetic changes for the holiday season – brighter screens for the iPod; new colored aluminum cases for the nano, and higher storage across the line. Jobs also showed off nine $5 downloadable video games – all controlled by the iPod's scroll wheel – including Tetris and PacMan.
The diminutive iPod shuffle was seriously overhauled, morphing from the familiar white plastic stick of gum into a flat, nearly square aluminum matchbook. Now equipped with a clip, the one-inch square device was redesigned for wearability, Jobs said. Only available with a 1 GB capacity, the shuffle will sell for $80.
The full-sized iPod, offered in 30 and 80 GB models for $250-350, was upgraded with a 60 percent brighter screen and 75 percent better battery life, Jobs added. It also features a new search function, gapless playback, new headphones and quick scrolling.
The nano line was made slightly thinner and more visually arresting with new aluminum cases available in silver, pink, blue, green and black. The world's best-selling portable media player is now offered in three capacities and price points: 2, 4 and 8 GB at $150, $200 and $250.
Jobs said each product demonstrated at the event is available for purchase or download today, except the new shuffle, slated for October, and the to-be-renamed iTV, not ready until early 2007.
Jobs finished with a hint of more to come:
"We'll see you all again soon," he said.
