On Monday, Apple issued an update iOS 4.3 to its Apple TV set-top device that will allow users to stream high-definition TV shows purchased from iTunes.
Apple says the update will allow users to purchase their favorite TV shows from the iTunes Store and watch the shows which they already own, without any commercial breaks in the HD format.
The update will also enable users to browse and play videos from Vimeo, access their video inbox and mark videos which they want to watch later.
When Apple first launched Apple TV, it only allowed users to rent movies and shows and there was no option to purchase titles for permanent ownership. With this update, for users in the U.S., Apple has also rolled out preliminary iCloud support , allowing users to re-download some purchased television shows, though movie support is not yet available.
In conjunction with this update, Apple has also added a ‘TV Shows’ button to the Purchased section of iTunes. This enables cloud storage of all of your TV shows, effectively moving your TV shows to iCloud.
Noting that the update has arrived at a stage when the web-based entertainment viewing is in a major state of upheaval with Netflix and Blockbuster battling Wal-Mart for online rentals and numerous devices offering streaming to bridge the computer-TV set gap, NewsFactor says that content owners are in a fix trying to assess whether they are better-off with pay-TV operators such as cable or satellite or streaming services like Apple, Hulu or Netflix.
Though this update might seem like a small change to some, Michael Inouye, digital-home analyst for ABI Research, sees the cloud link for Apple TV as a significant step. “This step further enhances Apple’s cloud strategy, namely iCloud and more tightly integrates the iTunes/Apple experience across devices. Though the update is limited to TV shows for the time being, movie purchases might not be too far away,” he said.
Commenting on the negative side of this development, Inouye remarks that since Apple does not command the same power in the video space as it does for music, it is possible that the content holders could put restrictions on Apple if the company were to offer a subscription service akin to Netflix. He noted that Fox recently said it would hold back some content from downloading or streaming to give pay-TV operators an advantage.
Though this might suggest that the DVD’s days are numbered, a poll in March by ABI of 200 Americans found that nearly 73% rent discs sometimes while 80% still buy them. In addition to this loyalty to the physical media, the other factor which affects streaming and downloading is the broadband requirement which in many cases is limited.
Inouye said,”HD content requires a large amount of bandwidth, even with bit rates far below Blu-ray and as more consumers embrace these cloud-based technologies, the demand on the data pipes will grow.”
As further evidence of the transition to digital distribution via download or streaming, Amazon.com, Microsoft, Netflix and Sony are also using the cloud approach in the U.S., while overseas there are HbbTV and YouView in Europe or acTVila in Japan .
The analyst noted,”So Apple is not really trailblazing any roads in this case, but … could have a more substantial impact on the market as their content flows more freely across devices.”
You can avail the update by visiting Settings>General>Software Update on your Apple TV 2G.