The Buzz: IM Truce and Video iPods

Two major stories hit the wire today: Yahoo and Microsoft announced a partnership that will tie their instant messaging networks together starting next year, and despite Steve Jobs' denial, iPods with video surfaced at today's Apple media event. Here's what the opinion-makers are saying across the Web:

iPod + Video

"When Steve Jobs took the stage here in San Jose today, most people expected him to release a Video based iPod. And indeed he did, but he actually introduced much more. In a sense, he has shown the tech world what it means to create a total consumer eco-system for integrating images, music and video into a digital lifestyle. The bottom line is that Apple has another big winner with this new iPod which now supports video. But more importantly, their approach to creating an entire consumer eco-system and the way they deliver a new single UI between devices is the real news here."
- Tim Bajarin, Creative Strategies

"We've known for some time that there is strong consumer interest in portable video with 64% of consumers interested in the function. Despite that interest and the suitability of video as a mobile task, however, there have been a few hurdles that have plagued adoption. Most notably, they come down to three issues; form factor and battery life, which are both consumer priorities in mobile devices and most importantly, the lack of legal video content. By creating a Macintosh that has synergy with the new iPods, Apple is re-affirming their mission to become the core hub for the digital home, with the best iPod experience to be had only on the Macintosh."
- Michael Gartenberg, Jupiter Research

"Most importantly, the video iPod comes with music video and TV contents that appeal strongly to early adopters of portable video devices. Our survey data indicates that music video, TV dramas, reality TV shows, and cartoons are highly desirable video content for portable device intenders. Now iTunes offers them at $1.99 each for download. Expect the demand to be high, and for TV networks to closely examine this iPod's ability to more effectively monetize their content."
- Harry Wang, Parks Associates

"What's going to happen now? You're going to go buy one. Your mom is going to buy one. Your grandma is getting one. And downloadable video will become as commonplace as downloadable music. And Apple will win in this space, as well."
- Gizmodo, Technology Web log

"I don't think there's much reason to combine video and music in the same application. Seems to me the experiences are very different -- and you risk compromising them -- and the user interface -- by mingling them...The way Tivo handles music is awful compared to its elegant program guide...That said, what Apple got most right was simplicity. Common pricing at $1.99 that's not too expensive. No subscriptions. One copy/purchase that plays on a bigger screen and on the portable device. Simplicity helps a lot when launching a new market."
- David Card, Jupiter Research

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