Ad-free TV shows on iPods as Disney strikes deal with Apple

by Daniel Farey-Jones Brand Republic 13-Oct-05, 09:00

LONDON - Apple has unveiled a new video iPod together with a deal to sell Disney TV content such as ABC's 'Lost' for $1.99 an episode, a day after broadcast and without ads, from its iTunes music store.

Disney chief executive Robert Iger, who joined Apple boss Steve Jobs on stage in Silicon Valley for the launch, said it was the beginning of a "long and prosperous relationship" and "the first giant step in terms of making content available to more people in more places".

Current episodes of 'Lost' and 'Desperate Housewives' will be available the day after they are shown on TV, with no ad breaks, although they will take up to 20 minutes to download. The video quality will be lower than it is on DVD.

The new iPod costs $399 for the higher memory version, which can hold up to 150 hours of video and has a 2.5in screen, while Sony's PlayStation Portable has a 4.3in screen.

There is no word yet on when the product and service will come to Europe.

Other video content available from the US iTunes store within the next week includes 2,000 music videos and six short films from Pixar, the animation studio headed by Jobs.

Jobs has an existing relationship with Disney in that it distributes Pixar films, and told the audience he first floated the iTunes tie-up to Iger last spring.

"I think it's hard to overestimate the plate-tectonic movement of this deal," he said.

Analysts were unsure about how much demand there will be for watching TV on the iPod's screen.

Nitin Gupta, an analyst at Yankee Group, said: "The market is likely small for people who want watch a portable video on a little screen. That will not be the main reason people buy the iPod. It is just an enhancement."

Apple also unveiled competition for Microsoft's PC/TV crossover Microsoft Media Center. New remote control technology for its iMac called Front Row will allow people to use the computer more like a TV, playing DVDs and songs.

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