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Fri, Nov 21, 2008 - 05:15 AM EST  —  AAPL: 80.49 (-5.80, -6.72%)  |  NASDAQ: 1316.12 (-70.30, -5.07%)

First look: Apple TV and iTunes Movie Rentals (link to photos, video)
Wednesday, January 16, 2008 - 01:58 PM EST

"After suffering a year of media mockery and consumer indifference, Apple TV is poised to leverage its tight integration with iTunes to jump to the front of the line in living room media rentals. The best news: existing early adopters will gain all the new features via a software update without needing to replace or upgrade their existing hardware," Daniel Eran Dilger reports for AppleInsider.

"The new software updates promise to solve a lot of the problems associated with consumers' lack of enthusiasm for Apple TV. For starters, there are now rental movies offered in both standard def and high-definition formats. Apple's movie studio support in iTunes has also expanded over the last year from one studio to all of the major movie studios, meaning there's far more content to choose from," Dilger reports.

"Apple TV hardware arrived last year with support for 5.1 audio and HD video, it just needed a software update and content that took full advantage of its innate capabilities. The new software now enables pass though of Dolby Digital sound for output over HDMI or the unit's Toslink optical audio outputs, so movies with high quality sound tracks can be played back through a receiver supporting Dolby Digital encoding and output to surround sound multi-channel speaker systems," Dilger reports.

"Apple has upgraded the unit's software to both enhance the user interface and to make it far more powerful. The initial version of the software left it acting like a repeater for a desktop computer's iTunes library. Now, users can rent and buy movies, as well as buy music, music videos, and TV programs directly from the iTunes Store using the simple remote control. While music and video purchases can be synced back to a desktop iTunes library, just like the new WiFi Store on the iPod Touch and iPhone, video rentals ordered on Apple TV can't," Dilger reports.

"You can rent movies directly from iTunes for playback on iPods, but those can't be synced to the Apple TV. Therefore, you have to choose whether a rental you order is something you want to watch on TV or anywhere else, before you actually rent it. Given that rentals are $3.99 and $4.99, that decision isn't as deeply ponderous as it might initially seem to be," Dilger reports.

A new menu system presents Apple TV features in two columns: the first lists Movies, TV Shows, Music, Podcasts, Photos, YouTube, and Settings. Under Movies, it presents downloadable Trailers, your Rented Movies, a listing of Top Movies, Genres, and All HD titles, a Search, and a selection of My Movies," Dilger reports.

Extensive full article with screenshots and video of the updated Apple TV in action here.

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Jan 16, 08 - 02:04 pm Comment from: deepdish

"After suffering a year of media mockery and consumer indifference"

what mockery?

I love my AppleTV. I put the movies on myself via VisualHub and usenet. I leave it on with our family photos and my favorite music.

Not sure about movie rental.

Jan 16, 08 - 02:06 pm Comment from: Golfer

You rent front iTunes...and you can't sync to AppleTV ? Not sure about that.....I'll check...

Jan 16, 08 - 02:06 pm Comment from: Mac+

That shit looks good

Jan 16, 08 - 02:09 pm Comment from: It Is What It Is

Another box on the TV with another movie rental option?

OK, but what's the 'breakthrough' worthy of Keynote. Boom it just works?

Also: last chance to buy AAPL under $160 - again.

Jan 16, 08 - 02:16 pm Comment from: I love glossy

Apple TV, Part 2. Return of the Hackers.

Jan 16, 08 - 02:28 pm Comment from: C-1 FC

"After suffering a year of media mockery and consumer indifference"

Consumer indifference? Surely this can't be the same Daniel Eran Dilger who heaped scorn and derision on anyone suggesting version 1 of AppleTV wasn't working out with consumers (at least, ahem, before yesterday when His Steveness™ said it).

Jan 16, 08 - 02:48 pm Comment from: Malthus

@Golfer:

That's not what they said. If you rent directly from the TV, you can't sync that movie back to iTunes on your computer (or presumably then onto your iPod). Guess your dream of being able to run your whole life from the sofa will have to be on hold for a while longer...

Jan 16, 08 - 03:07 pm Comment from: HotinPlaya

@golfer and Malthus

"You can rent movies directly from iTunes for playback on iPods, but those can't be synced to the Apple TV."

I think that is the case, I rented a movie this morning , same way I have purchased movies and TV shows in iTunes, and I can't get it to AppleTV, disappointing, but not a deal breaker

Jan 16, 08 - 03:08 pm Comment from: Golfer

@Malthus,

Can you rent direct from iTunes and then transfer to AppleTV?

Jan 16, 08 - 03:57 pm Comment from: R2

Looks like a complete mess. I'm shocked that this is coming from Apple.

Jan 16, 08 - 04:15 pm Comment from: HotinPlaya

@R2
It does sound messy, but from what I am reading , it looks like we will have 2 types of SD downloads, 640 thru iTunes for use on iPods,iPhones ect, and DVD quality (what is that) for use on AppleTV, and of course HD for AppleTV

If this is the case, seems like they would gave a warning when you rent a movie (like I did) thru iTunes, that it can't be played on AppleTV, even tho AppleTV will play iPod format

Jan 16, 08 - 05:26 pm Comment from: Goople

They did not nail this. I think the future of movies will be a new service called YouTube Movies.

We will "subscribe" to official YouTube movie channels for a fee. (via Google Checkout)

Eventually YT will be built into all TVs...Apple will have to ship true TVs to stay in the game.

Jan 16, 08 - 05:27 pm Comment from: macbookmad

does apple tv have airtunes? If I hook it up without connecting a TV to it (sounds crazy but that's my intent for a few months) will it still play music through speakers via iTunes control. In other words, I want to stream music through it BUT control it via iTunes on my iMac and not through the apple tv UI.

Jan 16, 08 - 05:37 pm Comment from: FreddyThePig

@All you people with AppleTV's, a question.

Have you gotten and applied the upgrade yet?

Is it available yet?

Could it be that all the mess and confusion will be cleared up with the upgrade?

I only ask because I don't have one I use a Mac Mini instead; so far I prefer that to buying an AppleTV

Jan 16, 08 - 07:30 pm Comment from: DG

the software update isn't scheduled for 2 weeks, so it's iTunes only in what looks like Standard Definition only until then

Jan 16, 08 - 07:59 pm Comment from: Think

Yep, I was just going to remind people to "read". Steve said it many times also, available in 2 weeks.

He also said the new software will let you watch part of the movie on any device and then transfer it to iPod or where ever and finish watching the movie.

Jan 16, 08 - 09:22 pm Comment from: theloniousMac

hmmm...

between the article and the comments, I'm confused. I guess even Apple can't squeeze sanity out of Hollywood.

mdn magic word = "think" not as in think different(ly), but just, for god's sake, crying out loud, think.

Make things simple and convenient and people will beat a path to your door. Create obstacles and they won't bother.

Jan 17, 08 - 11:23 am Comment from: shen

his steveness did say you could even watch part on one device and part on another. i think the whole "rent but won't work on AppleTV" is due to the fact that the AppleTV needs a software update that is 2 weeks away?

nah.....

Jan 17, 08 - 01:38 pm Comment from: Synthmeister

AppleTV looks to make boatloads of money for Apple. But one question.

Look at the AppleTV, then look at Time Capsule—same footprint. Now why can't they squeeze one of those 500GB drives into an AppleTV? In fact, why don't they just combine the two gizmos into one killer device, as well?

While they're at it, put a MacMini in there too.

Now THAT would be a home media server!

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