The new video iPod concealed another more important announcement the new iMac. The machine looks similar to the previous iMac but the devil is in the details. Key to the new is Front Row. This is remote control that has the same kind of simple design as the iPod Shuffle and allows users to control their music or videos from their own sofa. Its become a genuine home entertainment system, with none of the usage challenges of traditional VCRs. In addition, iTunes will start selling videos to video iPod owners AND iMac owners.
The video iPod looks more and more like a trojan horse to allow Apple to enter the video-on-demand marketplace. The 2,000 video library sounds more like an entertainment industry proof of concept than a serious initative, dipping their toe in the water.
Steve Jobs has repeatedly said that video is an immersive experience, how many people really watch TV on those little Casio get-ups, download videos on to PMPs or watch videos on their 3G handset? Sure people will buy them because they look cool in the shop, but they won't use them much in reality. The video iPod encourages customers to trade up to the latest thing, but the new iMac opens up the world of home entertainment to Apple.