For Consumer Product Strategy Professionals (Length: 11 pages)

Executive Summary (This is a document excerpt)

Apple's appetite for a slice of the video pie has proven bigger than its reach. The iTunes video experiment of selling TV shows for $1.99 and movies for upwards of $9.99 — although a great service to the 4% of online adults who regularly buy video on iTunes — is not a mainstream model. Importantly, it won't translate into what Apple really wants: increased demand for sophisticated hardware like the iPod touch and Apple TV. Those devices still have a role, but they won't go beyond early adopters without opening the business model to include video experiences not offered today. Media strategy professionals take note: there's still plenty of opportunity to stake a claim in video territory.