Blog: iTV and So Will You

ByABC News
January 9, 2007, 4:44 PM

Jan. 9, 2007 — -- Today's breathless headlines will undoubtedly lead with Steve Jobs' jump into the cell phone market with the iPhone.

But that "revolutionary" product won't be out until June and will only be available on the Cingular network in the U.S.

My guess is that his other announcement -- the "AppleTV" -- is going to make a bigger impact on our lives because it changes the game in a more ubiquitous media experience -- television. And you can place an order for it today (it ships next month).

Today, about 98 percent of American households have at least one television. Cell phone market penetration is much less common with only about 65 percent of us walking around with a mobile phone in our pockets or purses.

Apple's new television device bridges a gap in the world of media convergence and without any wires. AppleTV promises an easy-to-install and easy-to-use solution for hooking up your new HD television to the Internet and the millions of hours of digital video that exist out there.

If Apple has its way, you'll be watching downloaded movies, news programs, television shows and the latest viral video while sitting in your living room instead of in front of your home computer. And it will all be on-demand and served up piping hot from iTunes (supposedly the only software you'll need to make AppleTV work).

And the little silver box only costs $299 -- a little more than what it will cost you to rent a DVR from your local cable company for a year. The iPhone will retail for $500 or more, depending on the model you choose.

Jobs & Co. have taken the "business trend" of last year (remember Time magazine's person of the year was "You" thanks to the rising popularity of user-generated content online) and made it accessible in a whole new way. YouTube comes to the living room, if you will.

If I was a betting man, I'd be putting money on the AppleTV changing the world in a bigger way than a super-slick new cell phone. And it will all happen quicker than any of us can imagine.