Screaming Penguin

Since there are already guides out there for turning your Mac Mini into the "living room computer" it only makes sense. Apple seems to be doing a great job of simply following their users lead, then taking them one step beyond what they can do on their own. ThinkSecret:

Apple's Mac mini will be reborn as the digital hub centerpiece it was originally conceived to be, Think Secret sources have disclosed. The new Mac mini project, code-named Kaleidoscope, will feature an Intel processor and include both Front Row 2.0 and TiVo-like DVR functionality. [snip] The new Mac mini is also said to sport a built-in iPod dock, a feature that was scrapped from the Mac mini Apple first introduced one year ago. Other hardware specifics are unknown, such as whether the Mac mini will feature video recording out of the box or whether an add-on will be offered for those looking to employ the Mac mini not as a second computer but as their living room command center. [snip] Specifics surrounding Front Row 2.0 and Apple's DVR application are limited at this point, although sources with knowledge of the project have dubbed the latter a "TiVo-killer." The moniker might not be without some bias, however, as sources report that talks of an Apple-TiVo deal recently fizzled, prompting TiVo to independently announce this month that it will soon offer customers the ability to copy stored content to a video iPod.

Caesar at Ars doesn't buy it. The core of his aregument is this:

The question, then, is where does the "record TV shows with your DVR and transport them to your iPod for free" plan fit in with the "pay us $1.99 for a show, while we build our catalog" plan? In short, it doesn't. Yes, I know you can rip audio CDs bought at the store using iTunes. That's not really a parallel example of seemingly contradictory functionality though, and here's why. TV networks and cable companies are already turning to on demand to monetize already-aired content. An Apple DVR not only competes with Apple itself, but it puts Apple right into the thick of other on demand services, some of which are being put out there by the very same people Apple wants to work with.

I must admit, I still see the iTMS video and DVR as separate markets, especially in the long term, but more on that in a sec. The problem is Caesar goes on to answer his own question:

It has been seven weeks since launch, and how many new shows are available for download? Zero. Apple still has the same five shows they started with. To me, this signals problems in Cupertino. Big problems. Since the launch of video iTunes, the entertainment industry has been making deals left, right, and center. Except Apple hasn't been a party to them. Doesn't anyone find this odd?

Bingo. Apple is dealing with the entire entertainment industry right now from a position of signifigant strength. While he may be right that TiVo is evidence that people will not go for quality when the cable company will give you cheap in the set top market, I think Apple has signifigant sway in this area. Indeed, Atrox and I both agreed that even at "Apple Prices" this thing would be a "must buy" item if it shipped. Moreover, if the the TV peeps don't want to play ball with Apple (mostly because they are dicks and like the music people want to continue to be dicks and the know the cable people are as big, if not bigger, dicks than they are), then Apple has a product entry to sidestep their whole deal. All this aside. Let us go back to the iTunes and CD ripping example for a second. If Apple added DVD and Video Cap "rip/mix/burn" to iTunes 7, would that change the nature of the iPod? No. Of course, barring passage of the DMCRA in a timely fashion, it is important to note that ANY DVD ripping is illegal under the current copyright regime, it common place and easy nature aside. Here you have to look at delivery methodology. Now, for the first time, a Bush FCC is actually showing some preferences for the consumer and freeing up a la carte cable. I think this is actually an already dated concept. I look at iTMS and I think, "Gee, the price is a little high for the quality you get, but if I could just pay $0.5-3 for each show I want to watch, perhaps with a "ad/ad free" option, I wouldn't even need cable. Frankly, I would be willing to give HBO, for instance, $2 an episode for Rome or Showtime $2 an episode for Queer as Folk. If I don't want to buy the whole "movie" package thing, which I don't, that is a better deal for me than their whole programming package. Moreover, I think this would expand their markets and allow them to capitalize on a big hit show in an even larger way. Fox's market dept. knows how to get customers and Sci Fi has already learned that the internet can really be your friend and they have, along with Fox, opened up new memes for content in association with their brands. The music industry is about to implode because they haven't grasped, yet again, that a disruptive technology is about to change their business (for the better, even). If the TV asshats don't wake up soon, they will find themselves in the same boat. MacRumors says that the next iLife will include FrontRow with support for the Apple Remote:

According to an unconfirmed report, Apple is set to release new versions of iLife and iWork in mid-January. iLife '06 will include support for a $50 optional remote control accessory -- and presumably bundling the Front Row media application into the Apple suite. Front Row was originally released with the iMac, which comes with the remote standard. Meanwhile there are whispers that iWork may finally include a spreadsheet application as previously rumored

Jupiter calls it a big shot over Redmonds bow:

I've been thinking more about Apple introducing a Mac mini with a DVR and the more I think about it, the more interesting the implications become. First, this would be a big turn around for Apple that's argued long against integrating TV functionality into a PC (of course, Apple will point out exactly why things are different now should they introduce this)but that's only part of the story. Steve Jobs will likely do what Microsoft could not and that's make the press believe. The enthusiasts will follow. A mini with this capability could easily become a core part of the digital hub over time. Think enthusiast market first. Then think what happens when this supports HD with an integrated cable card. The PC is already a repository for music and photos. This could help move the transition to both home made video content as well as commercial stuff. iTunes is already doing well on music. Now add in episodic TV shows and movies. With integrated iPod support, Apple only boosts that device as the de-facto standard for mobile entertainment. Now, think about if Apple has two great quarters on top of the holiday season in 06. What position does that put them in terms of digital entertainment in the home (and out of it?) Even if there market share drops a bit overall, they could be poised to be a dominant player. Not just a strong one. No need to make a game console a Trojan horse for entertainment, consumers will likely just let this in through the front door with open arms. If I were Microsoft and this is real, I'd start to be a little more concerned This isn't just about digital music anymore, it's about who owns the digital home.