New iPhone Pricing May Encourage Continued Growth in Placeshifted Video

Apple’s new third generation iPhone 3GS was announced this week, and it’s being touted by the company as “the fastest, most powerful iPhone yet,” with enhanced speed over the second generation model in launching applications and loading Web pages. Apple also cut the price of the existing 8GB iPhone 3G in half, from $199 to $99 (for new users or those qualifying under their AT&T contract). The first generation iPhone television ads were billed as “the Internet in your pocket,” and now that mobile Internet is even faster and more accessible than ever with the 3GS. Apple has also added video recording with on-the-fly editing capabilities to boot.
The annual next-generation delivery of the iPhone that we’ve come to expect continues to help drive the utility and wonder that is the mobile Internet. In the 2009 Edison/Arbitron Internet & Multimedia survey, 36% of respondents said the Internet was the “most essential” medium to their lives, just behind TV at 40%. The lower cost iPhone (3G) will put the mobile Internet into more pockets while the more feature-rich newer iPhone (3GS) will further enhance the experience (and expectations of what mobile Internet can do). With the growing usage of mobile entertainment and media, and the amount of non-traditional TV viewing we are observing — Podcasting, Slingbox/placeshifting, Mobile TV — to name a few, might “the Internet” have already overtaken TV as “most essential” and we just don’t know it yet?

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