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    Apple 'iTV' will revolutionize content delivery and advertising
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    Where were you when Tim Cook sold Apple's soul?
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Apple TV: iFlop?

Friday, September 14, 2007 · 4:24 pm · 158 Comments

“Jobs’ own ambivalence about the iFlop, however, is evident. At a tech conference in May Jobs took the stage and casually dismissed Apple TV as merely ‘a hobby.’ In briefing Wall Street on quarterly earnings on July 25, Apple execs ignored the video product,” Woolley writes.

Woolley asks, “How did the storied Steve Jobs and Apple botch it so badly?”

As “Apple TV headed to stores on Mar. 21, Jobs faced an ugly reality: The new box would debut with content from only two of the Big Six,” Woolley reports. “Many newcomers, far less threatening than Apple, have had better luck luring the studios online. A startup named Vudu in Santa Clara, Calif. has deals with all six Hollywood heavyweights and a score of international distributors, in part because it doesn’t try to dictate wholesale prices. (A download of Syriana from Warner Bros. goes for $20.) The studios also let Vudu users rent movies for 24 hours, not an option on Apple TV.”

“Apple struggled over the design of the box itself. Revered for sleek and snazzy products, the company and its man-in-black patriarch made a string of dubious choices about what features to include. And what to leave out. Apple TV comes with a hard drive and a link to the TV set, same as TiVo (now in 4.3 million homes). Yet Jobs decided against offering the ability to record shows,” Woolley reports.

“Other Web TV boxes coming to the market have added far more features. TiVo’s latest box allows not only ad-skipping but now lets a user click a remote to download movies and TV shows from the Internet without leaving the couch; TiVo owners used to have to get up to go to the computer to get a movie for the TV. Since adding this ability in July, movie downloads shot up 50% in a month,” Woolley reports.

Full article here.

[Thanks to MacDailyNews Reader "Patrice" for the heads up.]

While it may be argued that recording/time shifting was never what Apple TV was about – after all, it’s meant to be a wireless link from iTunes to your TV – there are a few things that can be done besides adding DVR capability that would help sales:

• Let iTunes rip DVDs as it can rip CDs for music.
• Let Apple TV users buy TV shows, movies, videos, and music content directly from the iTunes Store; eliminate the need for the computer (Just like the new iPod touch and iPhone can now do with music). Having the computer stuck in the middle of the process is a needless PITA – no matter what kind of computer you use.
• Get the networks and studios to sell more content.
• Offer a monthly subscription plan a la (gulp) cable that lets users watch some amount of programming per month (iTunes Store’s current Season passes sort of accomplish this for individual shows (too expensive for mass appeal, though), but how about subscribing to a network for a monthly rate or maybe selling an hour or blocks of content (ex. 10 hours or even 10 episodes (up to an hour each) or 10 movies per month at reasonable prices)? Unlike music, people tend to watch TV shows and movies once, there is no need to “own” (and have to store) such content (beyond the few special movies people might want to own to watch multiple times).
• Stream live events (including, but not limited to CEO Steve Jobs’ keynotes and special events presentations)
• Upping iTunes Store content to HD (somehow overcoming the time-to-download factor)

Apple TV is good for watching a TV show episode that your DVR missed (which happens fairly often with the various crap DVRs offered by cable providers), watching P2P content of a serialized TV show that some network pulled midseason without notice (cough, Daybreak, cough), showing photos to family and friends, listening to music (if you have it hooked up to some decent speakers), audio and video podcasts, checking out movie trailers, and watching YouTube vids, but it could be so much more.

There’s nothing wrong with Apple TV that software updates and open-minded content providers couldn’t fix.

There are other ideas people have bandied about that range all over the place: from that always-mentioned DVR capability to offering porn (both of which may have the equal chance of never happening). Of course, Apple TV’s big road block remains the content providers, not Apple. We believe that Apple is severely constrained due to content use restrictions and unrealistic pricing demands by TV networks and movie studios.

Let us know if you have other ideas below.

Related articles:
Apple could sell more Apple TVs if they streamed Steve Jobs’ keynotes live – September 05, 2007
Miglia’s VideoExpress offers hardware video converter for Apple TV, iPhone, iPod – August 03, 2007
Repositioning Apple TV: sell it as ‘photo station’ – June 08, 2007
Fortune’s Brent Schlender on Apple TV: Dud or FUD? – June 02, 2007
BusinessWeek: Steve Jobs’ Apple TV ‘hobby’ boosted with improvements, much more to come – June 01, 2007
Deutsche Bank: Apple TV will cannibalize a good chunk of DVD market – June 01, 2007
Apple TV external USB hard drive support enabled via third-party patch – July 30, 2007
AT&T planning IPTV for Apple TV in 2008? – May 31, 2007
Viacom welcomes licensing opportunity for Apple TV – May 31, 2007
Analysts now see Apple TV as catalyst for the company – May 31, 2007
Apple debuts Apple TV with 160GB hard drive, YouTube integration coming mid-June – May 30, 2007
DVDxDV Pro introduces direct export from DVD to Apple TV, iPod, iPhone – May 23, 2007
Elgato releases Turbo.264: USB Stick accelerates iPod and Apple TV exports – May 16, 2007
How Apple’s iTunes Store could deliver High Definition for Apple TV – May 01, 2007
Apple reinvents consumer electronics; iPhone and Apple TV to get better over time with free updates – April 26, 2007
Apple to continually develop new software features for Apple TV, iPhone; offer free updates – April 26, 2007
Houston Chronicle: Apple TV ‘a delightful addition to HDTV setup’ – April 26, 2007
Elgato releases EyeTV 2.4 with Apple TV support – April 18, 2007
Pocket-lint reviews Apple TV: 8 out of 10, iPod for your living room very easy to use, desirable – April 18, 2007
Analyst: iPod sales may hit 500 million, Apple TV emerging as ‘a sleeper hit’ – April 11, 2007
The dam begins to break: MGM films now on iTunes Store; Apple announces over 2 million movies sold – April 11, 2007
Automating BitTorrent downloads on Apple’s Mac OS X is easy – April 10, 2007
Apple TV soon to work with Slingbox, stream iTunes library to mobile devices like iPhone? – April 10, 2007
washingtonpost.com launches high-definition video podcasts via Apple iTunes for Apple TV – April 10, 2007
Laptop Mag reviews Apple TV: ‘The best digital media adapter yet,’ 4.5 out of 5 stars – April 06, 2007
RUMOR: Apple TV team prepping update with new ‘Net-centric features – April 05, 2007
Digit hands-on with Apple TV: ‘simple to set up, a delight to use’ – March 29, 2007
Newsweek: Apple TV has a lot going for it – March 29, 2007
Hacking Apple TV: Joost successfully run on Apple TV – March 28, 2007
Apple TV software hints at future DVR functions? – March 28, 2007
Ten Apple TV myths – March 28, 2007
Ars Technica in-depth review: Apple TV ‘impressed all those who touched it’ – March 27, 2007
Analyst: Apple TV is a platform, not a single product – March 27, 2007
Digital Trends reviews Apple TV: 7 out of 10, ‘huge phenomenon will challenge conventional thinking’ – March 26, 2007
iLounge gives Apple TV a ‘B’ in hands-on review: ‘recommended’ – March 24, 2007
CNET reviews Apple TV: ‘Very Good’ – 7.7 out of 10 – March 24, 2007
Analyst: Apple TV will change the TV business – March 23, 2007
Xvid fully functional on Apple TV – March 23, 2007
Apple TV does not require Widescreen TV or HDTV, works with standard TVs – March 23, 2007
Scoble: ‘Apple TV rocks’ – March 23, 2007
Apple TV hard drive upgrade works – March 23, 2007
PC Magazine review gives Apple TV 4 out of 5 stars – March 22, 2007
NY Times’ Pogue: ‘Apple TV offers a gracious, elegant, effortless, delightful experience’ – March 21, 2007
Mossberg hands-on with Apple TV: ‘beautiful design, easy-to-use, classic Apple: simple and elegant’ – March 21, 2007
Apple TV projected to surpass TiVo, Netflix – March 20, 2007
Apple TV ships – March 20, 2007

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Comment Feed

158 Comments

« Previous 1 … 5 6 7 8 Next »
  1. Anthony

    Saturday, September 15, 2007 - 1:48 pm · Reply

    In my house, none of us are big television/film watchers. I can count on one hand the amount of programs our family watches with any sort of regularity. Perhaps when our TV goes we’ll upgrade to an HD box, but for now it doesn’t make sense.

    Now, that being said, there are one or two programs that we try not to miss, and I either have to set them up to record via DVD-R, DVR, or VHS-R (such a pain), or (and when the programs are offered, this is preferable) buy them off of the iTunes Media Store.

    An AppleTV would be perfect for us, if it supported older televisions. For now, I’m just not sure the expense of buying an HD-TV as well as an Apple TV relates to the amount of viewing we do. Like I said, maybe when our current TV blows out then I’ll get the HD box, but replacing the TV just for the Apple TV seems like a disproportionate expense.

    (I’d rather spend that money on other stuff for the time being)

  2. Dale Sorel

    Saturday, September 15, 2007 - 2:01 pm · Reply

    which happens fairly often with the various crap DVRs offered by cable providers

    Never happens with my TiVo smile

  3. Freddy the Pig

    Saturday, September 15, 2007 - 2:02 pm · Reply

    I do not have an AppleTV for one reason. I have me a miniMac all hooked up to my TV and doing what AppleTV can do and a bit more. Want a true picture of how strong the AppleTV market is you need to count us mini owners who use it as an AppleTV.

  4. Rob Poitras

    Saturday, September 15, 2007 - 2:44 pm · Reply

    I replied to his article on my blog.
    http://3e-lab.com/blog/09/15/biz/not-really-an-iflop-but-close/

    Apple just needs to market the thing more. Think about the marketing budget of the iPhone. Then compare it to the Apple TV. The marketing budget of the Apple TV is not even on the radar.

  5. Swordmaker

    Saturday, September 15, 2007 - 3:06 pm · Reply

    Ballyhooed? I suggest that it was never “ballyhooed” …

  6. Sean

    Saturday, September 15, 2007 - 4:00 pm · Reply

    I completely disagree with this: “• Offer a monthly subscription plan a la (gulp) cable…”
    I am an AppleTV owner and I have used it to replace my Satellite Service. With Satellite I was paying $50+a month to watch. You end up with a whole lot of reruns most of the time so you end up paying to watch things you’ve already paid to watch. I got the AppleTV to get away from the “Subscribe to rewatch shows you’ve already watched” model. Now, though it is costing me a bit upfront I’m looking at long term savings with my AppleTV because I only have to pay to watch a season of a show once and once I’ve got the show I can rewatch it to my heart’s content without having to pay to see it again. That’s the real benefit to getting the AppleTV the freedom to control when what you are paying to watch.

    Still, they need to get HD content in the iTunes store, otherwise the device will never really seem worthwhile to the consumer.

  7. MacGuy

    Saturday, September 15, 2007 - 4:03 pm · Reply

    This writer has no clue…. He doesn’t see the big picture. The market is not ready for this type of technology, but Apple is positioned well and completes the circle of devices.

    Again no clue….

  8. MacGuy

    Saturday, September 15, 2007 - 4:05 pm · Reply

    I do have to say that Steve wanting to dictate pricing to studios is idiotic.

    Remember free market system?

  9. Less is More

    Saturday, September 15, 2007 - 9:43 pm · Reply

    The TV should be a storage leader and be able to play anything my Mac can. As it is, it looks like an extension of iTunes, i.e., made for  and not for me.

  10. J. F. Lawton

    Sunday, September 16, 2007 - 5:29 am · Reply

    Look, Jobs has been downplaying the AppleTV because the major content providers are alreadying scared to death about Apple.

    The AppleTV is a great device and I love it! But Apple hasn’t gone out of it’s way to promote it, or enable it to do everything it clearly can do. This is a Trojan horse. As other internet to TV devices come and go, and fail, Apple is building up a lot of experience and technology and will be ready to go full blast once the time comes.

    Meanwhile they are a little more focused on controling all portable audio, portable video, and now mobile phones. When they are ready, they’ll takeover everyone’s television too.

  11. IONLYUSEOSX

    Sunday, September 16, 2007 - 8:33 am · Reply

    Add an Apple branded USB .mp4 encoding PVR device and AppleTV sales will take off like a rocket. Same device can connect to your Mac as well. A new icon for Front Row (Recordings?)

    An HD capable version is another winner.

  12. P5ycH0

    Sunday, September 16, 2007 - 1:06 pm · Reply

    I use Apple TV to buy all the tv shows on which we normally need to wait a couple of years here in Europe. I achieved that by creating a paypal account with a US address and my own creditcard. Then create an iTunes account with the paypal account.

    Besides that I like to watch video podcasts like diggnation & dl.tv on my 50″ Full HD Plasma set.

  13. Abdullah

    Sunday, September 16, 2007 - 1:24 pm · Reply

    It’s a measure of Apple’s success these days that any product that does not blow the sales roof off is quick to be labelled “flop” by writers such as this.

    Apple is not an idiot company. They’ve shown over and over that they know what to do with almost all their products (the only exception has been the Cube), so if they had wanted Apple TV to have iPod-sized sales, they would have configured it that way.

    Let’s look at the facts. First, you need to have a hi-def TV to use the device. Well, sales of HD sets are growing, but I think still not at a mass market level. These things are relatively expensive and there is simply not enough, affordable HD content to justify the expense for many people.

    You also need a fairly well-equipped, more recent computer, preferably a Mac, to use it effectively. This though is not as big an issue. Still, not too many people who own older computers are going to rush out to replace them just to use the Apple TV.

    But look three, five years down the road, and HDTV is probably going to become the new normal – and when that happens, Apple TV will be ready and waiting to take its place as a mass-market device.

    This one is meant to be a slow burner, a sort of guerrilla product put out there ahead of its time. If it wasn’t, Apple would have promoted the heck out of it. As it is, Apple seems perfectly satisfied with the way it’s going.

    Most of the posts on this thread are from those who already have it, and are perfectly satisfied with it. This positive word-of-mouth seems for now largely sufficient for Apple.

  14. AbdullahInDreamland

    Sunday, September 16, 2007 - 2:07 pm · Reply

    “simply not enough, affordable HD content to justify the expense for many people.”

    What planet are you on, most markets have free over the air HDTV stations, say 20 of them in any major metropolitan area.

    “still not at a mass market level”

    HDTVs cost about $215 for an entry level model, How much further do you want them to drop to be “Mass Market”.

    “Most of the posts on this thread are from those who already have it, and are perfectly satisfied with it”

    Most of the satisfied posts are from dumb fanboys who have never seen a TIVO, Playstation, XBox or Media Center PC.

  15. mike

    Sunday, September 16, 2007 - 3:29 pm · Reply

    I dunno, at the risk of being flamed, I do think that the apple tv suffers from Steve’s hatred of TV. It should have been a DVR, folks, they could have re-invented that whole way of getting content. And say what you will, when I looked at the picture on an HDTV set, it looked crappy. Maybe it’s just me, but I have an HDTV to watch HDTV.

    Perhaps Apple will save the day when they support HDTV downloads and let users download content directly from the box, but the AppleTV as a middleman for content is just irritating. I used my Xbox 360 to get the Heroes premiere in HD, and it looked awesome. Of course, Apple and Universal are fighting, so we won’t be seeing THAT on AppleTV anytime soon.

    AppleTV is due for an upgrade. I fear that Apple is going to hang it out to dry given the relative lack of attention it has been getting.

    anyway, just my opinion.

    -m

  16. Mozfan

    Sunday, September 16, 2007 - 4:19 pm · Reply

    We’ve got an AppleTV in the den and it’s great, we use it almost every day. I’m actually thinking about getting a second one for the bedroom (after the iPhone purchase).

    We don’t have to worry about conflicts in recording shows, just download it from Apple. Plus, all of my Blue October concert videos can go from the computer to the TV.

    Sure some improvements could be made, but as it is, it does what Steve said it would do and it does it well.

    ~M

  17. Whatever

    Sunday, September 16, 2007 - 5:05 pm · Reply

    Wow look at all these comments…. Do you really think that it is a flop? Seems a lot of people sure do like thiers.

  18. tuned

    Sunday, September 16, 2007 - 7:06 pm · Reply

    Wow look at all these comments…. Do you really think that it is a flop? Seems a lot of people sure do like thiers.

    It’s a “flop” simply because it hasn’t been the kind of million-unit blockbuster the world expects from Apple.

    People who have them do love them, but the market appeal IS limited. It’s going to take some work to get AppleTV into the mainstream, where non-HD sets still have the majority and network bandwidth is limited (if available at all).

  19. nothing to watch

    Sunday, September 16, 2007 - 7:18 pm · Reply

    HDTVs cost about $215 for an entry level model, How much further do you want them to drop to be “Mass Market”.

    The problem is an HDTV is discretionary, you don’t NEED to get one to live. The mainstream will adopt HDTV as older units fail, and maybe as an indulgence.

    HDTV is the future, no question. But it’s going to take a while to get the critical mass that can pull HD-only devices like AppleTV into the mainstream as well.

    Too bad none of this changes the fact most of today’s programming sucks, HD or not. Maybe Jobs and Pixar could change that as well…

  20. Brian Bock

    Sunday, September 16, 2007 - 8:19 pm · Reply

    Apple should do a deal with TiVo to make TiVo content playable on AppleTV (and the Mac and iPod). You can now do it with third party software on the Series 2 and soon on Series 3, but it’s not convenient. Apple and TiVo should make it an easy, smooth process. They should also make iTunes DRM content play on TiVo. Also, they should look into a deal with Amazon Unbox. License the DRM to Apple so they can provide content. Other things Apple should do are reform the unit to take normal desktop hard drives so the capacity can be 1TB+. They should provide a much better remote that can control the volume on your TV. They should also either add a composite (RCA) jack or if possible upgrade the software to allow one of the Component jacks to act as a composite connector. Everyone has a TV in their house that can use this jack and not HD. Since music doesn’t benefit from HD, and since most of the existing content on iTunes is SD, why the hell did they require an HDTV? Add composite and people can also buy second AppleTV units for bedrooms where they haven’t upgraded to HD. They obviously need to allow purchases to be purchased from and downloaded to the ATV directly. They should also provide a way to synch your iPod to your AppleTV. They should also let you connect your iPod and play the content from it on the AppleTV. Maybe they should consider a TV version of Safari, along with adding a wireless keyboard, even if it was only enabled on an HD TV. This would create an opportunity for TV Web apps, like looking up movies on IMDB.

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  • Stolen Prey - John Sandford
  • The Innocent - David Baldacci
  • The Amateur - Edward Klein
  • The Last Boyfriend - Nora Roberts
  • The Skinny Rules - Bob Harper & Greg Critser
  • The Lucky One - Nicholas Sparks

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