Apple TV concept may eventually catch on with consumers

Apple Store“Lost in all the hoopla over the iPhone at Macworld was Apple TV, sort of a cross between a Mac Mini, a wireless router, and a set-top box, which couch potatoes can use to connect a big-screen television with a Mac or PC,” Tom Krazit reports for CNET News.

“Apple’s intentions seem clear: It wants to be the company that finally figures out how to tie the television to the Internet and make video downloads as common as music downloads,” Krazit reports.

Krazit reports, “Rather than trying to convince people to buy a whole new PC for the living room, Apple is pitching a $299 price tag and promoting the hundreds of TV shows and movies on the iTunes Store. But, at least in its first incarnation, it’s unlikely that Apple TV will disrupt the entrenched players in the living room, according to analysts… ‘I don’t see where people are going to be willing to give up their pay TV subscription and go to the Internet for programming’ anytime soon, said Michelle Abraham, an analyst with In-Stat.”

“More and more people are setting up wireless networks in their homes, but configuring those wireless networks to handle video has been a more difficult exercise… This is where analysts believe Apple might have an edge. “One of Apple’s strengths is ease of use with elegant solutions,” said Chris Crotty, an analyst with iSuppli,” Krazit reports.

“For instance, you could think of Apple TV as a replacement for a DVD player, said Chris Whitmore, an analyst with Deutsche Bank. This was the analogy Apple used in its press release announcing Apple TV. Instead of heading out to Blockbuster or renting movies through the mail with Netflix, just press a button in iTunes and download the movie,” Krazit reports. “Apple has an established model in the iTunes Store for delivering content. And in Apple TV, it has a cool-looking device that could be easy to use: the same formula that made the iPod a success, Crotty said.

Full article here.

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PC Magazine: Why Apple TV matters – February 23, 2007
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Deutsche Bank: Apple TV could take 30% of set-top box market within a few years – February 21, 2007
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ZDNet’s Graham: Apple TV hits a number of sweet spots, poised to make a big impact – January 25, 2007
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RUMOR: Apple TV sales blowing away Apple’s internal expectations – January 25, 2007
Steve Jobs: Apple TV is the ‘DVD player for the 21st century’ – January 22, 2007
Apple TV beats out iPod, hits top spot on Apple Store sales chart – January 19, 2007
Report: first batch of 100,000 Apple TVs to ship this month – January 11, 2007
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RUMOR: Apple may enter video game market – December 05, 2006
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19 Comments

  1. @Less is more;

    Most DVD players are region-restricted, even those installed in media PCs. wWhat’s your point? Try Handbrake and see if that will help.

    …and you can download the divx plugin for Quicktime, and both Quicktime and iTunes will play divx formatted content.

  2. The Apple TV doesn’t make sense with out rentals. Think about it.

    With Apple TV I have to pay $10-$15 per video that I get to keep forever, but will probably only watch once.

    With my BLockbuster Subscription for that same $15 I get 2 movies sent to me by mail and then get to take those back to my neighborhood store for more any time I like. And I get much better quality, with true wide screen. Maybe I’m odd, but I don’t normally watch my DVD’s over and over again. I’m not a little kid anymore watching ‘The Lion King’. Only watching them once doesn’t bother me. If I want to see them again, no big deal, I’ll just toss them on my Q and wait a week, or go down to the local chain and pick it up.

    Movies are very different than Music. I’m surprised that Steve Jobs doesn’t see this.

  3. ‘I don’t see where people are going to be willing to give up their pay TV subscription and go to the Internet for programming’ anytime soon’

    You can count me in. Almost all the programing on TV is utter crap anyway. The only show I watch with any regularity is The Daily Show, and that will cost me a lot less to buy on iTunes than my cable subscription.

  4. rahrens: The AppleTV is not the player – it is designed to receive streamed content from your Mac. If the Mac can play it, the AppleTV will be able to show it.

    I don’t think so.. if iTunes can play it, not if the Mac can play it. There are lots of formats iTunes doesn’t support, most notably Windows Media (some) and DVD discs.

  5. Is AppleTV restricted to H.264 or can it do divx/avi as well? From what I have read so far, it seems only the former but FrontRow supports divx/avi which gives me hope that so too will AppleTV.

    Any solid info would be greatly helpful! ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

  6. “For instance, you could think of Apple TV as a replacement for a DVD player, said Chris Whitmore, an analyst with Deutsche Bank. This was the analogy Apple used in its press release announcing Apple TV. Instead of heading out to Blockbuster or renting movies through the mail with Netflix, just press a button in iTunes and download the movie,”

    This is not a good comparison when All you can do is buy content on iTunes

    There’s very few movies I want to own. I’d much rather rent them. I finally got a Netflix account and it’s pretty convenient. I hope Apple adds rental capability to iTunes/AppleTV.

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