Time for Apple to get serious about Apple TV?

“It’s time for Apple to get serious about Apple TV,” Dan Frommer writes for Silicon Alley Insider.

“If Steve Jobs wants to make a serious run at owning our living room’s ‘digital hub,’ then Apple TV needs a serious overhaul, ASAP,” Frommer writes.

“Apple TV is too confined,” Frommer writes. Apple should “add a Safari browser with all the plugins you’d need to watch videos from Hulu, MLBTV, NBC, ABC, Fox, etc., listen to audio from Muxtape, Last.fm, Pandora, and other sites that aren’t too directly competing.”

“In theory, this also means that Apple is eventually inviting iTunes competitors like Netflix or Amazon onto its box, since they offer browser-based video services of their own. But better to have to compete for space on your own platform than have a platform no one uses,” Frommer writes.

Apple should add a Blu-ray player to Apple TV. “An Apple TV with an optional Blu-ray drive could replace the DVD player in every living room. An Apple TV without one is a compromise — there just aren’t enough movies on iTunes to make digital delivery a feasible, primary option today,” Frommer writes.

“That’s it. For now at least — let’s not get ahead of ourselves. AppleTV doesn’t need too many features… It just needs to make our TV-watching experience better, by adding as many video sources as possible, in one nicely designed package,” Frommer writes. “What do you say, Steve?”

Full article here.

Maybe one of those “product transitions” that will “reduce margins” that Apple CFO Oppenheimer talked about during last quarter’s financial earning call is Apple TV? In order to keep Apple TV’s price reasonable and also include a Blu-ray player, margins would have to be cut close.

71 Comments

  1. AppleT.V. will be a real flat panel t.v. with integrated hardware. (my speculation).

    The built in hardware will be just as hobbled and botched by apple as the current apple tv, but it will be a beautiful display so everyone will buy one because hey, everyone wants a flat panel t.v. right?

  2. Once again, I am shocked that no one sees the real problem. Apple TV is useless with out its ability to download content, either as files or as streams. ATT/Comcast/TimeWarner are about to cap everyone’s downloads! That means no more iTunes Video. People will look at their file size, say “Man that’s a 1 gig file, I can’t afford that. at 5 bucks a gigabyte, I can’t afford that.”

    The internet era is about to come to a screeching halt!

  3. Well I have an Apple Tv and I love it but the one thing I do not like is the cost of movies to rent. I will get one or two a week maybe. I also have a Xbox 360 and since they are getting netflix I believe I will have to start using it for movies. The capability for watching Netflix on My Xbox is huge for me. I just wish Apple would have made some kind of deal with them to rent the movies through them and if you wanted to buy it then Apple will sell it to you. The whole Apple controlling the living room is not going to happen anytime soon. Anyone that wants that option will have to have a huge machine to do it. To control my living room it will have to do music(bought & streaming), movies(rented & purchased), TV DVR functionality for every day TV you do not want to own, Gaming with serious titles like Bioshock, and Halo type games as well as family fun games, also browsing the internet casually for weather & movie news/show times.

  4. @ blu-ray

    i do the same thing and it’s exactly why i got my apple TV. it works great for me, (just need to make sure iTunes is running and your vids are in there) I’ve only done it on the latest Handbrake and Leopard, so i don’t know about that comment about tiger. But it’s totally worth it for that. I don’ t even use the internal HD on it.

  5. I bought an AppleTV two weeks ago. Only disappointment is that I have to run it on my 23″ monitor and not my old TV. They would have sold more units if they added S-Video connection.

    But I understand that it is the future and not the past that they are serving. For me, I would have appreciated the following:

    1. Increased drive space 140gb is not enough.
    2. Ability to play other codecs, ie. Divx. Even Microsoft gave up
    on trying to inhibit this in their Xbox.
    3. Open up to external Drive storage, ie. USB.
    4. Lower rentals to 1.99 for 480i/p and 2.99 for hd.
    5. Add more indie movies.
    6. ADD A FREAKING COOLING SYSTEM !!!!! I could fry an
    egg on this thing after an hour. While we’re at it, how about
    an on/off switch?

    I don’t need Blu-Ray. Defeats the purpose of the device. It’s about digitally uploading, not cluttering. I love the itunes binding. It works flawlessly. I also love the streaming capability, but don’t like the fact that it’s only tied to itunes.

    All in all, I love my AppleTV. As for the browser? Well, I actually like the walled garden and feel much safer within it. I don’t think this thing needs a browser. The last thing I need is an infected device.

    Just my 2 cents worth.

    rick.

  6. rickaI bought an AppleTV two weeks ago. Only disappointment is that I have to run it on my 23″ monitor and not my old TV. They would have sold more units if they added S-Video connection.

    Good point. I had to buy an expensive converter to use my ATV with my old 32″ Toshiba until I picked up a newer Samsung with all the inputs. Reminds me I should put it up on eBay now that I don’t need it.

  7. I have an apple tv and I love it. I burn all of my movies with Handbrake and I haven’t bought a DVD since. I also have an hd dvd and ps3. Blu ray is too expensive an most people don’t have an HDTV. The disc are expensive when compared to what people want to pay in- store not amazon for a disc. Apple tv is fine it has more movies now. The rentals need a tiered price with extended viewing and there needs to be cheaper prices for new releases. Digital movies should cost 9.99 not 14.99 there is no packaging or shipping cost and the don’t use man hours to stock them. Let’s get serious on what consumers should pay for packageless media.

    web.me.com/kof4life

  8. Several Things:

    1) Apple TV has to have 1080p resolution
    2) Apple TV has to have DVR capability — especially with the transition to over-the-air digital broadcasting
    3) Apple TV should be bundled with exclusive audio set-ups, like Polk or Bose for an all out digital experience

    Just my $.02

  9. “Physical discs (DVDs, Bluray) are dinosaurs. Stop trying to foist them on my AppleTV.”

    Sure, when your AppleTV actually becomes equal to or better than Blu-Ray.

    “Why in the world you, and a couple of other, think Apple TV needs DVR capabilities that would canibalize sales on iTunes?”

    Because right now those sales are not going to iTunes and never will. People are buying DVRs and recording that stuff in 1080i HD.

    Almost all other machines which are trying to be the digtal hub to more than Apple TV. They are either a DVD/Blu-Ray player, Or they are a DVR or they are both, the usually also stream music and video and some are full PCs. The alternative is the Netflix approach, a single purpose box that is inexpensive to buy with a reasonably priced subscription. Apple TV would sit well in that niche. People would probably pay the small extra premium for Apple vs Roku hardware provided the subscriptions were priced about the same.

    Apple TV sits in an awkward spot. It’s too expensive to buy and to purchase/rent content for compared to the low end boxes.

    But it’s not as powerful and flexible as it’s higher end competitors, and even then it’s more expensive to purchase/rent content for.

    Keeping the current limited feature set, without upgrading the hardware, Apple really only has one option, go the netflix route, keep the box relatively cheap and offer subscription TV shows and movies for one low price.

    If upgrading the hardware Apple has to add either a Blu-Ray player or DVR capability or both to match what it’s more upscale competitors are doing.

  10. To the people clamoring for a TV tuner and DVR in the AppleTV: Don’t you guys already have a TV tuner and DVR? Doesn’t everybody who has an HDTV have those things provided to them by their cable/satellite company? Why should Apple sell a box that does something that people’s cable boxes already do?

  11. Apple doesn’t seem too keen on adding Blu-Ray support for the Mac. I know you can get an external player, like a Lite-On, but what about drivers and players? Does VLC play Blu-Ray? Toast?

    Does the Mac or ATV upconvert a DVD like so many STB DVD players currently do?

  12. I have an AppleTV and love it…it’s hooked up to my tv on HDMI1. But on HDMI2, I have a Mac mini hooked up. Why? Because it does everything the guy in the article says AppleTV should do (except Blu-Ray) — it does safari, hulu, pandora, flash, ichat, bittorrent, limewire, etc. It’s great. With Apple’s awesomely tiny bluetooth keyboard and the bluetooth mighty mouse, it works great from the couch/coffee table. You just have to spend a little time in the OS X settings making everything big enough to read and setting up Spaces so the applications you use don’t overlap each other. The Mac mini is capable of sending a full 1080p signal to your HDTV, all you need is a DVI-to-HDMI cable, which they sell at Best Buy.

  13. 1. AppleTV doesn’t need Blu-Ray. The whole point of AppleTV is that you RENT the movies you want to watch, download them, and you don’t have to buy the movie. Upgrade the graphics to full 1080p and have full HD movie downloads instead.

    2. AppleTV doesn’t need to interface with broadcast TV. Why, so you can get 4 over-the-air channels? If you want more than a handful of channels, you need to subscribe to cable or satellite. So your AppleTV tuner just became useless.

    3. AppleTV doesn’t need a DVR. Cable and satellite providers already provide cheap/free DVR services. So now you’re just duplicating your DVR in AppleTV, because you can’t get more than a few channels without cable or satellite anyway.

    4. Apple doesn’t want you DVRing all your shows because then you don’t rent/buy them from iTunes.

  14. @bizlaw,

    The point of having a DVR in AppleTV would be to replace your crappy cable box. Since Apple would make money off the hardware and via the movie rentals on the backend, they could provide the program guides for free (i.e. no monthy fee at all vs. cable or Tivo).

    Apples DVR patents in this area are amazing. The interface they propose puts even Tivo to shame. I would buy two of them the day they came out.

    If Apple doesn’t put a DVR in it or provide an IPTV solution, AppleTV will always be a “hobby”. iTunes was always supposed to be a “loss-leader” for Apple, so it shouldn’t be considered a barrier to adding these features. If it becomes one, then Apple will stagnate in this market, allowing someone else to win the TV set-top box wars.

  15. I imagine Apple is readying an iPhone-like widget and Appstore. The BluRay option is possible, but not likely until it gets even cheaper. However, I’d like Apple to say that any future BluRay option would be backward compatible to existing AppleTVs using the USB port, so that people wouldn’t hesitate in buying the ATV, now.

  16. Apple should sign a deal with the cable devils the same way they did with the cell phone devil (AT&T;).

    The Apple TV won’t be successful until one of two things happen, either it displaces another box (or boxes) in the home entertainment cabinet, or the media delivery infrastructure that Apple is building becomes dominate enough that the Apple TV becomes a needed product for people. The first option is easier and quicker, the second option is more financially rewarding, and the two aren’t mutually exclusive.

    The Apple TV should come with Blu-Ray as an option.
    The Apple TV should have a Mac OS mode, which then allows adding all kinds of crazy codecs and apps.
    These two points allow the Apple TV to get traction the same way that the iPod did. Imagine how short lived the iPod would’ve been if you didn’t have any other source for music other than the iTunes Store.

    The deal Apple should sign with the cable devils is one where you can get the box from Apple or from your cable company. Comcast for example could migrate all of the on-demand stuff over to the iTunes store. Likewise, the Apple TV should include DVR functionality.

    Lastly, the Apple TV should have an iPod dock. Content should be able to flow both directions. Either from the iPod/iPhone and playable out to the TV, or on an authorized account, from the Apple TV files could be placed on the iPod or iPhone. And of course charge it at the same time.

    Bonus points if Apple can sign deals with studios to allow DVDs and Blu-Ray discs to be ripped to an authorized Apple TV.

    More extra bonus points if Apple can evangelize developers around the Apple TV, especially game developers.

  17. “Upgrade the graphics to full 1080p and have full HD movie downloads instead.”

    Which is fine except today, a postal truck carrying a bunch of Blu-Rays in Netflix envelopes has much higher bandwidth than most people’s network connection. 50GB in 24hrs = ~2GB/Hr x say 3 Blu-Rays = 6GB/Hr download speed equivalent needed would be about 14 megabits/sec sustained transfer rate to download the movies, and that’s just to be able to view them the next day like Netflix. You’ve going to need 2-3 times that bandwidth to stream even one movie at Blu-Ray quality (not some shitty over-compressed “1080p” file. The base AppleTV might hold 1-2 movies. The 160GB model has enough capacity for 5-8, so should be OK. Will full size Blu-Ray quality 1080p HD downloads come? Sure. Next month? No.

    “Why, so you can get 4 over-the-air channels? “

    Only 4 OTA HD channels? Where do you live, dirkadirkastan?

    “Apple doesn’t want you DVRing all your shows because then you don’t rent/buy them from iTunes.”

    That’s more like it. But unfortunately people don’t want to spend hundreds of dollars a month for what they can get for tens of dollars.

  18. A Mac Mini would be a great replacement except there is not fiber optic audio out like on the Apple TV. Those like myself who have spent money on audio equipment would like to use it in surround sound, not simulated stereo surround sound. That is why I don’t have either yet. Apple TV is too limited and the Mac Mini doen’t have the right audio coming out for home theatre.

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