Analyst: Major Apple TV update coming soon; Apple to debut ‘connected television’ in 2011

“Gene Munster, senior research analyst with Piper Jaffray, said in a note Thursday that he believes a new Apple TV will arrive in the next several months. Beyond that, he believes the company will launch a ‘connected television’ in 2011,” Slash Lane reports for AppleInsider. “Munster suggests a new Apple TV would bolster iTunes video purchases with a subscription model.”

“‘Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub-library of its TV shows for a standard monthly fee ($30 or $40 per month),’ Munster writes. ‘Such a product would effectively replace a consumer’s monthly cable bill (~$85/month) and offer access to current and older episodes of select shows on select channels,'” Lane reports.

“Munster goes on to say that he believes the timing could be impacted by the negotiations Apple would need to conduct in order to have the rights to offer a subscription model,” Lane reports. “However, he predicts that when a deal is finalized, Apple would simultaneously release the offering with a new Apple TV, or updated Apple TV software, within the next year.”

Lane reports, “As for the [“connected television”], Munster believes that is a long-term goal for the company, within the next two to five years. He suggests such a device would have DVDR and home media center functionality built in to the set. Recorded shows, he predicts, could sync with other Apple devices, like Macs, iPhones and iPods, all wirelessly.”

More info in the full article here.

MacDailyNews Note: Apple now has sold several million Apple TV units and we expect that if the company rolls out a subscription option, it would not orphan existing Apple TVs which, so far, have only continued to get better and better over time for free.

33 Comments

  1. Apple should make

    1. a home media center
    2. a better universal remote control
    3. home automation system
    4. security system
    5. energy monitoring and control system
    6. robot control system
    7. communications system
    8. a bunch of other stuff improving the mediocre garbage out there now

  2. I would dump by expensive Satellite service in a heartbeat for an Apple solution — but only if Apple gets off the stick and starts retransmitting closed caption information. About 10 percent of the population has hearing loss (including my wife, who’s late-deafened), and another 10 percent uses captions in quiet or noisy environments (offices, gyms, bars) or to help learn English.

    That Apple isn’t leading the way on closed captioning the Apple TV programming is not only sad, it’s a bad business decision. They’re effectively giving up 20% of the market because they don’t want to bother with a few sections of software code. I just don’t get it.

    MDN Magic Word: provided. As in, if Apple TV provided captioning information, I’d be a customer today!

  3. Would have to include a streaming option for live events like sporting events, live news, for most people to dump their current cable or dish service.

    Perhaps this is what that new supermega data center will be doing in the cloud?

  4. I want “a la carte” TV! Pick and choose ONLY the TV programs I want to see (and pay for).

    I’ve been hoping cable or satellite would bring it soon, but alas, maybe Apple will dominate THIS area as well.

  5. Here Comes Apple “The Consumer Electronics Manufacturer” with an Apple TV, this will be another new standard that Apple sets.

    When Steve Jobs announced Apple new designation as a consume electronics manufacturer to the world, he talked about his admiration for Sony products and the inspiration he got from it’s glorious past…

  6. It would make sense to do this before the holidays. A great gift for the family. My guess is that it will be “one more thing” at the iPod event in September. The annual September event will now need to be based on entertainment and not just iPods. January is for Mac computers, June the iPhone, September is entertainment, etc. The big question: where does the tablet fit it?!?!

  7. Apple is slowly working on the Apple TV. It’s a type of product that requires user feedback and input to make it a standout product. Video Podcasts are growing and starting to challenge some mainstream media outlets. Once the recession starts to ease a bit more I’d predict that the number will increase along with sponsor ad dollars.

  8. The thought of subscribing to TV cable channels like Comedy Central, SciFi, HBO, etc. thru Apple and iTunes rather than the cable company just about makes me soil my chair. No more paying a monthly fee for every stinkin’ cable box connected to my 3 TVs along with the exorbitant monthly fees the cable company charge for their “service.”

    Make it so Apple. Pleaseeeeeeee.

  9. For years now I’ve been hoping Apple would turn it’s attention to an “in-dash iPod”. Now that the iPhone / iPod Touch platform has been established, I expect they’ll do something. It makes so much more sense now. Especially with GPS.

    Every night I park my car within WiFi range. I’d love to have my music sync automatically with my car. I never seem to think of syncing my iPod.

  10. “Subscription” and “Apple” make sense, in this context. Unlike music, people generally only watch TV show episodes one time. They have no desire to own it forever, taking up space on the hard drive. And for those rare “so good I must own it” episodes, they can go buy it for $1.99 each (or whatever it costs) or buy the season. Seems like a perfect combination to beat the cable companies, and help lower their monthly rates.

    But I can see how negotiations for such a service would be very difficult. The cable providers and cable networks are entrenched, and probably do not desire any change.

  11. Netflix’s subscription model works well. I’ve been watching Lost in HD on the streamed service and the results are fantastic using a Netflix capable BluRay player.

    The only problem for Netflix is how to make money. In Q2 they had 11M subscribers and a $30M net income from revenue of $300M.

    Apple could have a similar set up (streaming only) but also sell the hardware which is where the money is. The Apple TV doesn’t quite cut it because you either have to buy or rent the movies. The streaming option is far easier to use and is cheaper in the long run for the end user.

  12. i’ve always thought Apple should buy TiVo and add its DVR service to AppleTV, but eliminate the TiVo subscription payments which are what holds TiVo back from greater popularity. it’s not that Apple can’t create the same functional software on its own for AppleTV. it’s that Apple would get hold of the crucial TiVo DVR patents and resulting favorable CATV access deals that there is no other way to duplicate. on its own TiVo is too costly and offers little that the cable companies don’t match, so it can never grow much, but incorporated inexpensively within the much larger Apple iTunes ecosystem it would really boom.

  13. Folks, it’s really not that hard to dump your cable. I’ve been cable free now for over a year and really haven’t missed it one bit. Between Apple TV, Hulu and my NetFlix subscription, I’ve been pretty content. Oh, and I bought a $26 HD antenna for my HDTV which manages to pick up just about every major local network in my market – including live sporting events. True, if I want to see games on ESPN I need to go to my local corner sports bar, but honestly, through time, you’ll learn to live without it. Seriously, hundreds of channels, DVRs, etc., are not life or death necessities. While they may be hard to give up at first, it’s not impossible. It just depends on your priorities. I for one was happy to boot Comcast to the door. Now if Apple would only deploy their own ISP so I can get their content without worrying about these silly bandwidth issues, that would be truly something.

  14. The problem with getting rid of cable or FiOS for Apple TV is that you need the high speed network to make it work. Of course you can pay for just the internet connection but you will pay through the nose. I don’t think DSL could deliver enough bandwidth for a subscription service.

    I have an Apple TV and love it. It is a iPod for the TV, nothing more. (OK a good hot plate) It is great for playing music, movies and showing off my pictures. Yes it could use some upgrading to the UI and have volume control, but the thing is great. Apple should have called it iPod TV, then people would understand it.

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