Why Apple TV is critical; investors shouldn’t underestimate its importance

“Apple’s September 9 event, entitled ‘Hey Siri, give us a hint,’ is causing quite a stir,” Daniel Sparks writes for The Motley Fool. “And the list of expected products to be unveiled continues to grow.”

“Ahead of the event, the ever-active rumor mill has narrowed down likely products to see the light of day to a new set of iPhones, new bands for the Apple Watch, an iPad mini 4 and 12.9-inch iPad Pro, and a significantly revamped Apple TV,” Sparks writes. “While all of these announcements would be important ones for the tech giant, the Apple TV may be the most important item for investors to watch.”

“The best part of the new Apple TV will be the alleged App Store to go with it,” Sparks writes. “Apple analyst Horace Dediu recently pointed out that gross Apple App Store billings have surpassed total U.S. box office sales and are set to surpass global box office revenues next year… Investors should take note of how fast App Store sales are growing. Apple’s annual run rate of gross billings, as Dediu explains, in July is up about 50% from the year-ago quarter.”

Read more in the full article here.

MacDailyNews Take: Apple’s going to sell more than a few games and other apps for Apple TV, which is finally almost here!

Why Apple needs so much space for their September 9th event: A series of living rooms? – September 4, 2015
Did Apple pick the right or wrong time to unveil reimagined Apple TV? – September 4, 2015
Apple finally gets serious about pushing into our living rooms with new Apple TV – September 4, 2015
Apple dominates pay TV streaming with 61.9% viewership on Apple devices – September 4, 2015
Analyst: New Apple TV platform is bad news for Netflix – September 3, 2015
The new Apple TV’s potential beyond gaming – September 3, 2015
New Apple TV to offer A8 chip, 8/16GB storage, same ports, no 4K, and new black remote – September 2, 2015
New Apple TV will feature universal search, start at $149 – September 2, 2015
Apple TV 4 to focus on extensive Siri control, deep support for gaming – August 31, 2015
Apple TV 4 coming in October for under $200, Apple TV 3 becomes entry level; both get new streaming service – August 30, 2015
Apple TV said to have motion-sensitive Siri-capable remote with touchpad – August 28, 2015
The next-gen Apple TV’s marquee feature – August 18, 2015


  1. Amazing stats from the ever-insightful Horace Dediu. It caused me to ponder: As US households grow in their ownership of large screen HDTVs (and with adoption of 4K and 5K TVs eventually growing over time, as bandwidth and TV/movie content develop to fulfill their promise), what does that mean for movie theaters?

    Much as I like going out to the movies, it’s not cheap, often crowded, and frankly, a pain in the butt-tocks. If I can have a better experience in my living room with a good HDTV with any movie I want delivered by an Apple TV, why bother going out? I can make good popcorn too.

    And that led me to wonder when, not if, Apple will be able to negotiate presenting new movies as they are issued, rather than have to wait several months before a blackout period ends.

    Does the combination of evolving TV and Apple TV technology mean that movie theaters as we know them are vulnerable to disruption? It’s certainly worth a debate.

    Okay, boys and girls. It’s your turn. What do you think?

    1. I think people like to get out every once in a while to socialize and be seen. Not everyone wants to sit home all the time. People usually want to see first run movies at the theater. If I were younger I’d head to the theater to see the new Star Wars movie as soon as possible. I wouldn’t waste time watching a theater cam copy at home. I happen to think theaters aren’t going anywhere. They’re fine places to take dates and prove you aren’t a total cheapskate.

      I think Apple can leverage a lot more than other companies can because of its financial clout but I’m not sure Apple wants to be taken advantage of. The content creators will probably think they can put the squeeze on Apple because there’s so much money to be had. Wasn’t it rumored Apple wanted to keep the price low on streaming video content but the content creators didn’t go for it?

      1. But surely cinemas have been disrupted for years. Do we forget that 20/30 years ago they had been as good as written off and certainly this side of the pond had been closing in their droves. They were saved by multiplex cinemas and a massive upgrade to the technology, service and marketing of the product. But their popularity has still been a somewhat edgy experience sitting one side or other of the curve and always under the threat of being forced back into decline by new developments and changing social preferences.
        Personally I rarely visit one now too much of a hassle and quite annoying at times depending on the clientele, but for certain releases like Star Wars, Bond or big action pics you can’t beat the power of the experience overall. However if the experience of these type of films can be at least partially replicated by home technology for a large section of the public it certainly will have implications for the cinema and that my again push the balance of their profitability in the wrong direction. It could even drop over a cliff in the worst case scenario though I think that unlikely short term.

  2. Investors will see AppleTV as just another streaming box and will yawn. Apple’s share price will drop yet further. Investors realize that Apple is the iPhone company and hardly anything else matters to them. People keep talking about stuff Apple is doing will excite investors but it never happens. Apple may introduce three products for this event but each product will be seen to have some critical flaw that will work against Apple. It never fails to happen.

    Any talk of Apple going up against Netflix will be seen as laughable because Wall Street thinks Netflix can’t have any challengers. It doesn’t make much sense but Netflix target prices continue to rise. Netflix has almost no subscriber moat whatsoever because one-month subscriptions can be quickly dropped. Where’s the lock-in to Netflix? There isn’t any. I would think Apple could easily afford to take down Netflix but no one else thinks that way. How hard would it be for Apple to make content deals? Not hard at all especially if they could guarantee lots of eyeballs.

    1. Or worse yet three products will be presented, but only one of them will be fairly close to you. I’m getting tired of their previews even when I don’t end up buying them. They need to just shut up and get to work.

  3. “Any talk of Apple going up against Netflix will be seen as laughable because Wall Street thinks Netflix can’t have any challengers.”

    Just like everyone claimed Apple couldn’t challenge in the MP3 player space? And the smartphone space? And the tablet space?

    Those blinders you wear must be really comfortable…

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