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Apple TV: will it revolutionize industry?

updated 11:30 am EDT, Mon March 12, 2007

Apple TV outcome uncertain

Apple hopes its new set top box that streams iTunes content wirelessly from a personal computer to a TV will appeal to the masses when it ships in the near future, but some analysts argue that the device is simply another iteration of similar failed products. "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 [any time soon]," said In-Stat analyst Michelle Abraham. Companies such as Akimbo and MovieBeam enabled consumers to receive content over the internet, but failed to achieve massive success as a result of complicated pricing and a lack of desirable content, according to Apple, however, is likely banking on the Apple TV's ease of use and setup, coupled with its large content offerings from the iTunes Store and steady pricing structure to entice consumers into its own camp.

"To me, one of the biggest issues as far as making the Internet your main source of entertainment is that it's something the consumer needs to hook up and network themselves," Abraham said, adding that more and more consumers are setting up wireless networks in their homes. Configuring those wireless networks to handle video, however, is proving a more difficult endeavor, according to Abraham.

"One of Apple's strengths is ease of use with elegant solutions," said iSuppli analyst Chris Crotty. Apple must ease the tedious process that early adopters of wireless home-media networks have had to endure if it wants Apple TV to catch on to a large audience, according to the report.

by MacNN Staff




  1. scottnichol

    Joined: Dec 1969


    already have

    i already have given up my paid subscription to cable/satellite TV. i currently use my MacBook Pro to watch most TV programming and will replace that with an A-TV unit once they start shipping.

    i watch the shows i want, when its convenient for me. $35/season for a couple show is a fraction of what i was paying for cable.

    works for me!

  1. fishtech

    Joined: Dec 1969


    Same here...

    I only watch pay-pre-view downlaods these days.

    And maybe one day these dumb analysts will realize Apple's not-so-secret to success in emerging spaces is software & interface rather thardware & content.

  1. horvatic

    Joined: Dec 1969


    Apple TV not released yet

    How can you judge the success on an unreleased product. Or at least a product that has not shipped yet. This is a non-story until Apple TV ships and people start actually using it. Until then you can theorize about if or maybe about it's success until you're blue in the face. This seems to be a popular subject regarding the iPhone too which is totally rediculous since it hasn't been released for sale yet even.

  1. Paul Huang

    Joined: Dec 1969


    release date is uncertain

    The one thing that is uncertain is the release date of AppleTV; nothing else.

  1. bobolicious

    Joined: Dec 1969


    Removing advertising... roughly 20 minutes per hour of 'free' programming easily covers the opportunity costs - and you keep the programming... Triple net win for the consumer...

  1. bfalchuk

    Joined: Dec 1969


    Flawed thought

    This analyst is banking on her feelings, not customer actions. She also thinks that set up will be too hard for people. Once a wireless network is set up, adding video is not a painful process. The key is that you'll need to be using Airport, I believe, so it will all be easy-peasy-lemon-squeezy.

    It's basically an uninformed opinion. She's entitled to it, but, like so many Apple haters, she's uninformed.

    Look at the iPod. Read all of the press reaction early on. They all predicted its failure - "me too" product, consumers won't want to listen to music this way, other attempts failed, etc, etc, etc. Same was said of the music store.

  1. vasic

    Joined: Dec 1969



    A number of people on these forums frequently get annoyed when a story pops up about a yet-to-be-released product, such as Apple-TV now (or the iPhone). They imply (or state outright) that it is stupid (or 'rediculous' - their spelling, not mine) to predict success, or even state an opinion, about these devices, before they are released.

    Well, there are two groups here, and both of them are valid. One is called reporters, the other, analysts. Reporters tend to report about things that have happened. On the other hand, analysts tend to look at the current situation, analyse trends, past history, market space, consumer sentiment and predict what will happen in the future. There are many people in this world who make very, very good living making these predictions. There are yet other people in this world making also very, very good living by using information from these predictions. In all cases, these predictions are neither ridiculous, nor stupid.

    Same goes for opinions above. They are obviously based on personal experiences and knowledge of people rendering them. And if they are results of some thinking process, rather than desire for flamebaiting, then they aren't stupid (or 'rediculous') either.

    For what it's worth, my opinion is in line with most other (professional) analysts, that both Apple TV, as well as iPhone are going to kill competition and rake in billions of $$ for Apple. I won't elaborate, as this has been beaten to death. Let's revisit in 4 months, after the release of both products.

  1. Paul Huang

    Joined: Dec 1969


    $100+ for cable service

    How much TV can a person watch? Certainly not $100 worth each month. I was shocked to find that people actually pay $2,000 annually for cable service.

    AppleTV may change the landscape one way or another. We shall see.

  1. ronjamin

    Joined: Dec 1969


    Cable/Satellite is DEAD

    With the exception of Live programming, Cable and satellite is dead, or will have to severely change its business model after Apple's juggernaught is through gutting this moribund industry.

    I mentioned elsewhere that I have had nothing but problems with Comcast. I pay for programming, yet when I come home late from work or am up early on Sunday, I get inundated with INFOMERCIALS on channels like Discovery, History, etc.

    I would rather pick what I want and watch it. Apple iTunes and iTV lets me get what I want when I want it. No longer am I forced to pay for "The Home Shopping Network", or other channels I don't want. Frankly, Im not a sports fan, so I would rather not have ESPN. But I really miss SciFi on basic cable, so why can't I just pick and choose? Cable has the technology to do this, they just refuse to implement it on a broad based scale.

    So, when the iTV comes out, the likelihood is that Ill get one, and chop off my Comcast cable.

    Buh-bye Comcast, hello iTunes Store.

  1. coldfusion1970

    Joined: Dec 1969


    Rest of the world ...

    Well this means nothing to those of us outside the USofA as we dont have any TV shows on the ITMS to watch :-(

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