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 News.com. 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.