Apple expected to push for greater living room presence
A new market analysis predicts that an update or overhaul to the Apple TV could arrive soon, perhaps with iTunes TV show subscriptions and DVR capabilities.
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.
Munster suggests a new Apple TV would bolster iTunes video purchases with a subscription model. He cites the popularity of Hulu and Netflix Watch Instantly as a reason Apple should offer iTunes video subscriptions.
"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."
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. 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.
He predicts that Apple will become more aggressive in the living room, citing a number of factors, including:
Apple executive Tim Cook said on a recent earnings call that the company would "continue to invest" in the Apple TV.
Patents the Cupertino, Calif., company has filed regarding TV recording.
A five-year, $500 million agreement with LG Electronics for supply of LCD screens.
An upgraded Apple TV with subscription capabilities, the analyst says, could access the device's untapped potential.
As for the "Apple 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.
"The device would push apple further into the digital living room with interactive TV, music, movie and gaming features (with the iPhone or iPod touch as a game controller)," Munster states. "Such a device would command a premium among the competitive field of budget TVs."
Munster acknowledges that TV hardware is a "challenging business," but the analyst expects that Apple would "change the rules of the game," as it has done in the phone market.
Piper Jaffray has said before that it expects Apple to offer both a connected television, and Apple TV with DVR. A similar report was issued earlier this year, though Thursday's new analysis provides more recent examples to justify the prediction.
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.
Munster suggests a new Apple TV would bolster iTunes video purchases with a subscription model. He cites the popularity of Hulu and Netflix Watch Instantly as a reason Apple should offer iTunes video subscriptions.
"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."
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. 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.
He predicts that Apple will become more aggressive in the living room, citing a number of factors, including:
Apple executive Tim Cook said on a recent earnings call that the company would "continue to invest" in the Apple TV.
Patents the Cupertino, Calif., company has filed regarding TV recording.
A five-year, $500 million agreement with LG Electronics for supply of LCD screens.
An upgraded Apple TV with subscription capabilities, the analyst says, could access the device's untapped potential.
As for the "Apple 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.
"The device would push apple further into the digital living room with interactive TV, music, movie and gaming features (with the iPhone or iPod touch as a game controller)," Munster states. "Such a device would command a premium among the competitive field of budget TVs."
Munster acknowledges that TV hardware is a "challenging business," but the analyst expects that Apple would "change the rules of the game," as it has done in the phone market.
Piper Jaffray has said before that it expects Apple to offer both a connected television, and Apple TV with DVR. A similar report was issued earlier this year, though Thursday's new analysis provides more recent examples to justify the prediction.
Comments
i've bought a few PC games on Steam and that's the way it works. you can download anything you bought anytime on as many computers as you want
and the x-box and PS3 both offer more features than the Apple TV for less money
An upgraded Apple TV with subscription capabilities, the analyst says, could access the device's untapped potential.
If by "subscription capabilities" he means "downloadable porn", I would have to agree.
Add DVR functionality at the current price point, and I'm sold.
Add a BluRay player, and I could consolidate all of my living room electronics into this plus an amplifier. Although right now my Mac Mini (sans BluRay capabilities) is a fair substitute.
Sounds cool, but I think the problem we are going to have here is the cable companies comcasts, cox, etc are going to have an issue with people pulling all their TV service off of their high speed internet connection. Especially when these people start canceling their cable. Expect comcast to fire back with lower monthly download caps unless you subscribe to their cable tv service.
actually the two are basically using the same bandwidth. and Comcast among others offers a discount when you have both services. so what you will see is a rate increase and then when someone cuts cable they lose that $10-15 a month discount. which helps to make up the diff
right now the issue is probably more exclusive contracts with places like Hulu and Netflix which will bare other companies from doing a streaming service. the same as on air rights force said companies and even Itunes from dropping some shows and movies for periods of time
Sounds cool, but I think the problem we are going to have here is the cable companies comcasts, cox, etc are going to have an issue with people pulling all their TV service off of their high speed internet connection. Especially when these people start canceling their cable. Expect comcast to fire back with lower monthly download caps unless you subscribe to their cable tv service.
Well... the cable companies are going to get what they deserve. They tie up cablecard FOREVER... just so they can tell you to use THEIR box?
Dumb, dumb, dumb...
Did they really think they were going to own the box forever? If they had just worked with companies like Apple and allowed us to use a two-way card in any device we wanted... I'd sure be a lot more likely to stay with cable than I am now.
Idiots... What did controlling the box really do for them other than piss people off?
Sounds cool, but I think the problem we are going to have here is the cable companies comcasts, cox, etc are going to have an issue with people pulling all their TV service off of their high speed internet connection. Especially when these people start canceling their cable. Expect comcast to fire back with lower monthly download caps unless you subscribe to their cable tv service.
the TV runs on a different frequency than the internet. i already have a time warner DVR that i pay $10 a month for that includes HD recording. my wife has been bugging me for a new DVD player because the one we have has terrible colors. looking to replace it with a PS3. if the mini gets a blu-ray drive next month or early 2010 i'll put it on the list
unless the Apple TV gets a big overhaul or some new device comes out at a reasonable price point i'm not going with apple
effectively replace a consumer's monthly cable bill
I get my high speed internet from the cable service.
I don't get the part about
I get my high speed internet from the cable service.
it's talking about cable tv. You could replace that bill. You don't have to have cable tv to have cable internet. I've never had cable tv but i've had cable internet for years.
I get my high speed internet from the cable service.
I think 'monthly cable bill' is short-hand for cable television bill, or at least that component of the bill. Yeah, the terminology has gotten mixed lately.
Edit: clarified in previous post.
Also, up to this point I haven't seen a reason for Apple TV - it seems like an experiment not a value-delivering product.
I have been putting off the purchase of an Apple TV for about 6 months awaiting a hardware refresh, come on Apple hurry up!
Me too!