Originally Posted by hillstones
As a hobby, Apple can build them cheaply and not have any reason to update them. Since they are probably so cheap to make, they can have it hang around for awhile, even though it does lousy in sales. Typically, a lousy selling product would be dead in a year (G4 Cube), but since this is such a cheap device, they probably don't lose any money on it.
It will never have an optical drive, nor will it ever be a DVR. The AppleTV's sole purpose is to lure the customer into iTunes sales. Apple won't make money off cable subscriptions, DVD/Blu-Ray, or NetFlix streaming. Apple won't build a box to support that. They are in it to make money, nothing more.
Since iTunes will never have live TV, you won't see many people dumping Satellite or Cable anytime soon for an AppleTV box. Live Sports anyone? Not on iTunes or AppleTV.
It is a dying hobby and Apple should just put the AppleTV to death. I would rather buy a DVD or Blu-Ray disc for the better quality and better content than anything on iTunes. Never purchased any iTunes TV or Movie content, and don't ever plan to.
I generally agree with you right up til the end there. I think it is mainly being used by early adopters now, but I don't think it's dying. I don't think it's specifically designed to replace cable or live tv, although it could for some people
. Most people can get live HD sports over-the-air for example, but if you are really a big sports fanatic, you would want directtv or cable for their sports packages. I think the main thing stopping me from cancelling my cable is the cost. Movie rentals are pretty much the same as cable on-demand prices, but season passes for tv shows are pretty expensive. No commercials is definitely worth something, but if you watch 3 or 4 tv shows regularly, it very quickly becomes more expensive than cable or satellite.
I may be missing the point, but I think once all the content deals are worked out, the quality is up to par, they get the pricing right, and big, network attached storage and backup at home is a no-brainer for the average user, then who would want to go to blockbuster to rent, best buy to buy, or even netflix for rentals, when you can get it immediately without leaving the couch.
For me at least, the jury is still out on whether the Apple TV will replace cable, but I would hate to see it die with so much potential, and I don't think it will die because digital distribution over the internet is the logical way things will and should go.