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Apple TV to take 32% of "Connected TV Player" market this year

post #1 of 117
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While consistently branded as being a "hobby" for Apple, sales of its $99 Apple TV set top box had made it the most popular device in the category, predicted to sell nearly 4 million of the the nearly 12 million TV boxes in the market.

A report by Strategy Analytics, Apple is the leading set top TV box vendor, ahead of dedicated TV box systems from Boxee, Iomega and Roku, TV box products by hard drive vendors Western Digital and Seagate, and Android-based Google TV licensees Sony and Logitech.

Apple is leading this nascent market, which it still considers a hobby. says Jia Wu, Strategy Analytics' Senior Analyst of the Connected Home Devices (CHD) service.

The marketing firm noted that only 8 percent of US households currently own a "connected TV" player, but of that population, 32 percent have chosen Apple's model. Additionally, among connected TV users, more Apple users were actually paying for TV and movies. The firm found that 30 percent of Apple TV owners paid to rent movies or TV shows, compared to just 20 percent of users of other devices.



As Apple prepares for its expected launch of smart TVs in 2012, rival platforms must accelerate their development plans to keep Apple from running away with the connected TV business, as it has done in smartphones and digital music, the analyst stated, reiterating speculation that Apple is poised to enter the HDTV market, rather than continuing to build a low cost, small external iOS device that can work with any TV set.

At the same time, the firm acknowledged that Apple, along with Roku, has found success in the difficult market by offering a TV device at a much lower price point that has "made them more affordable and compelling to consumers."

Apple slashed the price of Apple TV from the original $229 entry level device of the first generation unit to just $99 by focusing on streaming content from cloud services (including iTunes own and Netflix) and from users' own PC content libraries, rather than hard drive playback of locally stored content on the device itself.

Is AirPlay a killer app?

Apple has also differentiated Apple TV by introducing AirPlay as a feature from both iTunes equipped Macs and PCs, as well as mobile iOS devices such as the iPhone, iPod touch and iPad. Without AirPlay, other smartphones and tablets require a much less convenient external HDMI cable connection, if they support external video at all.

Many popular Android smartphones lack any support for video output, and low cost tablets such as the Amazon Kindle Fire and Barnes & Noble Nook Color similarly lack the capability for wired or wireless video output to an HDTV. Standard Android devices can stream to Apple TV using third party apps, such as doubleTwist and its AirSync feature.

In addition to dedicated TV box devices, Apple TV also competes against game consoles with cloud services and media stores, including Microsoft's very popular Xbox 360 and Sony's rival PlayStation 3. Those devices weren't profiled in the report as "connected TV" devices, despite their large installed base of users. While Apple TV and its AirPlay mirroring capabilities with iPad 2 and iPhone 4S have revealed new potential for iOS games that take over the living room, Apple hasn't pushed the device as a gaming system in the same way that it has the portable iPod touch.

Apple's TV box, introduced alongside the original iPhone back in 2007, was also challenged by the Android-powered Google TV initiative launched in the summer of 2010. However, Google TV has failed miserably over the past year and a half.
post #2 of 117
I need another one but can't decide if I should wait for v.3.
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post #3 of 117
I wasn't sure about the usefulness AppleTV at first, but with the extra Airplay features on my iPad2 in iOS 5 I took the plunge and bought one a few months ago.

While I use it a lot for airplay and youtube / vimeo on a big screen, it's gained far more use since I jailbroke it (seas0npass) and installed xbmc on it...

Now it does all the fun things apple supplied with it but it will also stream all my divx ripped dvds off my NAS over UPNP too... I used to have to use my PS3 for streaming but the apple tv is far easier, uses less power and doesn't have a dirty great fan in it making a racket while it's on.
post #4 of 117
I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?
post #5 of 117
The main thing Apple TV is missing is apps. No, I'm not talking about facebook or angry birds. I'm talking about apps that serve up video content. Obviously, Hulu comes to mind, but once the app floodgates are open, some pretty marvelous things could follow. Instead of paying $60 a month for 500 channels that I don't watch on cable just so I can have three or four that I DO watch, I'd rather pay a few bucks a month for a Comedy Central app so I could watch the Daily Show and Colbert. Or how about $10 a month for an NFL app that serves up live games? I realize those kinds of options are a few years away, but Apple could really get the ball rolling by opening up an Apple TV app store.
post #6 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?

I have no interest in gaming or the monthly service fee Microsoft requires for the similar services. Plus, last time I checked the xBox and PS3 units aren't really good at Airplay functions or integrating with my Apple ecosystem. Add to that the cost of the xBox or PS3 systems and I'm more than happy with my AppleTV, its simplicity, and the UI.
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post #7 of 117
Quote:
Originally Posted by 2oh1 View Post

The main thing Apple TV is missing is apps.

I couldn't agree more.... I'd love to see the iPlayer and 4OD (etc) apps on Apple TV and it seems the ideal place for them to be.
post #8 of 117
Looks like $99 buys a lot of whining.
post #9 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?

Well the apple tv is $99. In addition, many people aren't "hard core" gamers to justify getting a game console. You can't play bluray on the 360 either.
post #10 of 117
Me want hobby like this!
post #11 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?

Don't you know better that to bring up Blu Ray to this crowd? Steve (rip) said no to blu ray a while back so that makes it the enemy.

Like flash on iOS.
Like matte screens.
Like USB 3.0 and camera card slots.
Like intel chips. Well, the fan base kinda caved on that one.

According to Apple you don't need physical media. "but what about home movies.". You ask? How do you share them with you're family in hi def quality? Simple. Use the MobileMe web gallery. But you had better hurry. You only have a few months left before they kill that too.
post #12 of 117
Quote:
Originally Posted by DaveMcM76 View Post

I couldn't agree more.... I'd love to see the iPlayer and 4OD (etc) apps on Apple TV and it seems the ideal place for them to be.

Air Video would make it the greatest device for serving content ever invented.
I can use Air Video to stream movies from my iDevice, but would be great if i could eliminate the need for the the iDevice.....
post #13 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?

For Airplay!
post #14 of 117
Looking at the Roku XS instead for the Amazon video.

The thing is a Wi-Fi BR player isn't much more money than a aTV or Roku. Call it $50 more.

That's not a lot of money and you can play BR.
post #15 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?

It's not a PS3 or an xbox. It's a totally different product at a different price point. The AppleTV is not an essential product to say the least, but it's a very cool, useful one. I got my first one in October and I really like it. It's the best interface for netflix (much better than my PS3) and is great for streaming from the cloud, phone or Mac. For $99, it's more than worth it.
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post #16 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?

1. The noise, both Xbox 360 and PS3 are noisy.
2. Power consumption. 360 and PS3 are energy whores.
3. The Size, ATV is tiny.
4. One format to rule them all. Encode all vides into Apple format so they play on all your Apple devices.
5. Airplay

I have 3 x xbox 360's and 1 PS3 in my home. If they were used for video playback I would have a monty power bill.
post #17 of 117
I think folks sometimes confuse what Apple TV could be versus what it really is.

If you're firmly within the iTunes and Apple ecosystem, the Apple TV is a very good product. However, for people who are looking to ditch cable or use a lot of non-Apple services such as Hulu Plus, Amazon on Demand, Pandora or Spotify, the device leaves a bit to be desired.

A lot of the same functionality can be found through the PS3, Xbox 360 or some of the more advanced Blu-ray players out there.

I really like the Apple TV for what it does. I've got iTunes Match running and have an old Mac Mini serving up TV and movies to the two Apple TVs in the house. I get Pandora through my Blu-ray player, but Apple's user interface is way better than the Sony. That being said, I certainly wouldn't mind some of the suggestions of other forum posters in a software update or version 3.

My wish would be to add some other services like Hulu, Spotify, or Pandora, though they each compete with Apple to some degree so I don't really hold out much hope. I also like the idea of subscribing to networks through Apple TV -- ESPN and Comedy Central would top my wish list and let me cut the cable cord.

I don't care that much about other apps for the Apple TV. Though many may disagree, I don't really need it to become a gaming device.
post #18 of 117
Apple hasn't even introduced a proper TV yet but already takes 32% from this segment other electronics manufacturers are aiming for.

If they cannot do well against Apple's hobby, what are their chances agains a proper Apple product if later introduced?

post #19 of 117
So an unannounced, unreleased product that few outside of Apple know what it will do, is going to take 32% of the connected TV market. That's a bit of a wild guess.

Of course, if they said 30%, then that would seem like more of a guess, so better make it 32%, so it looks like there was some reasoning behind it other than it being the total stab in the dark that it is.
post #20 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?

Well, in that you've literally never had a good word to say about any of Apple's products while professing your enthusiasm for any and all competitor's products, I am somehow not very surprised.
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post #21 of 117
I believe it. We love out ATV2.
post #22 of 117
Quote:
Originally Posted by EmperorsNewClothes View Post

So an unannounced, unreleased product that few outside of Apple know what it will do, is going to take 32% of the connected TV market. That's a bit of a wild guess.

Of course, if they said 30%, then that would seem like more of a guess, so better make it 32%, so it looks like there was some reasoning behind it other than it being the total stab in the dark that it is.

Here you go, check it out for yourself ... http://www.strategyanalytics.com/def...viewer&a0=6921
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post #23 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more.

It helps to use a product before you pass judgement on it.

Quote:
And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?

I get it! Because you think it's 1995! Good one!

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Originally posted by Marvin

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post #24 of 117
Quote:
Originally Posted by arjaosx View Post

Apple hasn't even introduced a proper TV yet but already takes 32% from this segment other electronics manufacturers are aiming for.

If they cannot do well against Apple's hobby, what are their chances agains a proper Apple product if later introduced?


Great question. We all know the answer: There will be dozens of "AppleTV Killers."
post #25 of 117
Apple TV is fine long as you plan to use iTune and may be something like netflix. But, where is the "Beef" for the internet connect box ? And that is the real "Web Browser" like Google TV has. Like many, I have several apple products in my home. I bought Apple-TV but later sold it on craiglist and bought Sony Google TV blue ray player.

My point is what is wrong with Apple and their fans like me who can not make apple to add browser to apple-tv. Think, if apple-tv has browser along with other things(Air play, iTune,etc..someday app store), than it makes it complete box for the internet connected living room tv box. The official safari addition to apple-tv can make it real killer for other similar box on market.

Rest my case.
post #26 of 117
Quote:
Originally Posted by AppleInsider View Post

While consistently branded as a being "hobby" for Apple, sales of its $99 Apple TV set top box had made it the most popular device in the category, predicted to sell nearly 4 million of the the nearly 12 million TV boxes in the market.

Apple is leading this nascent market, which it still considers a hobby. says Jia Wu, Strategy Analytics' Senior Analyst of the Connected Home Devices (CHD) service.

Totally wrong. Insanely wrong. Not even remotely close to factual. Until I see stats that compare apple tv to 360s and PS3s, I outright refuse to entertain even the slightest notion that this is anything more than Apple fanboy propaganda. And that's not even taking into account that the true market comparison would also compare their numbers to connected DVRs you'd get through Dish, Direct TV, and Comcast. There is NO CHANCE that Apple is even remotely making a dent in those numbers. NONE.
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post #27 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?


Thanks, I really needed a laugh today.
post #28 of 117
Quote:
Originally Posted by EmperorsNewClothes View Post

So an unannounced, unreleased product that few outside of Apple know what it will do, is going to take 32% of the connected TV market. That's a bit of a wild guess.

Of course, if they said 30%, then that would seem like more of a guess, so better make it 32%, so it looks like there was some reasoning behind it other than it being the total stab in the dark that it is.

I think you better reread the article. Or maybe just read it in the first place.
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post #29 of 117
Quote:
Originally Posted by digitalclips View Post

Here you go, check it out for yourself ... http://www.strategyanalytics.com/def...viewer&a0=6921

I was going to read it until I found out I could buy 20 AppleTVs for the same cost.
post #30 of 117
Quote:
Originally Posted by jeffreytgilbert View Post

Totally wrong. Insanely wrong. Not even remotely close to factual. Until I see stats that compare apple tv to 360s and PS3s, I outright refuse to entertain even the slightest notion that this is anything more than Apple fanboy propaganda.

The only propaganda I see is people thinking they can group game consoles in with the category of device outlined by the Apple TV. That's abject nonsense.

Quote:
There is NO CHANCE that Apple is even remotely making a dent in those numbers. NONE.

Sure there isn't.

Quote:
Originally Posted by rash12 View Post

But, where is the "Beef" for the internet connect box ? And that is the real "Web Browser" like Google TV has.

People don't want to browse the web on their TVs. Otherwise it would have taken off in 1985 when the first systems to do anything remotely close to that were first available.

Quote:
Like many, I have several apple products in my home.

But unlike people who actually have Apple products, you seem to have to highlight that for some reason.

Quote:
My point is what is wrong with Apple and their fans like me who can not make apple to add browser to apple-tv.

My QUESTION is: Could you possibly make that a coherent sentence? I'll answer what I think you're asking first, though: No one wants a browser on their TV. Nothing is "wrong with Apple and its fans" (I specifically notice you've used words to not include yourself in that, leading back to my earlier point); something is "wrong" with you. There's a psychological disconnect between the compeer and the TV.

Quote:
Think, if apple-tv has browser along with other things(Air play, iTune,etc..someday app store), than it makes it complete box for the internet connected living room tv box. The official safari addition to apple-tv can make it real killer for other similar box on market.

Not in the slightest. Does XBMC include a browser? Does Boxee? Does Roku? Do ANY of the services that actually compete with the Apple TV other than Google, which HAS TO because that's their business model?

Have you even used a Google TV? That wretched little nub with which you're supposed to move the cursor… ARE THEY COMPLETELY INSANE?! That's not even REMOTELY usable by any human being. Only a masochist with twelve hours to waste getting that cursor to move would want to do that.

Quote:
Rest my case.

So do I.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

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post #31 of 117
Quote:
Originally Posted by neiltc13 View Post

I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?

First, it's much simpler to set up and use. only gadgetheads want kitchen sink gizmos like the PS3 that try to do everything (and sometimes not so good).

second, it works great with all your other Apple stuff. nothing else is as integrated as Apple's ecosystem. only techies want to mix and match all kinds of hardware and services to have the latest bells and whistles.

third, for only $99 each you can easily add multiple TV's to your home set up. and it's readily portable too, so you can take it on vacation, etc.
post #32 of 117
Quote:
Originally Posted by irnchriz View Post

1. The noise, both Xbox 360 and PS3 are noisy.
2. Power consumption. 360 and PS3 are energy whores.
3. The Size, ATV is tiny.
4. One format to rule them all. Encode all vides into Apple format so they play on all your Apple devices.
5. Airplay

6. Interface

I have a first-generation AppleTV (no airplay!) and a 360 and way prefer the AppleTV. The xbox is fine for gaming, but the media interface is horrendous. Not only is it ugly, but it takes so many clicks to drill down to what you want, if you can even do want you want...

I can queue an album if I scroll through them all, but if I first select by genre then by artist/album, I have to queue up each song individually or create a playlist. That's just stupid.

If I have a season of television shows, I have to keep track of which ones I've watched because the xbox doesn't keep a watched/unwatched flag. That's just lazy.

Same thing for podcast episodes.

If I want to switch between playing media stored on my Mac to stream a video on Netflix, I have to hop up about six levels, scroll to a whole different section (one that doesn't make much sense, like 'xbox live') and then dig down to find Netflix and then wait. And wait...

The xbox was clearly designed to be a gaming console with some media capabilities added as a bit of an afterthought. The AppleTV was designed to be a media device and its interface shows that.
post #33 of 117
Quote:
Originally Posted by rash12 View Post

Apple TV is fine long as you plan to use iTune and may be something like netflix. But, where is the "Beef" for the internet connect box ? And that is the real "Web Browser" like Google TV has. Like many, I have several apple products in my home. I bought Apple-TV but later sold it on craiglist and bought Sony Google TV blue ray player.

My point is what is wrong with Apple and their fans like me who can not make apple to add browser to apple-tv. Think, if apple-tv has browser along with other things(Air play, iTune,etc..someday app store), than it makes it complete box for the internet connected living room tv box. The official safari addition to apple-tv can make it real killer for other similar box on market.

Rest my case.

Technically- you can mirror your ipad/iphone and have safari, email, etc through that. Granted- not the best way to access it- but it is definitely accessible.
But you're right. If you are buying a present for someone who doesn't have ONE apple product or have anything on iTunes, then get them a Roku Box instead of an Apple TV. I don't like the UI as much, but it has much much much more content. But if you have several apple devices, use iTunes a lot, or both- you need an Apple TV to get the most out of your content. I love my ATVs, but if I didn't have iTunes it would be useless to me. But thats kind of the point isn't it.....

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post #34 of 117
Quote:
Originally Posted by rash12 View Post

Apple TV is fine long as you plan to use iTune and may be something like netflix. But, where is the "Beef" for the internet connect box ? And that is the real "Web Browser" like Google TV has. Like many, I have several apple products in my home. I bought Apple-TV but later sold it on craiglist and bought Sony Google TV blue ray player.

My point is what is wrong with Apple and their fans like me who can not make apple to add browser to apple-tv. Think, if apple-tv has browser along with other things(Air play, iTune,etc..someday app store), than it makes it complete box for the internet connected living room tv box. The official safari addition to apple-tv can make it real killer for other similar box on market.

Rest my case.

I understand that this requires additional hardware but with AirPlay mirroring you can have all youre iphone/ipad Apps to show on the TV, including safari and games. The ipad also provides a great way to interface with the web with multi-touch and a virtual keyboard. Lets assume ATV2 provided a built-in safari, you still need a way to interface with it other than a remote.

I also used airplay in the ipad TV network apps a lot. Great way to watch TV series you didnt PvR.

imo ATV2 is more of a great add-on to have for current idevices owner than something you buy has a standalone product.
post #35 of 117
Quote:
Originally Posted by djames4242 View Post

6. Interface

I have a first-generation AppleTV (no airplay!) and a 360 and way prefer the AppleTV. The xbox is fine for gaming, but the media interface is horrendous. Not only is it ugly, but it takes so many clicks to drill down to what you want, if you can even do want you want...

I can queue an album if I scroll through them all, but if I first select by genre then by artist/album, I have to queue up each song individually or create a playlist. That's just stupid.

If I have a season of television shows, I have to keep track of which ones I've watched because the xbox doesn't keep a watched/unwatched flag. That's just lazy.

Same thing for podcast episodes.

If I want to switch between playing media stored on my Mac to stream a video on Netflix, I have to hop up about six levels, scroll to a whole different section (one that doesn't make much sense, like 'xbox live') and then dig down to find Netflix and then wait. And wait...

The xbox was clearly designed to be a gaming console with some media capabilities added as a bit of an afterthought. The AppleTV was designed to be a media device and its interface shows that.

WTF are you posting here for? You aren't allowed to give opinions on this forum if you've used both products. You can only post that one is terrible or not on assumption- not if you've actually owned and used it! Seriously... why are you here?

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post #36 of 117
Quote:
Originally Posted by rash12 View Post

Apple TV is fine long as you plan to use iTune and may be something like netflix. But, where is the "Beef" for the internet connect box ? And that is the real "Web Browser" like Google TV has. Like many, I have several apple products in my home. I bought Apple-TV but later sold it on craiglist and bought Sony Google TV blue ray player.

My point is what is wrong with Apple and their fans like me who can not make apple to add browser to apple-tv. Think, if apple-tv has browser along with other things(Air play, iTune,etc..someday app store), than it makes it complete box for the internet connected living room tv box. The official safari addition to apple-tv can make it real killer for other similar box on market.

Rest my case.

you better wake your case up, friend. using screen mirroring lets you display Safari from your iPad on your HDTV today. and this provides a vastly superior UI compared to any browser on any STB, ever, period. it's actually usable!
post #37 of 117
Quote:
Jia Wu

Don't tell me... Shaw Wu finally had to change his name to get a job.

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GOA

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GOA

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post #38 of 117
We have a PS3 and 2 AppleTVs, and the ATVs do the lion's share of video work in our place. The PS3 is great for gaming and BluRays, but in our Apple home a lot of its other media features aren't used.
post #39 of 117
The regular whining and delusional posters come chiming in followed by the rational posters who put them in their place. Not much for me to add to that conversation.

I do expect a new AppleTV for 2012. Hopefully an SDK and App Store, too.


Quote:
Originally Posted by digitalclips View Post

I need another one but can't decide if I should wait for v.3.

It's only $99 but at this point I would wait. I think by February we'll have an idea of what Apple will bring to the future of the HEC. Personally I'm waiting on getting a TV, too. I still don't see how a TV makes sense over an fully integrated AppleTV A/V Receiver or other options, but I'm trying to keep an open mind so I'm waiting.


PS: Anyone using Samsung's AirPlay clone, AllShare?

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post #40 of 117
Apple TV is a great Apple ecosystem accessory. it only needs two things to become a "killer" product:

1. HDMI inputs and a revamped main screen showing their active content in PIP buttons, so it can become your TV's home screen, that you can then control the selected input with apps like Tivo's, Xfinity's, etc. - all from your iOS device, not some IR remote.

2. a totally reworked iOS Remote app to control your ATV itself. the current app is really lame.
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AppleInsider › Forums › Mobile › iPod + iTunes + AppleTV › Apple TV to take 32% of "Connected TV Player" market this year