Anticipated Apple TV update seen as stepping stone for connected HDTV
Apple is expected to launch a new Apple TV in the coming months with limited storage, a lower price, and its own App Store, paving the way for an Internet-connected HDTV as soon as 2012.
Analyst Gene Munster with Piper Jaffray on Monday issued a note to investors in which he reiterated his belief that Apple plans to launch a connected, full-fledged HDTV in the next 2 to 4 years. He acknowledged recent rumors that the existing Apple TV set top box will be renamed iTV, but said that the anticipated product update will only be a stepping stone to the eventual flat panel living room TV.
A key component for the Apple television set, Munster believes, will be Apple's soon-to-launch data center in North Carolina. He believes the massive location could serve as a hub for a cloud-based iTunes service that would allow users to stream their catalog of movies and TV shows.
Munster believes the upcoming Apple TV update will add an App Store, allowing users to download applications to run on the device. He also sees the product having a lower price and less internal storage, as more content is streamed without a need to save it on the device.
The new Apple TV would be an attempt by Apple to fight the set top box model that currently exists in America. In June, Apple Chief Executive Steve Jobs explained that the Apple TV remains a hobby because it's hard to break in to a market where consumers are used to receiving a cable box for free or for $10 per month.
"The only way that's ever going to change," Jobs said, "is if you can really go back to square one, tear up the set top box, redesign it from scratch with a consistent UI across all these different functions, and get it to consumers in a way that they're willing to pay for it. And right now there's no way to do that."
But a new cloud-centric Apple TV is rumored to cost just $99, potentially making the device a much more attractive option for consumers.
When Apple can overcome the "primary" hurdles of set top boxes and live TV, Munster believes that is when the company will strike with an Internet-based iTunes TV pass for $50 to $90 per month. An App Store could also offer games, and services like Netflix and Hulu Plus, built right into the set.
As he has said before, Munster believes Apple could push into the hDTV market in the next 2 to 4 years, and could "move the needle" in a market that as of January of 2010 was worth more than $30 billion.
"Apple's ability to deliver hardware, software and content that could replace an entire entertainment system with a single TV, puts Apple in a unique position for the emerging connected TV cycle," he wrote. "Apple already has several of the key ingredients for success in the connected TV market, many of which would differentiate Apple from current market players."
Analyst Gene Munster with Piper Jaffray on Monday issued a note to investors in which he reiterated his belief that Apple plans to launch a connected, full-fledged HDTV in the next 2 to 4 years. He acknowledged recent rumors that the existing Apple TV set top box will be renamed iTV, but said that the anticipated product update will only be a stepping stone to the eventual flat panel living room TV.
A key component for the Apple television set, Munster believes, will be Apple's soon-to-launch data center in North Carolina. He believes the massive location could serve as a hub for a cloud-based iTunes service that would allow users to stream their catalog of movies and TV shows.
Munster believes the upcoming Apple TV update will add an App Store, allowing users to download applications to run on the device. He also sees the product having a lower price and less internal storage, as more content is streamed without a need to save it on the device.
The new Apple TV would be an attempt by Apple to fight the set top box model that currently exists in America. In June, Apple Chief Executive Steve Jobs explained that the Apple TV remains a hobby because it's hard to break in to a market where consumers are used to receiving a cable box for free or for $10 per month.
"The only way that's ever going to change," Jobs said, "is if you can really go back to square one, tear up the set top box, redesign it from scratch with a consistent UI across all these different functions, and get it to consumers in a way that they're willing to pay for it. And right now there's no way to do that."
But a new cloud-centric Apple TV is rumored to cost just $99, potentially making the device a much more attractive option for consumers.
When Apple can overcome the "primary" hurdles of set top boxes and live TV, Munster believes that is when the company will strike with an Internet-based iTunes TV pass for $50 to $90 per month. An App Store could also offer games, and services like Netflix and Hulu Plus, built right into the set.
As he has said before, Munster believes Apple could push into the hDTV market in the next 2 to 4 years, and could "move the needle" in a market that as of January of 2010 was worth more than $30 billion.
"Apple's ability to deliver hardware, software and content that could replace an entire entertainment system with a single TV, puts Apple in a unique position for the emerging connected TV cycle," he wrote. "Apple already has several of the key ingredients for success in the connected TV market, many of which would differentiate Apple from current market players."
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Snappy!
The average consumer is being drowned in a barrage of new technology, and most have now bought their family TV which I'd imagine for most families would see them through at least three or four years.
Apple need to focus on a box capable of delivering 1080 hi-def content, with full tvr capabilities and tv tuner, along side all the strengths/functionality of the iOS with app store, games and face time (a return of the external iSight camera to fix on your telly for video chat in the living room). It would also need a Blu-Ray player for most normal consumers to consider the purchase. If they deliver this, then people will be a little more forgiving as more content comes online over time. It would also need blue-tooth support for keyboard and other input device. Wireless, simple streaming of content from computers/laptops/iPads in the household would be an additional killer feature.
A box which offers only limited content from limited content providers will remain a hobby. A single set top box that replaces all others and introduces new functionality would revolutionise the home media set up.
How will an ATV replace an audio receiver for example? Will it amplify Dolby True HD and DTS Master and have a big row of 7.1 speaker terminals? Somehow, I suspect not.
Will an ATV replace an Xbox 360 or a PS3? I'm sure it will play casual games and the like, but will an ATV be hosting the latest Halo, GTA, God of War, or Gran Turismo anytime soon? Again, I suspect not. Gaming in particular requires absolutely massive investment and commitment on all fronts which Apple have never shown the slightest bit of interest in. That the iPhone has proved popular for small scale gaming happened by accident, and it's an epic leap to take that up to the level Microsoft, Sony, and even Nintendo operate on.
And then there's the issue of replacing the humble DVR/Cable set-top box. Obviously this will depend on content and pricing, which Apple are currently miles behind on. I realise things are a little better in the US, but here in the UK the iTunes store is barren, grotesquely over priced, and usually not in even 720p, let alone 1080i or 1080p. Even if Apple was committed on this front would the providers play ball? What's in it for them to lessen the appeal of their own TV channels and platforms by offering everything a la carte to Apple?
Jobs was right when he said there was no way to break into this market.
As usual, the Americans are way behind on technology so in order to catch up with others they come with Apple TV and a service that's only available in America, not even Canada... like Hulu etc. Hulu is gay anyway...
The reason? Some sort of stupid and primitive TV law that forbids you from broadcasting the most interesting TV shows internationally, then they wonder why there is so much piracy... Yeah, well guess what, with a little bit of online research people will figure out how to download an HD episode for free in a matter of minutes and put it on their HD streaming devices and watch them on their HDTVs... So if you ever wonder why there is so much piracy, it's because of some unreasonable people who are only interested in coming up with pointless laws restricting and complicating entertainment.
The only reason I've ever thought of wanting an apple tv is the choice of renting films, but at it's current price it just works out cheaper to buy the films on DVD.
Apple need to focus on a box capable of delivering 1080 hi-def content, with full tvr capabilities and tv tuner,.
Naw, we already have all that stuff. What is most needed is a better way to buy content from Steve. Apple TV works OK, because you can buy movies and stuff. But I want to buy apps too. And instead of recording series on my horrible DVR, I will be able to simply buy a subscription from Apple.
Naw, we already have all that stuff. What is most needed is a better way to buy content from Steve. Apple TV works OK, because you can buy movies and stuff. But I want to buy apps too. And instead of recording series on my horrible DVR, I will be able to simply buy a subscription from Apple.
What you'd need in that case is for apple to have deals worldwide with every broadcaster/producer - it'll never happen and the device would be derided for having a lack of content. It needs to replace, or it has no place.
The box on the other hand, that has huge potential and I'd buy in a second. It needs the Magic Trackpad if it's going to use iOS, and it needs a great consolidating interface for streaming content.
Check out PlayOn.TV for a preview. It does an awesome job of collecting all the Hulus, NetFlixes, Comedy Central, et al, and presenting it in an easy to use interface that can be delivered just about anywhere you want. It's not the screen that is holding things back.
If Apple thinks they can make a go of $5 movie rentals and $3 episodes from iTunes they will fail. If they embrace the iOS ecosystem and internet TV it could be huge.
Ahw... all this consumer stuff... how I long for the days when it was Apple Computer...
If the "consumer stuff" helps Apple to keep developing the Mac good. Remember when people were predicting Apple's demise? Starting with the iPod and then the iPhone, Apple survived and is stronger than ever.
Steve O pretty much dismissed the future of the Apple TV on that D? interview so why are we to believe there is one forthcoming? He said the business model had no where to go as quoted in the article. Besides, you all hate Pied Piper and his predictions.
Forget the stupid TV Apple and fix the stuff you already have out. Apple has serious problems executing lately and if I were Steve Mobs I would pay attention to that. The company has a huge black eye over the iPhone 4 and their brand name is in jeopardy.
Straighten up and stop making stupid decisions.
The only problem with TV that I can see is that it will be limited to whatever I can get on iTunes. Currently I can browse the net as a whole internet (not just apps or itunes) and can play flash and all, something I don't see TV doing.
I don't think the connected tv fits apple's business model. People are much more likely to upgrade their apple tv box if its $99, but a $1999 TV will likely not be replaced for a decade.
If a modern TV lasts 5 years, the owners should consider themselves lucky. Once Apple makes TVs, then they will last a decade.
I don't think the connected tv fits apple's business model. People are much more likely to upgrade their apple tv box if its $99, but a $1999 TV will likely not be replaced for a decade.
The Apple Stores are also not currently set up to handle large items. Nobody's going to lug a 60" TV around a mall, and Apple would have tough competition against Best Buy etc. that offer delivery and in-home setup.
Apple should stay with the box, and focus on getting it right.
Under my TV I have a digital set top box with 320 Gb hard disk recorder; and a combined DVD/VHS Video recorder/player. They take up a lot of space, but all the functionality is already there. It would be nice to have a BluRay player too, and if it could record the HD video I make of my family direct from my computer that would be fantastic.
What would sell is a device that combines everything into one: interface with the computer, interface with incoming TV, ability to play and record to disk based media, set top box and streaming music/radio with Dolby surround sound all built in. Renting the odd video may be a subsidiary bonus, but it's not a reason to buy on its own.
Anything less than a complete package and people will just stay with what they already have.
To say that "that's not Apple's business model" is risible. Consumers don't care what a manufacturer's interests are, they focus on their own. That is something Apple used to appear to understand, but these days I wonder sometimes. I really do.
What you'd need in that case is for apple to have deals worldwide with every broadcaster/producer - it'll never happen and the device would be derided for having a lack of content. It needs to replace, or it has no place.
Sorry to break your heart but the TV will be primarily beneficial to the US for some time but at least you have Spotify.
Whether the content owners & cable companies like it or not TV is moving to the net. The best they could do is slow it down. With a Netflix, ABC and Hulu Plus apps one can get by with no cable box.
At a 99 dollar price point I would buy iTV but only if it had a Netflix App on it. This would be about the same price as a Roku box but much more versitile and I already have on demand streaming with my Netflix subscription. As I have stated in other posts, Apple's biggest competition is Netflix and it is very odd that they had the CEO of Netflix on stage for the iPhone Release.
@Swissmac- Yes people get OVER THE AIR HDTV for free, but still pay for cable. In my area, HD cable costs about $80 per month, which is why I dont have it, but my rabbit ears on my Flatscreen works just fine for free ota programs. Im not sure where you get your DVD's but they seem to be stuck in the 14-22 dollar range for recent, quality movies. Sure I can buy "Youve got mail" for 8 dollars, but why would buy when I can rent for half the price. Not like Im going to watch that movie over and over.
Ahw... all this consumer stuff... how I long for the days when it was Apple Computer...
do you find their Mac offerings to be lacking nowadays? What effect has iPhones/iPads/etc had on their Mac products?