Loading...
Symbols:
Authors:

Apple TV: It Could Be the End of the Line

by: Larry Dignan September 28, 2008 | about stocks: AAPL    

Larry Dignan

About this author:
Become a Contributor Submit an Article
  • Font Size:
  • Print

Rumors are swirling that Apple’s (AAPL)“hobby,” also known as Apple TV, is about to get deep sixed for something else. Is this a case of Apple fans projecting rumors to make up for a so-so Nano launch?

Apple TV has a few fans–our own Sam Diaz is one of them–but for the most part the product just hasn’t gained much traction. Apple TV is a hobby for Steve Jobs–not a world conquest.

Now TUAW is reporting rumors that Apple is telling resellers to remove Apple TV displays and literature by Sept. 30. TUAW added to its post and noted that it’s possible that just the licensing is expiring–not Apple TV’s life as a product. MacRumors adds that new Mac part numbers are appearing. Certainly it must be some Apple TV/Mini hybrid living room must have thingamajig. Or not. MacRumors downplays its original report.

GigaOm cooks up what the ultimate Apple TV replacement would do.

No matter what Apple cooks up it’s going to have a tough slog. Why? The fundamental premise of YASTB (yet another set-top box) is all wrong. Let’s add it up: The cable box, DVD player and video game machine add up for one crowded entertainment center. Any other set-top box requires thought–too much for a consumer like me. Apple would be better off allowing you to plug your iPod into the TV and use it as a conduit from your living room to iTunes.

The dirty little secret here is that your cable box works pretty well. Sure, gadgets like Apple TV and the Netflix (NFLX) player by Roku have a role, but the market may be limited. Both devices appeal to their respective bases, but it’s not like folks are lining up around the block for them. At least Netflix has a core base of subscribers that will fork over $99 for its player.

And digital convergence? I already have that. I watch TV with a laptop on the couch–especially when watching football. I suppose I could use some widget on my TV or stream videos. But really I just want to know how my fantasy team is doing while my Eagles are about to lose to the Bears. Unless a set-top box can ease my pain I’m not terribly interested (at least the Phillies serve as a balm).

Related Articles

This article has 6 comments:

  •  
    Sep 29 11:13 AM
    The television broadcast companies are providing so much value-add to their services that additional set top boxes are becoming redundant and a waste of money. AT&T Uverse, for example, has 4 tuners, 80 gig DVR, streaming premium movies, Flickr integration, yellow pages, etc. As appealing as ala carte TV is, it's just not cost effective.
    Reply
  •  
    Sep 29 11:22 AM
    I like my Apple TV, but I could easily live without it. I have Netflix, which is quite a deal for someone who doesn't watch tons of broadcast TV. The Netflix Roku is a bust though.

    Nextflix brags about the 10,000 titles that are available to "watch now" over the Internet. Almost NOTHING in my queue falls in this category. It's the obscure stuff that's available that way.

    The Apple TV needs some nurturing. It has more capability. Apple needs to grow it, not abandon it. The current hardware has more tricks that it's capable of. Come on Apple.
    Reply
  •  
    Sep 29 03:34 PM
    It's an immature market. The Apple TV is clearly better than some of the hobbled-together solutions, like the XBox media center and most of the value-added cable services; but people haven't decided they "need" this kind of device yet. And Apple doesn't need great AppleTV sales for its balance sheet, either, unlike companies like TiVO.
    Reply
  •  
    Sep 30 01:15 PM
    Don't forget how long it took people to 'get it' when the iPod first appeared. I bought my daughter one within days of its first appearance. She said "It's nice Dad, and thanks, but I don't want it'. 7 years later, her 5G iPod is indispensable.
    I think ATV was an experiment for Apple - a sort of placeholder for a multimedia home iPod ... an idealised vehicle for a Front Row based media centre. The trouble is that Apple was late to this game and they hobbled ATV's capabilities unnecessarily - it is a computer after all. If they added iPod Touch style apps as well, it would likely take off. It could even be configured into a capable home management system.
    Reply
  •  
    Oct 01 08:14 AM
    AAPL Tv could be the biggest winner in the universe if it was--a TV...
    Reply
  •  
    Oct 13 02:15 AM
    Apple TV is a great way to view and listen to all your iTunes content, YouTube content, etc.... on the TV. It's a no-brainer that they will produce a TV with this built in (and some extra surprises no doubt).

    BTW, NETFLIX announced they would be compatible with iTunes by the end of the year. How did you miss that?

    Finally, your writing would be much better if you didn't inject yourself into the story. Who cares if you play fantasy football? I do too, but it has very very little to do with Apple TV. And just because someone plays fantasy football doesn't mean they don't have home movies, iTunes videos, huge iTunes libraries, etc.... so it's hardly worth mentioning your personal proclivities.
    Reply
More Comments on AAPL ยป
More by Larry Dignan
Investment Resources
Money Managment
Research
Seeking Alpha provides these ads as a service to its leading contributors
Articles on related themes
Television
Digital Home
Book Publishing
Cable