Analysts now see Apple TV as catalyst for the company
Thursday, May 31, 2007 - 03:16 PM EDT
"While much of the attention Apple Inc. has received of late has been tied to the upcoming release of the company's iPhone, industry analysts say the company's set-top box holds the potential to become a profitable part of Apple's growing consumer-electronics strategy," Rex Crum reports for MarketWatch.
"Another part of that strategy came into view Wednesday, when Apple said that, beginning in June, owners of the Apple TV device will be able to wirelessly stream video content from Google Inc.'s YouTube site to their wide-screen televisions," Crum reports.
"That YouTube development marks the first time the Apple TV, released in April, will be able to play content from a source other than the company's iTunes Music Store," Crum reports.
"Chris Whitmore of Deutsche Bank... predicted that adding YouTube to Apple TV signals the company is likely to make more outside content available for the device and could set Apple TV up for a growth pattern similar to that of the popular iPod digital music player. Additionally, the analyst raised the possibility that Apple could take in advertising revenue for content accessed through Apple TV, and he estimated that capturing just 5% of the DVD market could add 10 cents a share to Apple's annual earnings," Crum reports.
"UBS analyst Ben Reitzes... estimated the market for DVD sales at 420 million units a year, but, as more content becomes available for the Apple TV, the device, he said, 'could be considered as a DVD replacement,'" Crum reports. "Apple also said the Apple TV would now be available with an option for 160 gigabytes of storage, capable of holding 200 hours of video, for $399."
Full article here.


Not bad for a "hobby".
(First?)