“It’s no secret that Apple TV — the company’s would-be digital hub for your living room — isn’t selling like hotcakes. Late Friday, Macworld published new Apple TV sales estimates from Forrester Research: the firm guesses Apple has sold 400,000 of the gadgets since it went on sale this spring and may sell another 400,000 during the holiday shopping season. But Apple will likely miss Forrester’s projection of selling 1 million Apple TVs this year,” Dan Frommer writes for Silicon Valley Insider.
“iFlop? Maybe. But it’s not too late for Steve Jobs to fix things. Despite plenty of claims to the contrary, the device still doesn’t have much serious competition,” Frommer writes. “How can the company make Apple TV a winner?”
“Step 1: Upgrade the software on current Apple TVs. The device has impressive hardware specs: it can play HD video, connect to the Internet, and has a USB port. But in the present tense, most of these features are useless: the video content on iTunes looks bad on a HDTV, and the USB port doesn’t do anything,” Frommer writes. “Step 2: For Version 2.0, re-think the Apple TV as a better DVR/set-top box.”
Full article here.
First order of business: Has any other company sold 800,000 units of such a device in the first year? If we had to guess, we’d say “no.” Not even close.
That said, Apple TV can certainly be improved. Frommer’s article is an “everything and the kitchen sink” piece with some pie-in-the-sky stuff that the content providers likely won’t allow – ripping DVDs via iTunes, for example – to downright misconceptions about what Apple TV is meant to be – put a big hard drive in there and turn it into a DVR. Still, since the article offers something for everyone, it contains a few interesting ideas.
One thing that makes a lot of sense that Frommer doesn’t really cover is the idea of using the rental/subscription model for movies and TV shows via iTunes. That model works best with how people interact with such media. We listen to certain songs over and over again; not so with TV shows or movies – such repeat viewings are very rare. We want to buy and own or music and rent our TV shows/movies because we consume each type of media differently.
As we repeatedly say: Business models that fly in the face of human nature are doomed to failure. Apple TV and the iTunes Store – at least when it comes to TV shows and movies – currently fly in the face of human nature. We watch TV shows and movies once; it make more sense for most people to pay a monthly fee and watch what they want. No matter how cheap storage becomes, we don’t want to store episodes of “The Amazing Race” forever. It’s disposable, one-time-only viewing.
Let us subscribe/rent with the option to buy the comparatively few titles we actually want to own via iTunes Store directly from Apple TV, add Safari with wireless keyboard support via software update, get more content, convince the content providers to let you upgrade the video quality (as Frommer suggests), advertise the thing properly, and Apple TV will go from a “hobby” to a real business in no time.
Almost all of Apple TV’s problems stem from the content providers not Apple:
• Not enough content
• Content’s quality (resolution) lacking
• Can’t rip existing DVDs for which you’ve already paid (as iTunes allows CDs to be ripped)
• Can’t buy iTunes Store content directly from Apple TV (as you can already with iPhone and iPod touch)
Here’s one that Apple could probably fix on their own:
• Allow users to browse the Web (which would allow for viewing networks’ ad-supported shows and other video content online)
(Apple TV is already great for sharing photos, home movies, and music on the big screen with friends and family.)
Related articles:
What’s wrong with Apple TV? – November 26, 2007
BusinessWeek’s Best Tech Products of 2007: Apple iPhone, Mac Pro, MacBook Pro; and Worst: Apple TV – November 21, 2007
RUMOR: Video rentals coming to iTunes Store, Apple TV? – November 08, 2007
RUMOR: HD content coming to Apple iTunes Store, Apple TV soon – October 05, 2007
Apple TV a work in progress, could pull in more than $1.8 billion for Apple is fiscal 2009 – October 01, 2007
Prominent Venture Capitalist says Apple TV is ‘amazing’ – September 27, 2007
Apple TV: iFlop? – September 14, 2007
Apple could sell more Apple TVs if they streamed Steve Jobs’ keynotes live – September 05, 2007
Miglia’s VideoExpress offers hardware video converter for Apple TV, iPhone, iPod – August 03, 2007
Repositioning Apple TV: sell it as ‘photo station’ – June 08, 2007
Fortune’s Brent Schlender on Apple TV: Dud or FUD? – June 02, 2007
BusinessWeek: Steve Jobs’ Apple TV ‘hobby’ boosted with improvements, much more to come – June 01, 2007
Deutsche Bank: Apple TV will cannibalize a good chunk of DVD market – June 01, 2007
Apple TV external USB hard drive support enabled via third-party patch – July 30, 2007
AT&T planning IPTV for Apple TV in 2008? – May 31, 2007
Viacom welcomes licensing opportunity for Apple TV – May 31, 2007
Analysts now see Apple TV as catalyst for the company – May 31, 2007
Apple debuts Apple TV with 160GB hard drive, YouTube integration coming mid-June – May 30, 2007
DVDxDV Pro introduces direct export from DVD to Apple TV, iPod, iPhone – May 23, 2007
Elgato releases Turbo.264: USB Stick accelerates iPod and Apple TV exports – May 16, 2007
How Apple’s iTunes Store could deliver High Definition for Apple TV – May 01, 2007
Apple reinvents consumer electronics; iPhone and Apple TV to get better over time with free updates – April 26, 2007
Apple to continually develop new software features for Apple TV, iPhone; offer free updates – April 26, 2007
Houston Chronicle: Apple TV ‘a delightful addition to HDTV setup’ – April 26, 2007
Elgato releases EyeTV 2.4 with Apple TV support – April 18, 2007
Pocket-lint reviews Apple TV: 8 out of 10, iPod for your living room very easy to use, desirable – April 18, 2007
Analyst: iPod sales may hit 500 million, Apple TV emerging as ‘a sleeper hit’ – April 11, 2007
The dam begins to break: MGM films now on iTunes Store; Apple announces over 2 million movies sold – April 11, 2007
Automating BitTorrent downloads on Apple’s Mac OS X is easy – April 10, 2007
Apple TV soon to work with Slingbox, stream iTunes library to mobile devices like iPhone? – April 10, 2007
washingtonpost.com launches high-definition video podcasts via Apple iTunes for Apple TV – April 10, 2007
Laptop Mag reviews Apple TV: ‘The best digital media adapter yet,’ 4.5 out of 5 stars – April 06, 2007
RUMOR: Apple TV team prepping update with new ‘Net-centric features – April 05, 2007
Digit hands-on with Apple TV: ‘simple to set up, a delight to use’ – March 29, 2007
Newsweek: Apple TV has a lot going for it – March 29, 2007
Hacking Apple TV: Joost successfully run on Apple TV – March 28, 2007
Apple TV software hints at future DVR functions? – March 28, 2007
Ten Apple TV myths – March 28, 2007
Ars Technica in-depth review: Apple TV ‘impressed all those who touched it’ – March 27, 2007
Analyst: Apple TV is a platform, not a single product – March 27, 2007
Digital Trends reviews Apple TV: 7 out of 10, ‘huge phenomenon will challenge conventional thinking’ – March 26, 2007
iLounge gives Apple TV a ‘B’ in hands-on review: ‘recommended’ – March 24, 2007
CNET reviews Apple TV: ‘Very Good’ – 7.7 out of 10 – March 24, 2007
Analyst: Apple TV will change the TV business – March 23, 2007
Xvid fully functional on Apple TV – March 23, 2007
Apple TV does not require Widescreen TV or HDTV, works with standard TVs – March 23, 2007
Scoble: ‘Apple TV rocks’ – March 23, 2007
Apple TV hard drive upgrade works – March 23, 2007
PC Magazine review gives Apple TV 4 out of 5 stars – March 22, 2007
NY Times’ Pogue: ‘Apple TV offers a gracious, elegant, effortless, delightful experience’ – March 21, 2007
Mossberg hands-on with Apple TV: ‘beautiful design, easy-to-use, classic Apple: simple and elegant’ – March 21, 2007
Apple TV projected to surpass TiVo, Netflix – March 20, 2007
Apple TV ships – March 20, 2007
enough already. Just come out with AppleTV 2.0. That is why I am holding off. I don’t understand why Apple introduces new products right after the xmas shopping season.
how can Apple fix the Apple TV? let me use the USB for an external drive plug in and there is nothing wrong with it as far as i can see. we love ours, just wish it had a little more storage…..
I love the Apple TV that we have…but it’s because we have all of our favorite shows ripped for it. Seasons and seasons.
We haven’t seen a software update for a long time. (No upgrade to Leopard?) Hopefully it’ll come soon.
1. It should access all kinds of online content like it does You Tube; ie Joost, Vongo, ABC.com NBC.com HUlu.com, Netflix streaming rentals, blockbuster streaming rentals, etc.
2. Video on itunes should be primarily rentals, but if you still want to purchase, let studios have the last word with prices. Honestly, I wouldn’t have bought anything from iTunes if I could have rented.
3. Allow your computer to stream a physical DVD from your computer to aTV, remote control functionality.
Steve Jobs is a big big big liar. He called it a “hobby”. C’mon guys, I remember how thrilled he was when he presented it at Macworld. We all know what the product is missing. Movie rentals, downloading movies from your couch, etc.
“ripping DVDs via iTunes”
This should be legal anyway, ala ripping CDs. So long as they arent shared, there should be allowances for this.
perhaps they could attached a code to the rip so to track illegal swapping and/or require that you insert the disk in the drive once per year to verify that you still own the disk.
@ Macromancer
Easy enough with Handbrake, but it would sure be nice to have it all in iTunes.
The only good Forrester analysts are the ex-analysts, like Carl Howe at Blackfriars.com
Apple can rectify the Apple TV situation very simply by adding full support for resolutions up-to-and-including 1080p, providing a DVR with two HDTV tuners standard, and increasing support for non-iTunes content such as DVD. I doubt that the last two on my list will ever happen. So I also doubt that I will ever purchase an Apple TV.
The 24″ iMac makes an excellent tv set but you have to add the Elgato hybrid to enable the tv function. Why Apple hasn’t put tv tuners into the iMacs is beyond me. I can’t help but think that if they did then a lot of people wouldn’t bother with the tv set at all. In my case I have two 24″ iMacs with two Elgatos so can tape two programs whilst watching two others, one with sound on and the other with sound off. I understand that beleaguered Dell has built in tuners these days, Why not Apple? And why doesn’t Apple make a computer which projects onto a screen, which could be used for both Keynote/PPt presentations as well as a tv. So the upgraded Apple TV would simply be a built in tv tuner, for people who don’t need or want screens larger than 24″ or who would be happy with projecting tv programs from their computer onto a wall sized white screen.
I love my Apple TV, best way to display my iPhoto library to a group.
Has optical out needs 5.1 surround sound.
I want a second one for the TV in my bedroom, I am waiting for Apple TV 2.0.
Fix remote lag time on startup, after it goes into low power mode, or when syncing. Give me internet on my Big Screen TV.
Games would be nice, just family fun time wasters like what is on iPod.
Chuffin Nora, iPhone voted gadget of the year on the gadget show on channel 5 in the UK. Normally they are a bit sniffy with Apple gear. http://gadgetshow.five.tv/index.htm
I am guessing El Jobso listens to a lot of music and hardly ever turns on a TV.
As a person who would love to buy an AppleTV, I just can’t justify it when it does so very little, leaving almost all my Mac content unaccessible. I want my Apple computer content available on my TV, like the name implies, similar to how the Xbox works. My decision not to buy has nothing to do with iTMS content availability. Period. I am hoping Apple will improve this device rather than just letting it die, which is inevitable if it doesn’t improve drastically.
Daniel Eran wrote a good article detailing what I hope to see from an iTunes movie rental service.
http://www.roughlydrafted.com/2007/12/07/how-apple-could-deliver-workable-itunes-rentals/
I’d buy an Apple TV right now if that ever came to fruition.
i still continue to buy tv since his release and it stills a good product,Apple only could make temperature less hot or the software less bigger.
Apple could “fix” the AppleTV by cutting its price in half and adding a cable tuner.
It would fly off shelves.
I still don’t see the use of the Apple TV. I have a Mac in my living room that is patched in to my entertainment center. The Apple TV gives me nothing that my Mac cannot not already do.
If Apple were to add a decent DVR capability, that at least would let the Apple TV offer something that Mac’s do not have out-of-the-box.
Being able to rip DVD’s would be nice, but I realize that the studios would never allow this. That feature would be a nice way to free up my Mac when I want to do something else- I could let the Apple TV rip the content.
Oh well.
I’ve said it before that the ATV is a 2 prong device.
1. For content you own (store and watch)
2. For content you purchase (either buy or rent)
ATV does a great job at #1 but #2 isn’t so hot for many of the reasons stated above. (Mainly lack of content and inability to download straight from ATV)
I love my ATV and am waiting for a revision to buy one for the bed room.
I’m afraid some of you geeks are missing what Apple does best. Make simple easy to use products. TV tuners, dvd player and the like is making a simple devise more like something Microsoft would design. All Apple TV needs is movie rentals and the sales would double. I must say that I think the only way Apple would put a dvd player on it is if the movie studios refuse to allow movie rentals on iTunes.
I currently have my G4 Powerbook working as an Apple TV using Frontrow and Keyspan remote. I love the added benefit of having the internet that the Powerbook provides but it is not necessary for the Apple to do very well. It does very well at what is was designed for. All it needs to put it over the top is movie rentals.
Since Apple TV is designed to turn an HDTV into a giant iPod for the living room, it follows that it should do everything that an iPod can do. Since iPods can now surf the web and buy from the iTunes Store directly, those features should become part of Apple TV. When resolution of iTunes Store content goes up, that “problem” with Apple TV will be fixed. If video rental comes to the iTunes Store, it will also come to Apple TV.
I wish they would fix the Superdrives on the Mac Mini BEFORE they fix anything else.
What problem? Ask anyone who has a year old Mac Mini. The driver just basically turns into a CD/DVD read only. And only Commercial produced DVDs. Nothing rips.
Needless to say, I’m a bit unhappy with Apple right now.
I hacked an original XBOX and made myself a nice media center using XBMC — sure it’s a Microsoft product, sure it’s kind of a gray area in legality, sure it doesn’t do HD… but it sure was cheaper.
$25 bucks… I can play Vid Podcasts straight from the unit, no syncing with my Mac, I can store movies on the HD, play games, ect…
I’m still getting one after MacWorld.
Lagging Mac sales? Apple’s response: make compelling software content.
Lagging AppleTV sales? Apple’s response: make compelling TV content?