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Fri, Jan 08, 2010 - 05:34 PM EST  —  AAPL: 211.98 (+1.40, +0.66%)  |  NASDAQ: 2317.17 (+17.12, +0.74%)

Steve Jobs: Apple TV still a hobby right now
Wednesday, October 22, 2008 - 03:44 PM EST

"Not Steve Jobs' most important comment during last night's earnings call, but still interesting: Apple's chief admits no one has succeeded yet at bridging your living room TV with the Internet -- including Apple, whose Apple TV set-top box isn't flying off store shelves," Dan Frommer writes for SIlicon Alley Insider.

Jobs: I think the whole category is still a hobby right now. I don’t think anybody has succeeded at it and actually the experimentation has slowed down. A lot of the early companies that were trying things have faded away, so I’d have to say that given the economic conditions, given the venture capital outlooks and stuff, I continue to believe it will be a hobby in 2009.

Frommer writes, "Jobs is right -- there's probably still no pressing, mainstream demand for an Internet TV set-top box, especially if they're going to have to cost $200-300... But that doesn't mean there might not eventually be a market for something like the Apple TV -- with a lower price tag and a few improvements."

"We still think the Apple TV would benefit from a DVD drive -- people still own/rent a lot of DVDs, and then the Apple TV would be able to replace something in the living room, not just add to the mess of cords. And we think opening the gadget up to video beyond Apple's iTunes store and YouTube, sites like Hulu, MLB.TV, ABC/NBC/CBS/Fox... would be a smart, harmless move," Frommer writes.

More in the full article here.

[Thanks to MacDailyNews Reader "Sam for the heads up.]

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Oct 22, 08 - 02:47 pm Comment from: Richie

Give me a slot loading dvd/cd drive and the Apple TV will be under our tree. No slot, no buy.

Oct 22, 08 - 02:48 pm Comment from: TowerTone

http://www.boxee.tv/

for those that didn't read the full story

Oct 22, 08 - 02:53 pm Comment from: Viktor

iPod was the most expensive Digital player at its time, and even that, its success is huge and that is because iTunes Store.

I really like the idea of not having to go out to rent a movie or paying late fees, I really like the apple tv idea, but it need to have more movies at a little bit lower price. What would it need to take off? more contents on the iTunes store??

Oct 22, 08 - 02:54 pm Comment from: makemineamac

I don't know, I've had the Apple TV since it first came out, and renting a movie via 'it', instead of driving to the video store, sure makes a lot of sense for me economically right now, and I'm sure it would mean the same for a few more people if it had the right marketing.

I guess we're still a few years away from the elimination of physical media - I don't use it anymore but lots still do, but once that happens, and there are networks that can support the amount of bandwidth required adequately, I'm sure popularity of this kind of device will really take off.

I love it, and in combination with an eyetv dvr it's been a very satisfying device.

Oct 22, 08 - 02:54 pm Comment from: Wealthy Industrialite

No, no, no. Give me built-in DIVX and AVI support. The XBOX 360 and PS3 have this. Making people hack their Apple TVs to get this functionality is stupid. The iPod took off thanks to the MP3, the Apple TV could take off if it started supporting more video formats. It makes no sense that I can't play back video files from my camera on Apple TV.

Oct 22, 08 - 02:58 pm Comment from: Sapi Mati

Give me free downloads of TV shows (ads supported) and I am sold, that will allow me to cancel my cable TV and watch the shows whenever I want.

Oct 22, 08 - 02:59 pm Comment from: cmw

I do love my apple tv, with reservations, I think even I see it as a novelty device, I haven't fully committed to everyday use yet.

I love watching youtube vids on it, yet it needs a keyboard for searching, typing letter by letter boils my blood.

I love renting movies, but 24 hrs? forget it. And the selection? It needs a netflix-like library with crazy oddities from the past that I can peruse and watch, not just recent movies like "Baby Mama" and "The Crappening" and a smattering of oldies.

Music is flawless, I actually use apple TV via my computer and a wireless hard drive (much faster to use the computer for searching etc).

It's actually unresponsive a great deal of the time, which puts me off using it. So I guess it's not ready (still) for prime time, but I like the way Jobs is almost saying "let's evolve this thing over time and see what happens" I for one am happy to join in.

Oct 22, 08 - 02:59 pm Comment from: waiting to cancel cable

I understand that most people are being affected by the economic downturn, but that's actually a positive for an appleTV update.

I've been waiting for a cable replacement for years. I'm sick of cox, comcast, time warner, et al. Give me subscription based access to TV shows and add access to hulu, fox, cbs, abs, etc online content and I would be very inclined to cancel my cable bill. This would most likely SAVE me money.

The only problem would be getting live programming such as ESPN, NFL, news, etc.

MDN word: Still. As in still waiting for apple + UVERSE

Oct 22, 08 - 03:03 pm Comment from: makemineamac

@cmw We're lucky, we get 48 hour rentals in Canada, not sure why you don't, but I agree 24 hours is just too short!

Oct 22, 08 - 03:05 pm Comment from: Willie G

Personally, I enjoy my  TV, and am very glad I got it. I have nearly 130 movies on it now (mostly ripped DVD's from my collection - thanks Handbrake) that I can enjoy anytime I want with the utmost convenience.

I do wish that Apple would issue a software update to allow the USB port to use external drives, so I could easily add a TB more storage capability, but otherwise, I am satisfied.

DVD's are old-school, and unnecessary, and DIVX and AVI are overrated, they offer NOTHING over m4v in terms of quality, and there is no real logical reason for adding the codecs...

Oct 22, 08 - 03:06 pm Comment from: Jersey_Trader

I have the 1st AppleTV that came out and enjoy it for the things I got it for (Pictures, video, music, ...). But, it would not take much to turn it into a MacMini DVR with a DVD back up.

With the $25 billion in cash, Apple could buy up a company like TiVo and make MacMini DVR the new unit!

Oct 22, 08 - 03:16 pm Comment from: Gil

If it can't play my laserdiscs, no buy.....

wink

Oct 22, 08 - 03:17 pm Comment from: David

If they added hulu I would buy one today. 99% of my tv watching is through hulu.

Oct 22, 08 - 03:18 pm Comment from: Mac-nugget

@cmw
Get an iPod Touch or an iPhone, no more selecting letter by letter. Remote App. The best thing to wed iTunes, Macintosh, AppleTV, iPod Touch and iPhone.

Oct 22, 08 - 03:19 pm Comment from: John B

For me, nothing right now beats NetFlix. They have the largest selection of movies, period. Movies cost me around $2 each. I get to keep them as long as I want and watch them as many times as I want. If a movie is available on Blu-Ray, I get it automatically, and the quality is way better than download. And I don't have to go out. I'm not much of an impulse watcher, so that's not an issue for me. Until Apple TV can provide me with a similar or better experience, I'll stick with what I have. Of course that's just me, and clearly others have different priorities.

Oct 22, 08 - 03:28 pm Comment from: Macromancer

They are just lulling their competitors into a false sense of security until they unleash the entire strategy onto the world. I think they are looking at alternative distribution methods to really make this thing take off. Once that's in place they will be ready to pounce.

Oct 22, 08 - 03:32 pm Comment from: 2 Cents

"A lot of the early companies that were trying things have faded away,..."

VUDU, Roku Netflix, PS3, XBOX 360, etc. Really, experimentation as stopped? Fading away?

I'd believe, "We're restricted by the crappy bandwidth in the U.S." before that. A new product is in the works or it is a hobby because of download speeds.

Oct 22, 08 - 03:36 pm Comment from: ralph from berlin

1. more itunes movie content
2. dvd or blue ray drive
3. more internet video (hulu etc.)
4. advertising!

none of that would hurt apple's business-model and/or spendings much, would surely accelerate sales.

Oct 22, 08 - 03:38 pm Comment from: DogGone

I agree the Netflix model makes more sense.

Being price conscious, I would need the unit to retail for 150 tops and the movies to be equivalent to the $2 Netflix works out to be.

The other thing is that the AppleTV is not a cool product like the iPod, iPhone, iMac and MacBook. Few people will shell out 230 for the privilage to buy / rent movies from Apple.

Oct 22, 08 - 03:57 pm Comment from: cmw

@Mac-nugget

the remote app controls my media, but not any other functions like you tube search input which requires a keyboard..or am i wrong? I hope I am and I missed something.

Oct 22, 08 - 03:59 pm Comment from: CYxodus

Turn it into a cable box replacement, add video recording and give it an iPod sync dock and it'll fly off the shelves. That's what I want in Apple TV.

Oct 22, 08 - 04:00 pm Comment from: iWill

Apple TV demonstrates the technically possible future of television, now. That's the key. Getting the licensing worked out has got to be, as Steve says, its own bag of hurt, compared to Blu-ray.

To see HD video streaming to the HDTV screen, is nothing short of seeing the future path of television distribution. Sure, there are details to be worked out, but the writing is on the wall; internet tv is a foregone conclusion.

We, the video consuming public, can only stand to benefit. Stay tuned for more good information.

Oct 22, 08 - 04:02 pm Comment from: HolyMackerel

Anyone know how to get Hulu working outside the USA? Maybe this is its stumbling block to introduction…

Oct 22, 08 - 04:04 pm Comment from: Demon

Love my Apple TV and with the last software update that allows Music Videos to be played like standard music Tracks it's even better. The HD TV shows in iTunes are cool too. My biggest complaint is storage space.

Apple needs to make a move to expand the Apple TV's storage abilities. Activate the USB Port and cut a deal with Seagate or Glyph to add USB drive support with built-in Data redundancy with Time Machine. Right now the Apple TV (160GB HDD) is 90% full and it's just got Movies, Music Videos & TV shows on it my entire music collection is on an Mac Mini along with the same Movies, Music Videos and TV. While you can stream them stuff from iTunes on the Mini to the Apple TV it's a bit of a pain and a huge waste of HDD space. If it would all fit on the Apple TV and the Apple TV had a couple of iPod docks and were capable of managing a few iPods plus handle all your media Management then ok.
Apple TV Media Management Server-
Apple TV w/enhanced upscaling for 1080p
2 built-in iPod Docks
1 CD/DVD Player
Integrated simplified Time Machine
USB HDD for Media Storage Expansion and/or Time Machine back-ups (Plug-in 2 1TB HDD and expand your Apple TV storage space plus the you could have the ability to activate Time Machine to back up your media & playlist files to the second drive.)

Oct 22, 08 - 04:05 pm Comment from: Follower

@cmw - If you have the Remote app running on your iPhone/iPod touch and liked to the Apple TV, and you select YouTube search on your Apple TV with its small white remote, a keyboard will immediately pop up on the screen of the iPhone/iPod touch.

Oct 22, 08 - 04:25 pm Comment from: cmw

@Follower
I totally missed that feature, wonderful!

Oct 22, 08 - 04:38 pm Comment from: HD Boy

What AppleTV needs:
1. Dual HD Tuners: Option for HDCP-compatible displays.
2. HDTV/DVR recording.
4. HD: 500 and 750GB options.
5. DVD Player (if not Blu-ray Player): This doesn't have to be a recorder).
6. iTunes: Internet Radio or HD Radio, 48-96-hour HD rentals with list-cueing interface.
7. iTunes: Much larger HD rental library (30,000-50,000 movies).
8. OS X/iPhone features: Safari browsing, SMS, iChatAV, Mail & Calendar, Keynote, Time Machine compatibility & more.
9. Gaming: Obviously it would need a much better CPU & video graphics).
10. Full iPhone/iPod Touch (learning) remote control support.

Oct 22, 08 - 04:56 pm Comment from: AlanAudio

The technology works well and will get better, but the problem is getting hold of the content. Until such times as the studios actually want to provide material at sensible prices ( cheap ), it's going to remain a hobby.

Oct 22, 08 - 04:58 pm Comment from: Buster

Add a bluRay slot loading drive and I am THERE baby! Who do I hand the cash to?

Oct 22, 08 - 05:11 pm Comment from: opinion

in my opinion put a App Store in the Appletv to people play games and download then to the mac at same time and play in the mac or Applet,in the Appletv they should put games appropried to the remote so it can be easy to play,and try to put more people to buy the remotes to have a second or more players at same time.

Oct 22, 08 - 05:12 pm Comment from: poo

I love my Apple TV. F**k DVDs. PS3 w/ Blu Ray is the only physical media device to own.

Oct 22, 08 - 05:25 pm Comment from: Indy Mac

I'm wondering if it economically possible to do away with my traditional TV cable (or satellite which I'm considering switching to), and simply watch all of my TV shows through AppleTV - assuming they would have all the shows I currently watch in the iTunes Store (they don't as of now)... if I'm spending $60/month on cable, but I have about 10 shows I watch on a regular basis, at $1.99 ($8 per show per month)... I don't think it'll work. But in 2009 I could dump cable and switch to the digital bandwith over the air - that could work smile

Oct 22, 08 - 05:30 pm Comment from: poo

Mac Mini and Bittorrent! That and Remote Desktop to my Mac Pro attached via wired ethernet solves every one of the problems discussed above.

And to the other "poo"... I was here first, get another name please.

Oct 22, 08 - 05:59 pm Comment from: Buster

@Poo...register your name and we will know which is real Poo and who is full of it.

grin

Oct 22, 08 - 06:12 pm Comment from: Bob

No 8-track player, no buy.

Oct 22, 08 - 06:20 pm Comment from: TowerTone

Looks like 'poo' poo-pood 'poo's' place.
So wipe that smile off your face.
There was already a poo,
(that much we knew)

It seems a bad pun
But who is the real poo?
The first one,
or number 2?......

Oct 22, 08 - 07:49 pm Comment from: 84 Mac Guy

While Apple TV is not perfect, as everyone pointed out with their wish list of features, the real things holding it back are lack of entertainment choices at the iTunes Store and slow download speeds.

Apple is slowly addressing the first issue by adding more movies, including some fine independent movies and documentaries. However, what would be really nice are current HBO shows that people now pay their cable company to watch.

If I could download shows like Curb Your Enthusiasm or Bill Maher's Real Time the same week they run on HBO, I would say adios Comcast. Hell, I'd even pay for an HBO subscription through iTunes if it gave me the same HBO content that Comcast charges me $100/mo for currently.

Secondly, download speeds have to increase for Apple TV to take hold. It takes me about 4 hours to download a movie from iTunes, even though I have Verizon DSL. That means I can't stream and watch as I download. Maybe when FIOS is more widely available this problem will go away, but we are not there yet.

Of course, I could download faster by having Comcast deliver my Internet to me. But why would Comcast want to make it easier for me to avoid their $100/month extortion charge for using their cable TV service?

Thus, Steve's right. Until download speeds increase and entertainment companies like HBO are convinced they can make as much money through peddling their shows on the Internet as they can by being partners with slimeballs like Comcast, Apple TV will be just a hobby. Of course, it will also be a hobby for all of Apple TV's competitors--companies who don't have the kind of cash Apple does to support such an expensive hobby.

Oct 22, 08 - 11:48 pm Comment from: eon

All the AppleTV needs to make it fiy off of shelves is a built-in high-speed iPod/iPhone dock on the top and also the ability to stream iPhone game graphics onto the tv upscaled, with the ability to use the iPhone as a controller for said games as well as games native to the Apple TV. Bring it up to date with the new Nvidia graphic set and this should be a no brainer.

Oct 22, 08 - 11:52 pm Comment from: eon

More on my previous comment:

Allow Mac games to be purchased through the iTunes App Store as well as the MacOSX Applications button under the Apple Logo in MacOSX, Said games would run on MacOSX computers as well as AppleTV and purchase directly through the App Store through the AppleTV, data can be saved directly on AppleTV or on Time Machine Drive with a 3 or 5 machine (AppleTV's or Macs) load license. iPod touch or iPhone can be used as Wii style controller.

Oct 23, 08 - 02:30 am Comment from: poo

@TowerTone

You just pull that out of your ass, or what? confused

My "poo" got nothing to do with that shit.

Oct 23, 08 - 07:06 am Comment from: KillBill

It's the content folks, who'd give a crap about physical media if the content was always available and in a timely manner. NetFlix is so backward but it is the catalog that keeps them going not USPS technology.

The distributors are holding back AppleTV/iTunes by not releasing movies. It's not Apple that doesn't want Movie X or Movie Y—except maybe Movie XXX.
Why did Disney pull Pixar rentals?
Why are the distributors not releasing HD versions of their new releases?
Why can't I buy the content a day or so after release, some shows have no problem doing that but others wait a year for when the DVD series is released... guess what idiot distributor exec, I'm not watching the reruns on cable as I'm not a cable company customer...

Sure Apple could do some things better:
Why not let me add that trailer to Favorites, let me know when it goes to the cinema in my area, when it is released on iTunes, when I can rent it... and store it to my account not iTV so I don't loose all the favorites upon factory restore.

Sure I know 80% of the trailers would never get released to iTunes but Apple could keep those stats and use it to tell the jackass studio exec they lost this revenue, or better still tell the artists that the studio is not releasing there work to a potential buyer.

Please let me set the parental(consumer) controls to exclude censored versions so I don't have to put up with accidentally selecting the offensive version—yes I really mean what I wrote.

Sort out the menus better so after I watch a preview I don't end up back at the top of menu branch

Add a "You're still watch" menu branch so that those shows I'm part way through watching can be accessed in one place.

Add an "Unwatched Content" menu branch

Let me "rent to own" hey if I'm forced to rent that dang horrid Disney Barbie stuff more than the n of times it cost to buy I get the movie—parental relief if you will... or real family values.

IMDB access (or does Amazon control that)

Every time I select an actor or a director though the "other movies" it sends a message to that person saying "hey the jack ass distribution company is not releasing your content to a paying customer and here are the potential movies that your jackass distributor doesn't think you want to earn royalties on"

Oct 23, 08 - 12:14 pm Comment from: MacRaven

If it had a DVD slot that I could set a timer and record stuff off the TV that I don't have time to watch that day, burned right to a re-writeable DVD so I could use it over again each week, I'd buy one.

Oct 23, 08 - 12:33 pm Comment from: fatal

just build the ACTUAL TV with the Apple TV inside it. Have the ports to connect xbox, dvd player ETC. but put the Apple TV INSIDE the TV and sell it.

Apple builds Medium to Large displays already.

Oct 23, 08 - 02:34 pm Comment from: M@c

I was seriously considering getting an Apple TV, and now I'm not too sure!

Oct 23, 08 - 08:26 pm Comment from: David

Love my Apple TV - highly recommend it!

Oct 23, 08 - 09:30 pm Comment from: TowerTone

Finally got Boxee to recognize the folder that I put a movie in from Ripit. It stuttered a bit and then played fine. That means that I can put a DVD in my iMac and twenty-five minutes later, have it ready to watch without having to clutter up iTunes.

oh, and sorry about that crap, poo.....

Oct 23, 08 - 09:56 pm Comment from: bb

I love my AppleTV! Best $200 I have ever spent on tech.

Oct 24, 08 - 11:46 am Comment from: ralph from berlin

i have bought an apple tv the day it was available here in germany and managed to get me an us-itunes-account (because still no movies available here in germany) and i love it. but basically i have paid 250 euros for the opportunity to buy and rent tv-shows and movies from apple. that is as if my movie-store would charge me a fee for coming in. doesn't make much sense for a lot of people i showed it to. they loved it, the ui, the design, ease of use, everything. but all of them said they would never pay for that box. the business model is flawed.

so here is another idea:
why not integrate apple tv functionality in an apple-hdtv (an included innovativ one box 5.1. soundsystem like the YSP-900 from yamaha wouldn't hurt eighter). so you can hide the cost of apple tv and could still charge a premium over other hdtv-maker. no problem to sell such an (surely amazingly beautiful) integrated apple-hdtv in 42" for $1500 and 50" for $2000.

this would be a huge future market for apple. According to a report from Global Industry Analysts the HDTV market is expected to exceed 50 million units in 2008. and with only 10% of that market that would translate to anual sales of 7,5 bn. almost the fourth leg steve is looking for to finally have a real apple-chair.

Oct 25, 08 - 12:18 pm Comment from: KillBill

Just 'cause I critique doesn't mean I don't use my AppleTV. No Cable but do keep a fast internet connection.

Didn't bother re-connecting the over-the-air antenna, now I don't see any programs with interruptions and I can't get distracted by sitting and waiting for shows to start. What I miss out on is no skin off my nose and but they loose out on getting my dollars

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