Apple TV: More Hype Than Content Adds Up to a Set-Top Flop

This was a pretty informed commentary, actually. Steves jobs has been talking about the Apple TV since January 2007. In the mean time, he's referred to it as a pet project. It's indeed lacking in many ways compared to the Wii and XBox 360, which either offer web browsing from the box, or movie rentals already. They are in many more homes. The Apple TV is also limited to 720p and wide screen television. The Apple TV is mostly a satellite appliance to iTunes running on another Mac. It's been a lot of hype in the blog world, but in practice it's a big question mark. Many Mac users choose to use a Mac Mini instead of an Apple TV, because it can do more, including browse the web.

Can the game change? Does a monthly rental model ($20-$25/mo) with unlimited movie content make a difference? Does the ability to download TV shows free with advertising or product placement for ad revenue instead of watching broadcast TV. If I am able to watch TV without a broadcast signal, no need for a DVR. I can download a show at will. Without a cable company having to buy shows I have no desire to watch. Instead of receiving 100's of channels with nothing to watch. How about just downloading the one's I am interested in. Imagine a library of every broadcast show and movie ever made and you have access to download at will, 48 hours to view and then it's purged from the drive. Say goodbye to pirated DVD's, Blu-Ray, there's no need. Studios get constant revenue based on their share of a download market. What's not to like about that. I want the studio to make money so they can make more interesting content. Over several years. Yes, maybe I will pay for a given DVD twice in my lifetime. But, I don't have to worry about format wars/changes and I have access to all the content I ever wanted. I really don't want to buy show's or movies. It's just not like music where we listen to a song hundreds of times. I'd rather pay a monthly fee and view unlimited content. Apple TV can make this happen easily. So can other devices. It's a question of who can cook up the business deals to get it done. From my view point everyone wins. Advertisers get accurate counts of what has been viewed with their product placements/ads. Cable/DSL gets paid for their pipe. Producers immediately know their download rates, every week is sweeps week. No more shows will be killed going head to head in time slots. Yes, this is all impossible. Ask the cable company, HBO, Showtime, Movies studios, etc... But, before we throw out the Apple TV as a dud, I don't think the hardware is the problem. It's a question of the value in the content. If the business is structured toward what the consumer is doing. (Broadcast TV, Time shifting shows, downloading on demand, paying monthly fees for movies/sports channels, movie rentals, buying DVDs for multiple views). But, turning these into buggy whip technologies. Replaced by unlimited internet download at will for a monthly fee or ad based revenues via placement. The game changes.

Since the ROM refresh in January and the increasing number of movies available, I have been buying one to two movies a week, from a 99 cents oldies to a $4.99 HD movie. Just add popcorn, and save on gas and the $5 hotdogs. It IS working.

Jobs.....more hype than content adds up to not one apple made in America.....until that happens....the company is rotten to the core.

Blodget is correct in a large degree. I own the box and would use it more if it had web browsing more free content. I would also like to use it as an Itunes server for the house which I can dock my IPOD too. For us it becomes a video jukebox at parties that links to my server base Itunes and put all your music on an hdtv that guests can scroll through and pick songs. Hackers have added many functions that Apple must consider adding to make the device a grand success.

he's points are useless it is too soon to tell, the movie download just started and the AppleTV is still a work in progress they are adding features with every release

After all that, I think Apple TV outsells all the other connectivity devices. Some "flop". I'd like to see it "built-in" to a special edition Sony Bravia, or something like that. A colaberation might be good for Sony and Apple. Also, a Netflix style subscription service, where you get a free AppleTV with a 2 year subscription might be a good seller. I think it's just hard to get people to pony up any money to add "one more thing" to their TV sets.

"Why put out a product that sucks", asks Blodgett. I am getting tired of this kind of bashing of Apple from Blodgett and I hope that the SEC takes a good look at him. Also, he is using Yahoo's Tech Ticker to do it! YAHOO'S tech ticker - does that seem like a problem to anybody else? For those that don't know, according to Wikipedia: In 2003 Blodgett "was charged with civil securities fraud by the U.S. Securities and Exchange Commission. He settled without admitting or denying the allegations and was subsequently banned from the securities industry for life. He paid a $2 million fine and $2 million disgorgement but kept millions more he earned in fees while promoting investments in stocks which failed". http://en.wikipedia.org/wiki/Henry_Blodget So tell me, if he was banned for life from the securities industry, why is this guy talking about stocks on Yahoo's Tech Ticker? This is incredible!

I own the box and find it does what I expected. I download a movie I want to watch - often in the startling clarity of HD and after having first had the benefit of reviewing the trailer. There's other stuff; YouTube, ITunes juke box and so forth that adds value. The box is so inconspicuous and single cable (HDMI) hookup so easy its presence is not a problem. More web content is needed, and most importantly for me, close captions. The movies available seem to be stuffed with kid-humor content that I personally hate. There should be a separate category for these that one can choose to avoid ever seeing a reference to. An index of movies by title and/or actor would be a boon. Typing and searching for a movie is the pits. The cable company's like the silly 100s of channels push stuff you don't necessarily want to watch. Selection is the key rather than DVD player capability.

Blodget first off is the laughing stock of Wall Street. He bilked people out of millions with his no thought guesses on the market and should be serving time. As for the Apple Tv, I think it is pretty awesome. I can wirelessly stream any playlist from iTunes through my whole home speaker system or out on my deck when parties are going on. My wife and I rent a boat load of movies, and this is how we watch most of out TV shows now. We just buy the seasons and always have a huge selection to watch when we want to watch it. No commercials!!! Sitting and watching cable TV and wasting time watching commercials is like listening to a sporting on the radio. It will do if there is no other option, but if there was a choice, why not not watch it commercial free on your big screen.

I am not one of those "call now" guys. Or should I say I am not one of those "comment on story" guys. This was a slanted tilt to try to generate bad buzz for AAPL. Apple TV is not good, but it is no worse than a Comcast DVR for movie delivery. The overall point should not be so APPL Bombs, Henry, but should be that you and Dan still do not, nor do we, understand how such a great content delivery concept such as movies, games etc. on Demand has still remained under muscled for more than 12 years now. Why one would expect that on every product at every moment AAPL would hit a home run, especially in a game where it is hard to hit more than a bunt, rather than understanding the core strategy of AAPL. AAPL is an intergenerational player. The ideas are simple. Win the hearts and minds of the Tweens (iPod) and you win the next generation (gen exers) with your follow on product (iPhone) and eventually since they all use a Mac, you win the Corporate market. Apple TV is a side show much like the one eyed man at the circus. It is not even real. It is just Steve continuing to fantasize about his content delivery ideas....and some fantasies as we all know are better than others.

I really, really enjoy my Apple TV. Not driving to the video store is a huge plus. Not driving BACK to the video store is a huge plus. I've got about enough time in my day/night to only want to watch the best movies out there, which Apple TV has. This is an overanalyzed story by people who think 'more features' is always better.

Kaplkit, excellent comment. I am also completely incredulous about why Tech Ticker has Blodgett on. I've written in before, but I guess Arron Task is a friend of his. Anyway, I wish people running TechTicker would read these comments. I guess they don't really care. They must think it's controversial, and people will tune in to hear what the dishonest man has to say. Years ago, I really wanted to trust what Blodgett had to say, and I was naive and relatively new to investing. I lost alot of money.

New AppleTV with new software upgrade will be a game changer. I foresee an iPod dock, DVR and web function. BTW, Steve did not say that AppleTV was a pet project, but a hobby.

I'd like to second most of the above comments about Blodgett because, as always, none of them are positive. Blodgett, a la Nancy Grace, just wants to sensationalize. He is not professional, has no content to offer, and you don't even want to look at him as his mannerisms are as annoying as his interviews. Yes, Blodgett, Steve Jobs almost definitely has "brain rot" as you so insightly noted. Unfortunately, the only thing rotten is Blodgett. Yahoo should be ashamed for allowing their name to be associated with him.

This appears as a very biased "interview". Who is this jerk Henry Blodget? Why is he on Tech Ticker? Isn't Blodget banned from the securities industries?

I hope Apple is not listening to these guys, I own a apple TV & it already does what i want, am able to rent movies that just got release without goin to the video store, No i don't want hulu there to watch freaking commercials, i prefer youtube instead. Apple TV is a hit just watch & see, Netflix box sucks, it has unlimitted video streaming but it has no mayor studios onboard & the tittle offer are of movies no one has even heard of

Blah Blah Blah I shorted the stock, apple t.v. sucks, blah blah blah.

Apple products are made in China, but how many products aren't?

Oh my god....apple people and microsoft people agree on something. Henry blodgett is a moron. This guy is the most clueless individual on the planet. If he is short Apple he is buying put options on Microsoft.