What about the Apple TV, Steve?

Can a product's value be measured by how much its developers improve it over time? If so, that metric would not have positive implications for the Apple TV.

Apple quietly updated its Time Capsule storage device Thursday. The high-end model will now retail for $499 and allow up to 2TB of storage. The low-end model with 1TB of storage will now retail for $299.

The Apple TV is in desperate need of an update.

(Credit: CNET Networks)

It's a nice upgrade. And it follows a list of several updates Apple has made in recent months to many of its products, including the iPhone, MacBook, and MacBook Pro. Apple is even preparing for its new operating system, Snow Leopard, which is slated for release in September.

But the company has yet to release a major upgrade to its Apple TV. Granted, Apple has updated the device's software on multiple occasions, but where's the new, major hardware update?

For almost a year now, we've been hearing about impending refreshes to the Apple TV.

In September, reports suggested that an Apple TV update featuring anything from a "Mac Mini/Apple TV" hybrid to something related to HDTVs was imminent. Nothing of the sort was ever announced.

In February, reporters found a survey that Apple conducted asking Apple TV owners how they were watching video on the device. It also asked them what they would change about the set-top box. That survey vanished from Apple's Web site. And once again, no major updates were released.

Just one month later, in March, an Apple patent surfaced showing a controller similar to the Wiimote controlling what looked to be an Apple TV. The filing discussed a "remote wand for controlling the operations of a media system." Gamers were hopeful that it would lead to gaming on the Apple TV. Unfortunately, we haven't heard anything about it since.

As an Apple TV owner, it's disappointing to see that Apple hasn't focused on improving the device. Granted, CEO Steve Jobs said it was a hobby device, but I think it has some real potential to be more.

According to Apple COO Tim Cook during the company's first-quarter fiscal year 2009 earnings call, Apple TV sales tripled compared to the company's first fiscal quarter of 2008. He then hedged his statements a bit by saying Apple still didn't want to give those figures too much importance.

"Let me be clear," Cook said. "We still consider this a hobby. It is clear that the movie rental business has really helped Apple TV, and there are more and more customers that want to try it."

Perhaps Cook is selling the Apple TV short. Piper Jaffray analyst Gene Munster said after the earnings call that his company expects Apple to have sold 6.6 million Apple TV units by the end of 2009.

That's no small number. If there are 6.6 million Apple TV units in homes, that could mean significant revenue for Apple, in terms of sales of music, television shows, and movies. The Apple TV might be a valuable component in Apple's strategy, going forward.

That's precisely why it needs a major update, complete with gaming, Web browsing, and maybe even some DVR features. Wouldn't that be enough to get you to pick one up?

After the release of Snow Leopard in September, I'd like to see Apple shift its focus to the Apple TV. The iPhone is a success. Its notebooks are still popular. But it's the Apple TV that has yet to gain the mass-market appeal Apple enjoys in so many other sectors. I think it has a real chance to enjoy that kind of success with the Apple TV.

Ironically, Apple might agree.

"We're going to continue to invest in (the Apple TV) because we fundamentally believe there is something there for us in the future," Tim Cook said during Apple's first-quarter earnings call.

I hope so. But at this point, I'll have to see some investment before I can believe Apple that will ever consider the Apple TV more than a hobby product that doesn't need refreshing.

Check out Don's Facebook profile, Twitter stream, and FriendFeed.

[-fjtorres-]

"That's precisely why it needs a major update, complete with gaming, Web browsing, and maybe even some DVR features. Wouldn't that be enough to get you to pick one up?"

Add those things (which don't come for free) and you turn Apple TV into a current-gen gaming console.
That's a market with 50 million Wii's, 30 million Xboxes, and 20 million PS3s (give or take a fanboy or three). Throwing the 6 million strong AppleTV into that market *now* is begging to get roasted.

Methinks that when Mr Cook says there is something there in the future he doesn't mean next week or next year but more likely 2011-2012 when Apple could pop in at the tail end of the current-gen and claim first-mover intitiative with the next wave of consoles.

Move in that time frame and they could carve up a high-visibility slice of the market; move now and nobody notices.

Also, Apple needs to update their tech if they're going to play in that arena; the waggle-wand patent only gets then to where Wii was three years ago; by next year they need to move to something more sophisticated if they want to play in that game. (Hint: project Natal).

Apple doesn't like to be seen as playing catchup and anything they do with AppleTV today will be exactly that.
They need a clean sheet product circa 2011+ that they can portray as a leapfrog.

[Renegade Knight]

Nice analysis. they also need to stick a BD player in it.

Unfotunatly Game Consoles that do most of that now, are useful now. This thing is mostly useful later. All the consoles suck at doing all they can do at least medium well. If Apple gets it's game on, and does all these things medium well (adding most since they are mising a lot) They have some potential.

Right now the media abilitiy of most consoles sucks relative to even a cheap PC so there is room for Apple to come in that door IF they can get it right. Needing to hack the console to make it work like it should is no way to do it.

[pithenumber]

@RK
Sony used BluRay and look where it got them

sorry, I'm sticking to DVD until everything can be downloaded [legally]

[DarkerRaul]

One thing the Apple TV really needs is the ability to stream music to other Airport Expresses without using a computer. Its a great device for watching movies and such, but what about when you don't want to turn your tv or computer on to listen to music. You can control it from your iPhone, but if you have Airport Expresses around the house with stereos attached you need to stream from a computer. It would be direct competition with the Sonos Music Server and I think it has more potential than Sonos. Plus, all it would need is a firmware update to work.

darkerRaul - AppleTV *does* stream to Airport Express without using a computer.

[DarkerRaul]

Anyone know how then? I could never get it to work.

[Winniroo]

That is a great idea. I hope it can be done with my existing Apple TV hardware.

[sting7k]

Don, do yourself a favor and forget about the Apple TV. I know you have an Xbox 360 and a PS3, they both do the exact same thing and in addition to that you can also do at least 40 other things with those. Apple TV is lame.

[Vegaman_Dan]

I like the Apple TV. The interface is very nice, and I like how it plays so many formats, however it takes a third party hacking app to really open it up to being useful.

All that said, I like my Tivo even more. If I could merge the Tivo and Apple TV together, then I'd buy one on the next paycheck.

[seanbrown05]

Then I guess you're getting one next paycheck then. The August 2009 issue of MacLife details how to do that and more.

[Winniroo]

OMG, off to buy MacLife.

But tell me, can we use ATV as an external HD for other kids of file storage?

[cvaldes1831]

I think the Apple TV needs a whole new operating system, one optimized for devices larger than a handheld (like iPhone/iPod touch) but not a full-blown desktop/notebook computer. This mid-tier OS would have a development environment to allow programmers to extend functionality.

Would this same OS be something that would power a tablet-like device? Maybe it would.

In order for all of that to happen, Apple really needs to wrap up OS X 10.6 Snow Leopard, finalize the mid-tier OS, and then provide a toolkit. My guess is six months, early Spring 2010 hardware release, perhaps around the same time as this purported tablet device might show up.

Should the hardware change? Perhaps it should. Apple's margins are not large on the Apple TV, and I'm thinking that costs could be reduced if they switched processors and some other components.

In the end, it's all about the content driving people to buy the box. Something like a Hulu plug-in on a newer extensible operating system might do the trick.

[dk jones]

i agree, the Apple TV needs to be able to do/offer more but, it's sort of a legal & tech jungle for Apple & its device to navigate-- can't offer automatic link to Hulu, its content providers don't want people watching the service on their TVs(stupid content providers-many of us already do w/ a 'puter connected to our TVs using a browser or an app such as Boxxee/Plex/XBMC). it wouldn't be in Apple's interest to offer Netflix or Blockbuster but, maybe iTS could offer some sort of subscription service for movie & TV show streaming for a monthly or annual fee or even as part of MobileMe(just throwing MobileMe into the mix). as to a tuner & clock for use as DVR, it would need a bigger HDD & most likely payment for licensing the technologies-don't think Apple wants to do that either, one reason-too many DTV codecs/standards to support globally & i'm sure there are more reasons/issues. a couple of other considerations 1- they pay a fee for HDMI & 2- the HDMI standard is changing rapidly(2-3 point versions in just a few years, w/ more advances coming). they certainly could add a browser, but there again, they get the Hulu content providers upset, who might foolishly pull their content from iTS. it seems that right now the Apple TV is between a rock & a hard place as to its development & use. but certainly Apple could place bigger HDDs in the device--starting @ 160GB & 250GB or maybe 250GB & 320 GB would be better. i do hope Apple makes it into more than what it is currently, it could do/offer more than it does.

[maneeshpan1]

There is a simple solution to the problem of content companies not wanting easy access for users to access sites like Hulu from the TV without Apple adding a Hulu Channel (Boxee tried having a Hulu channel but Hulu took steps to thwart Boxee from offering the feature) that is to include a web browser with Apple TV namely a version of Safari most likely for Apple TV as there is a mobile version of Safari for iPhone & iPod Touch in addition to the ordinary Mac and Windows versions for Mac and PC computers -- offer a web browser for Apple TV users and if Hulu doesn't want Apple TV to have a Hulu channel users can browse to Hulu's site and just access content from Hulu within the browser.

[BusterNutty]

I do not want HUGE DRASTIC changes, but updating so I do not have to unplug and replug it in ever other day would be nice. Better yet just give me a remote which has a reset button. Over this crap from Apple. I bought this and discontinued cable service to save $$. Inconveniences almost makes me want to spend more money on something that works.

[Norseman]

Also have ATV, and can't relate to your "unplug/replug" problem at all. Admit it--you just like to watch that cool startup screen, don't you?

I kinda like ATV as is, which puts me in the minority, I guess. It isn't meant to be a TiVo or DVR. It's a web-only device. The only thing on my wish list is access to more web sites like they have with Flickr and YouTube now. My favorite thing is to look at my digital photos on HDTV. Very, VERY cool. Almost better than that startup screen.

[Heebee Jeebies]

Sold my Apple TV to another sucker months ago. Apple really missed the boat with this one. With all of the free movies and TV out there on sites like Hulu and the lack of support for Netflix and Apples insistence that any thing but Podcasts and movie trailers cost you money they will killed this sucker.

It should have been updated to allow access to Hulu, Netflix and other services that were free. It should have done better streaming of video, music and photos from your computer than what it does. And it should have had a better interface and Apple really needs to fix up that sucky iTunes software.

So now I use an Xbox and a PS3 for all of my video streaming, Netflix access, hulu access and more. Brilliant, everything Apple TV should have been, could have been but wasn't and everyone thinks Apple is the cats meow. More like hocked up hairball.

Robert

[David Dudley]

My favorite aspects of the AppleTV are the insanely slow and laggy interface and the lack of updates. I think it's a hoot that Apple has added a really cool feature called "button click stacking" where you can queue up a number of remote button clicks and 30 seconds later they are executed.

Seriously, why the hell did Apple ship a device with too little ram and make it totally impossible for a user to upgrade it? I was part of the Apple internal beta and that was the first thing I noticed butit was shipped out anyways in a slow state and it has only continued to get slower and slower.

The thing that the Apple TV does incredibly, incredibly well is act as the coolest way to integrate my families photo library to an HD TV. Coolest way ever... As with most families - we print few photos but take hundreds every month - sometimes more. The ATV ensures we see those photos without doing anything at all except connect our camera to the home iMac.

What doesn't happen today is for it to show our little movies from our Lumix, Exlim or our Flip by default. We have to mess about and copy them into iTunes (and convert the Lumix) before they're playable on the ATV.

Personally - I think Apple should make it VASTLY easier for folks to share their own memories on the ATV instead of focusing so much on the rentals/sales side. That way families will already be using it regularly and have them - then they can add rentals and purchases later. Much like the iPod is primarily used to play mp3s that have been ripped from our own CD's, not for purchased music - at first...

Aaron Booker

[Kingsdale]

My muse.. It is a hobby until the implementation of the 4G (LTE, WiMax) networks. Think about it. With speeds up to 60 mbs in tests this year, soon we will not need DSL or cable modems. And how handy it would be to pick up your iPhone and choose what movie you want and watch it in HD on your TV because of the AppleTV. Apple does not sit on a product without reason and the next year could see wild changes in how we receive our data/TV. Satellite TV(Dish and DirectTV) will have to change there marketing strategy. Satellite radio is already jumping on the iPhone.

[libertyforall1776]

Better off getting a Mac Mini with Boxee or Plex, but Apple is overdue adding Blu-Ray and video input standard for piping Over The Air broadcasts through the computer... They used to have A/V inputs standard on Macs -- remember the 7100 AV?

[maneeshpan1]

Number 1 thing I would like to see on Apple TV are apps for Apple TV with an Apple TV SDK issued so third party developers can write for Apple TV and have their apps delivered even via the existing App Store for iPhone & iPod Touch users. Also integrating App Store with Apple TV as is the case on iPhone % iPod Touch so you can buy/download apps straight to Apple TV. This way we can get some download-able games for Apple TV among other great applications.

[ColinMcGraw]

I agree. What Apple TV really needs is an App Store to support various ways of getting content and games to your TV. I don't know if Apple would ever allow a Hulu app, but it would be neat if they did.

[ColinMcGraw]

I think those claiming the need for DVR and Blu Ray miss the point of Apple TV.

DVR means paying for cable (usually), and going through the effort of scheduling a recording, waiting for it to happen, then eventually watching it. It's a bit of work.

Blu Ray rentals in particular require that you drive to a video store or wait days for a physical disc to come in the mail before you are able to watch your movie. Then you have to worry about returns!

Apple TV, on the other hand, is all about on-demand downloaded content. It doesn't matter that I forgot to schedule a recording, I have the TV show I want available at the push of a button!

Likewise, I don't have to drive to the video store in the snow to get my movie, I can plop my butt on the couch, press a button and the movie starts in a few seconds!

Plus, I can sync my purchased movies and TV shows to my iPhone and watch them wherever I go! I'm not going to carry 10 Blu Ray discs wherever I travel, but I always have my iPhone, and use it to watch videos all the time!

On-demand content is superior to both physical disks and scheduled recordings, and I think the Apple TV would take a step backwards to implement features to support those older ways of getting your entertainment.

[Norseman]

I agree completely, Colin. ATV seems to be misunderstood by quite a few people. They want ATV to be a do-everything video box, but that's not the idea. It's not meant to be a time-shifting mechanism for cable/OTA content. That's what DVRs are for. It isn't supposed to be a BR player. That's what BR players are for. But as a web-based, on-demand content source, it's great. And for do-it-yourself photos and video on your computer, it provides a super easy way to get those to an HDTV.

[superswiss]

Well, you might miss an equally big point. While there are certainly people who are looking at ATV as a cable TV replacement, there are equally if not more people who don't want to give up their cable TV, because they are watching the news and/or sports and don't wanna pay for watching TV shows that they already get via their cable subscription at no additional cost. Those people look at something like Tivo and notice that with Tivo they can rent movies online, too, or view their pictures on their HDTV. There's nothing ATV does that a Tivo doesn't already do and Tivo provides full DVR functionality for their cable subscription.

As far as online movie rental goes, I just have to say this. The equation for me doesn't add up today. Pretty much all services today charge about $3.99 to rent a movie. How come I can rent the same movie for just $1 at any Redbox? I have three Redbox vending machines within 2 minutes of my house and it never snows around here. Why would I pay 4x the price, when I can reserve the movie on redbox.com, hop in my car, drive 2 minutes, swipe my credit card and take the DVD. Returning is even simpler. I can just go to any Redbox and return the DVD. I have access to several online movie rental services through media center and my PS3, but I just can't get myself to pay $3.99 for the so called convenience. It feels like the convenience charge at Ticketmaster and the extra charge they slap on if you decide to print the concert tickets at home. Why do I have to pay Ticketmaster if I actually save them money, by using my printer and paper to print the ticket. That's what paying $3.99 for a movie that costs $1 otherwise if I'm not too lazy to drive to the next grocery store to pick up the DVD feels like.

[Winniroo]

Ditto what superswiss wrote. Apple has massive economies of scale rentin g downlods, so why charge $2.99? I don't have cable so I have dvd, vhs, and Apple TV. I am starting to buy old movies on VHS at garage sales because it is cheaper than renting from Apple.

If Apple would do Netflix-like subscriptions, or all downloads $1, they'd get my dollar every night, probably. As it is it's become a guilty pleasure.

[sgrmba]

I looked into Apple TV as a serious replacement for cable. I was dismayed that Hulu opted to block access to Apple TV (which was utilizing Boxee to get to Hulu). My 'guess' would be that the cable companies pressured the networks that have partnered with Hulu to cut the access because they knew that the device was attached to the TV. Even without Hulu it is still a great possibility but until the download speeds in a lot of the smaller cities can support it, it isn't worth it. In my small city it takes hours to download a standard movie for rental. That isn't dialup either - that is DSL. The cable company in this area throttles the connections after the first 10-20 seconds of a download and takes 30+ hours to download a free video podcast. Long story short - this isn't just Apple's problem of not updating the device. Why should they invest lots of resources into a device whose value will be short-circuited by the other companies in this equation have such a tremendous impact?

[Rod Roddy]

It's hit or miss with Apple, and no "in-betweens"

iPod - Hit
MacBook Air SuperDrive - Miss (have you seen that thing next to a MacBook Air?)
iPhone - Hit
Apple tv - _ _ _ _ (go ahead fill in the blanks...it starts with an M)

[cdog2061]

if apple gave the appletv some dvr capabilities this would be sitting next to my tv right now but i think it would be very interesting if they added gaming capabilities bc apple could definitely make some waves

[jayman978]

Save your money and buy a mac mini and run Plex Media Center on your TVs. Not only will it play every codec you can throw at it but 720p and 1080p content as well without the need for additional plugins or hacks. It can read your iTunes and iPhoto libraries right out of the box as well. There are also over 100 online content plugins that can be accessed from inside Plex - including Hulu, cnet, CNN, Netflix, Fox News, etc and many international plugins for non-U.S. users. You can operate it with your apple remote, keyboard or favorite remote Harmony remote. In addition there is an active friendly development team and user forums that are always willing to help out. Yes it is more expensive than the appleTV. But the extra functionality makes it totally worth it.

[BenzTech]

I agree. I had an aTV. Even hacked it to run Boxee and XBMC. The processor can't support Netflix streaming, and even playing content locally had problems at times. I picked up a refurbished Mini and three Plex on it and have been incredibly happy with it. Put the aTV in the guest bedroom, so it still gets used every now and then, but thank goodness I'm not relying on it for my living room content.

[originalbitman]

I bought an AppleTV a year ago. Canceled cable 6 months later. I'm 60 years old and retired. My wife and I use the AppleTV to watch network evening news video podcasts... this is the way to get the news on demand and for free. We watch a lot of other podcasts and some YouTube. We rent all our movies from iTunes and buy a few and rent a few TV show seasons.

BTW - it took only 4 months of cancelled cable to pay for it.

[SpiritWater]

I wouldn't buy the AppleTV simply because it is way too expensive. At most it is worth $50 to manufacture for the 40Gb version so a retail price of $129 would be more appropriate. For $229 I'm sticking with my Wii and someday the Wii will be getting NetFlix. The Wii and NetFlix is good enough.