• On last.fm: Find concerts in your area
February 11, 2009 11:16 AM PST

Apple survey prelude to Apple TV revamp?

by Tom Krazit
  • Font size
  • Print
  • 34 comments

Apple appears to be preparing to get serious about Apple TV.

Apple is fishing around for more information about how people are using their Apple TVs.

(Credit: CNET Networks)

The company's link between the computer and the big-screen television has long been considered a "hobby" in the eyes of Apple CEO Steve Jobs, at least when viewed against major projects like the Mac, the iPod, and the iPhone. But signs have been growing that Apple is thinking about making a more significant investment behind Apple TV.

The most recent tip was a survey that Apple conducted online on Tuesday, which has since disappeared from the company's Web site although was captured by AppleInsider. In that survey, Apple asked Apple TV owners a number of questions about the sources of video they are watching on the device, as well as asking owners to describe the one thing they would change about the device.

Apple TV's shortcomings are well documented: it can't play DVDs, it can't connect to your cable or satellite service, and it doesn't have a browser for accessing the millions of Internet videos that can't be found on YouTube. But sales have nonetheless picked up in the year since Apple decided to open up the device to movie rentals through the iTunes Store, instead of requiring owners to purchase movies.

During Apple's last earnings conference call, COO Tim Cook noted that Apple TV sales in its first fiscal quarter were three times greater than the quarter a year ago, without breaking out the exact number, of course. But he also said "... let me be clear. 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."

Connecting the television to the Internet and home networks in a simple manner is a dream that has eluded the tech industry for a very long time. More and more devices like the Apple TV and the Roku media player are taking a stab at this market with increasing interest from consumers, but no one seems to have hit on the magic combination of features, services and price just yet.

Once Apple gets the next big steps out of the way--the launch of Mac OS X Snow Leopard and a probable mid-year iPhone launch--tweaking the Apple TV might be a good strategy heading into the holiday season.

Last week, Piper Jaffray's Gene Munster wrote that Apple is planning on adding TiVo-like DVR capabilities to a new version of Apple TV later this year, and Sanford Bernstein's Toni Sacconaghi predicted Apple would find a way to incorporate the Tru2way software into a future Apple TV in order to let it communicate with cable networks. While the latter seems like a bit of a stretch--Apple often likes to go its own way when it comes to fledgling industry standards--opening up Apple TV to video sources other than just the iTunes Store and YouTube could make it a much more interesting device.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
Recent posts from Apple
Report: Apple accused of NAND price manipulation
What if: Apple Newton vs. Apple iPhone
Apple App Store collector's items: 10 rarities
iPhone officially lands in South Korea
Apple sues power adapter knockoff maker
Apple's 2009 Black Friday deals: All MacBook Pro models $101 off
Apple to Psystar: And don't get any bright ideas about a Black Friday sale, either
eBay launches holiday deals app for iPhone
Add a Comment (Log in or register) (34 Comments)
  • prev
  • 1
  • next
by sanenazok February 11, 2009 12:02 PM PST
Too little too late. Other media players are on the market. Without DVD and TV Tuner this isn't worth much.
Reply to this comment
by Norseman February 11, 2009 2:07 PM PST
I disagree. If AppleTV is meant to be a device that connects to the INTERNET (and it is), it doesn't need DVD or TV tuner. You can download movies, so why the DVD? You can download TV shows, so why the TV tuner? Besides, those functions are avilable in other devices from cable providers if you really want them. I'd like to see AppleTV opened up to get more internet content like Hulu or Boxee, like it does Flickr and YouTube now.
by rturner2 February 11, 2009 3:29 PM PST
I disagree also. I don't own an Apple TV, however, if it also offered a good web browsing experience, then I would be more temped. I don't think it needs a TV tuner or DVD player. Apple TV is about getting downloaded movies from my PC to TV. As for a TV tuner and allowing to record onto hard drive, I don't think it needs this either which would just increase the price - keep this feature out and the price down. Or have two models one with a tuner as I see some demand for this.
by ender21 February 12, 2009 6:41 AM PST
I disagree *slightly.* Norseman and rturner are correct in that more internet-based content is desirable, especially if it has less restrictions (24 hours to watch a movie once I press play? That's ridiculous). However, nearly *everyone* owns DVDs, so to suggest that they need to re-purchase any movies they're interested in just to have them integrated in with their AppleTV library will frighten off many consumers. The notion of keeping separate boxes for every service or medium goes against the Apple "all things to all people" strategy as well. I know I can find 3rd party software to rip my DVDs and then import them into iTunes, thereby making them AppleTV available. But the average consumer doesn't want to go through that trouble. Either integrate a slot-loading DVD ripper (blu-ray/DVD ripper would be even better but that's unlikely for now), find another easy way to do it via PC or Mac, or limit your market somewhat.
by enzoromeo February 12, 2009 3:21 PM PST
I think they would increase their sales if they included a DVD player, DVR capabilities and ability to go to other streaming sites like Hulu (maybe it does now? not sure). Like ender21 says, a lot of people have DVDs. I watch them to view the movie, but also to see the extra content like "Behind the scenes" or viewing with director's commentary. All the extra features aren't available when you just download the movie or TV show from iTunes. And I, like a lot of other people, do watch that content. I also download content from iTunes, but I also want to view my existing content without having to use Handbrake all the time. My current set up allows me to do this: I have an Intel Mac Mini connected to the internet and to my 50 flat screen HDTV. I use Front Row to listen to music, watch DVDs or view photos. I also download TV shows from iTunes so I can watch them without commercials. I'm happy to pay for that. I also can go into Safari and watch Hulu programs or YouTube. Its all good. I can also set up my Mac Mini to be a DVR. Apple is in the business of selling hardware, if thats what the users want, they'll sell it. I think there is a misconception that if they add on a DVD and DVR capability to AppleTV, the iTunes store will loose money. I think with more users, they'll increase sales in that area too.
by tgrenier February 11, 2009 12:03 PM PST
It seems to escape lots of people that a huge number of people already have a computer hooked up to a TV. Cable boxes and satellite receivers are computers. It's just a shame that they are controlled by the providers who have no interest in expanding their capability. I'd love to see Microsoft or Apple buy DirecTV and make something really special out of the box I already have. Cisco makes many of the boxes now and I think they're a great company, but would prefer to see someone else use those boxes as a foot in the door of our living rooms.
Reply to this comment
by mattack February 11, 2009 3:27 PM PST
Uhh, Tivo already *has* made third party boxes. Currently they work with cable, but a new DirecTV/Tivo box is supposed to come out this year. But for example, current Tivos replace a cable box, and offer vastly improved functionality. (But you don't need cable, you can use them with OTA too.)
by billmosby February 11, 2009 12:13 PM PST
I wouldn't bet too much on the proposition that it's "too late" for Apple in very many markets. There have been a number of contraindications of such a betting strategy!
Reply to this comment
by tgrenier February 11, 2009 12:14 PM PST
They did come to the MP3 player and cell phone market rather late didn't they?
by toosday February 11, 2009 12:13 PM PST
Apple has to step up their game.

Roku and other boxes are looking far more compelling to those who know them and they're getting great word-of-mouth. Oh, and they're cheap.

Also Boxee is still in alpha, I believe, and it allows you to stream your iTunes music, other television websites (i.e. Hulu, CBS.com, TheWB.com) as well as browse Flickr.

Granted, Apple TV looks sleeker, but it's far behind in the feature department.
Reply to this comment
by kevsaenz February 11, 2009 12:25 PM PST
It seems the COO lacks foresight, and understanding of the market place. It's quiet insulting to any product to consider it a hobby. What should prospective consumers think when they are considering their options. Bring back Steven Jobs cause the other guy is an idiot.
Reply to this comment
by camp88 February 11, 2009 12:39 PM PST
You don't have to bring back Jobs, this "hobby" position is exactly what Jobs has said himself:

?I think the whole category is still a hobby right now,? Jobs said, in response to an analysts question about Apple TV. ?I don?t think anyone has succeeded at it, and the experimentation has even slowed down lately. Some of the people who were doing some things in that area have sort of faded away.?

?Given the economic conditions and the VC funding outlook, I think it will continue to be a hobby in 2009,? added Jobs.

So is Jobs also an idiot?
by kelmon February 12, 2009 3:57 AM PST
Tim Cook is no idiot, that is clear. Just don't expect to see him doing keynote presentations.
by zipityzap February 11, 2009 12:39 PM PST
"Connecting the television to the Internet and home networks in a simple manner is is a dream that has eluded the tech industry for a very long time."



??NOT?? It's really very easy. And you don't need an expensive box like the Apple TV. All you need is a $25 cable. It's a lot easier on a PC. Some Macs just don't have the proper connections. Maybe Apple likes it that way.
[CNET editor's note: Prohibited spam deleted.]
Reply to this comment
by random truth February 11, 2009 3:40 PM PST
You dont need an $229 box like the apple tv thats too expensive. You need a $600-$1000 pc that is about 4 times bigger. How does that make any sense?
by Hey_Radar February 11, 2009 7:39 PM PST
I've been using my old computers (~1GHz) to connect to TVs. Of course I'm not trying to play Blue-Ray either. But I'm able to play DVDs, MPEG4 and Hulu without any issues. My stand alone media extenders periodically have issues with a video file.
by perontopsp February 12, 2009 6:22 AM PST
@ random truth

But guess what right now don't you kinga need a computer to even use the Apple TV, so zipity zap makes sense, you are retarded though. Don't be so quick to jump in and directly insult somebody unless you have something that actually makes sense. Just calm down
by kcotham February 11, 2009 1:22 PM PST
All those things that the Apple TV can do, can be done with a Macintosh. Actually the Macintosh can do all the things people want the Apple TV to do also. So, in order for the Apple TV to take off, you need to differentiate the two platforms more. Is the Apple TV a neutered Mac? Or is the Mac what the Apple TV wants to be? Drop the price of the Apple TV, make it capable of playing DVD's, enable DVR ability with cable, and you've got a winner!
Reply to this comment
by The_happy_switcher February 11, 2009 1:28 PM PST
I guess, assuming you don't mind watching movies on a 24 inch screen instead of 50+ instead.
by dpetrosky February 12, 2009 2:09 AM PST
What are you people 60 and can't wrap your head around online video distribution? You need to re-think the way you consume video and understand that we are still about a year out from this all coming together. Why would I want a DVD player when I can use HandBrake to copy the movies into my library and easily watch them on any TV in my house, any computer in my house and any iPod/iPhone i own? Why would I ever pay a premium to purchase a DVD ever again?
AppleTV today is exactly what it was intended to be. The DVD player of the future with some new media access built in too (podcasts and youtube). The only thing holding it back is better agreements with the studios and that appears to be coming together. Already the movie selection rivals any brick and mortar stores and the catalog is growing quickly.

I love my AppleTV!
by kcotham February 19, 2009 6:46 PM PST
Handbrake is not stable. Use MacTheRipper.
by usualsuspect87 February 11, 2009 1:57 PM PST
i'm getting one soon so i can run xbmc, boxee, stream itunes over airtunes, etc. I think the current device and it's capabilities are pretty great.

It'll sure look a hell of alot better streaming movies over hdmi than my current s-video setup.
Reply to this comment
by crescentdave February 11, 2009 2:52 PM PST
I'm appreciating the ability to stream rentals from Netflix. Love the direction the pc world is going ... lots of different choices. I'm understanding boxee might break things out a bit for the apple platform, which would be a very good thing, indeed. Frankly, Jobs called it right when talking about Apple TV- it is a hobby. There's a hell of a lot more serious projects out there right now.
Reply to this comment
by tamdolan February 12, 2009 12:07 AM PST
certainly TV on computer is the way forward and there are lots of good companies out there. One of them Blinkx.com seems streets ahead of the rest, and I know they were doing business with Apple a few years ago, and rumours persist that they are currently in talks to bring their software to the ipod. you should check out the site. Of course if Apple are serious about this, they could always takeover Blinkx
Reply to this comment
by kelmon February 12, 2009 4:03 AM PST
There are 3 things that put me off the AppleTV at present:

1. It is too expensive for what you get, particularly when you are going to be paying money to the iTunes Store to buy content for it.

2. Films are not available to rent for it quickly enough - they need to be inline with the likes of Blockbuster's stores.

3. Films that were available one day may not be available the next due to these bizarre "exclusivity" deals despite the fact that you can rent/buy them from a "bricks 'n' mortar" store.

I really am not bothered about the likes of DVR or DVD playback simply because I have devices that already do this quite nicely and therefore I don't want to pay for functionality that I already own. Rather I just want the AppleTV to do what it is meant to do better than anything else and at a reasonable price. It's just a shame that Apple won't let me tell them this because I haven't already bought an AppleTV.
Reply to this comment
by s70fixer February 12, 2009 6:45 AM PST
I know the Apple Fanboys are gonna jump my case for posting this but...
My XBox streams Netflix to my 37" widesreen in HD.
My XBox streams from my Windows Homeserver
My XBox streams from my Windows Media Center 2005 (which is connected to a 52" widescreen)

I considered the AppleTV way before I considered the Xbox. But once I read reviews (in 2006) on what the Apple TV couldn't and still can't do, I built my Media Center. The Xbox was purchased later to allow a second TV to connect to the Media Center's content. Once the Media Center's content became seriously large, I built the Home Server (2.5 Terabytes of storage).

So if AppleTV would have been a blockbuster right from the start, think of all the time and money I would have spent on building a Mac-centered or Mac-themed home entertainment network. If Apple would have treated the video streaming idea less like a hobby, perhaps they would have sold more Macs to me as I supported my "hobby". The "hobby" attitude cost Apple thousands of my dollars (which went to Newegg & M$. No hard feelings Apple ;)

FYI...I own ZERO Xbox games, I bought it only to stream video. Now the Xbox fanboys can hate on me too!
Reply to this comment
by ducttape36 February 12, 2009 6:53 AM PST
i considered doing that, but i just have my computer hooked up to my tv and use windows media center straight up. nothing will ever beat media center as far as im concerned, killer guide, games, movies, videos, pictures, music, endless plugins for things like netflix and weather etc. i love it
by pairof9s February 12, 2009 7:06 AM PST
Yes, but I'd add that you've also spent quite a bit of money and added a lot of hardware to achieve this success compared to an Apple TV. As I read it, you have a PC, a XBox 360, a home server box, extra hard drive space and numerous software upgrades. Not to mention the time & expertise to put this all in place.

Now, I'm not knocking what you've achieved, but there is something to be said for a single box at a single price allowing you to rent or buy movies/shows directly through your TV (as well as other types of media).

/
by tcr071 February 12, 2009 8:18 AM PST
The Apple TV won't even come CLOSE to doing everything he listed he can currently do with his setup. That is the reason why he didn't buy an Apple TV. Apple TV doesn't have 2500 GB of hard drive space, doesn't come with a computer (which he was going to buy/build regardless), and doesn't come with a home server. Most importantly Apple TV doesn't give you the ability to stream netflix HD content straight to your TV which the Xbox 360 does.

There is something to be said about a single device that does all of the above but that single box most certainly is not the Apple TV.
by s70fixer February 12, 2009 9:01 AM PST
pairof9s,

Yes, I've spent lots of money. All hardware and software were standard 'off the shelf' PC parts and M$ OS's. There weren't 'numerous upgrades' so to speak. Like I said in my post, if AppleTV had been able to do what the Xbox or Media Center can do, I would have went with AppleTV. Heck, I would have populated my whole house with AppleTVs if that were the case. But Apple and AppleTV fell short. So I live in a M$ house, because of AppleTV's shortcomings.

I agree with your comment about a single box solution. My Xbox is my single box for movies/tv via the internet. A PC is not needed for this function. My setup, with a server and Media Center PC, is to enhance the media available to my single box. Just like a Mac would be used to enhance an AppleTV streaming scenario.
by tcr071 February 12, 2009 8:22 AM PST
I am very confused as to why the ability to rent unbelievably overpriced movies from iTunes has actually increased the sales. I am hoping/praying that this is a mere coincidence and there actually aren't that many idiots out there paying $3.99 per movie rental.
Reply to this comment
by analoguecomm February 12, 2009 12:40 PM PST
Let me start off by saying I'm a mac guy. My setup is 3 apple TV 160gigs with a Time Capsule running 802.11n and 2 1tb drives connected via usb2.0 and fw800. I've always liked the apple tv for it's very simplistic navigation and slim profile. s70fixer if you had looked at some of the ways that people have opened up the functionality of the apple TV you would see that everything you wanted and more could have easily been achieved with the Apple TV thru Boxee and other very simple to install modification programs. The apple TV absolutely does not need a DVD player or ripper. Almost any movie can be ripped via handbrake or obtained through other means ;) The things that I would add to the apple TV would be the option for a larger drive (start at 160, 500gig, 1tb), an app store for apple tv so functionality could be added easily by developers, all the current functionality of boxee (buy the team with that warchest you have apple), and an infrared or whatever port so that you can add things like a wireless joystick, keyboard, or other peripherals.
Reply to this comment
by lhill11 February 14, 2009 10:50 AM PST
I disagree as well, people need to move away from the DVD format and embrace viewing from the interview. I don't support Blue Ray either. I had an Apple TV for two weeks and returned it only because I saw that the new one was only $100 more for a much larger hard drive, Best Buy, unfortunately does offer the larger sized hard drive. i would like the Apple TV to offer a subscription service but the wonderful thing about the iTunes store and Apple TV is you have an option, I can watch in my home or on the go with my laptop or iPhone. The Roku device much like the watch instantly option with Netflix only offers movies either you've seen years ago or would never want to see. You are stuck with home viewing with Roku and basically computer viewing with the watch instantly option. If you attach your laptop to your LCD television images are poor and the sound stalls. Keep working Apple you have not failed me yet. I fell in love with the your 17" PowerBook at first sight and I've been loyal every since our first encounter. I eagerly await the new 17'MacBook Pro. (Its not available in stores in my area)
Reply to this comment
by Azzuro10 March 9, 2009 12:09 AM PDT
You can buy a DVD player for peanuts, your TV or cable company has the tuner - so I don't think that needs to be changed. The only thing I would find useful about a DVD player is if it could rip your existing DVDs and store it - aghhh but thats illegal. The Apple TV hardware is all it really needs to be. The software needs to be updated to handle more media formats and its all about content and refining the robustness of its user interface and controls. I am not sure whether you can plug in a bigger hard-drive via its USB input - if it can, then i have no probs with its existing hard drive capacity either. But yes, extra USB inputs would also be nice - particularly at the front.
Reply to this comment
(34 Comments)
  • prev
  • 1
  • next
advertisement

Inside the Apple, er, Microsoft Store

Although Redmond's foray into retail bears a big resemblance to Apple's approach, Microsoft has added some distinctive features to draw casual PC buyers and techies alike.

Big marketing budget drives Moto Droid sales

Verizon and Motorola are spending big bucks--$100 million--on marketing the new smartphone, and it looks like it will pay off with 1 million devices sold by year's end.

About Apple

At the start of the 21st century, there's no tech outfit more influential than Apple. CNET News' Erica Ogg and other reporters will attempt to make sense of the rumors, hype, products, and people that will shape the future of the company. But Apple's not the only game in town, as the established cell phone companies and others strike back against the iPhone. E-mail Erica at erica.ogg@cnet.com.

Add this feed to your online news reader

Apple topics

advertisement
advertisement

Inside CNET News

Scroll Left Scroll Right