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Old Sep 7, 2010, 06:53 PM   #1
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I think I get Apple's Strategy with Apple TV

I think Apple had two big reasons for pushing this update out with a low price and limited features. First, it needs leverage with the studios to get more content at low prices so it needs a lot of users/renters. Second, it wanted it out before the launch of Google TV.

I've been reading the complaints about the lack of the hard drive and app store. The hard drive is easy to explain because of the pricing strategy. Include it and the price goes up, especially considering the size you'd need for a large library. Also, central storage really makes more sense anyway for people who are serving multiple Apple TVs and IOS devices. Lastly the bulk of the population that Apple wants to buy this couldn't care less about local storage because these are the same folks who are still going to the soon-to-be-bankrupt video store to rent DVDs.

As for the lack of apps, there could be two reasons. The first is just marketing strategy to save it for future updates. My guess though is that Apple is already pricing this thing as close to cost. It doesn't want to release a product for that low a price that might cannibalize sales of the other IOS devices. Add an app store and for that price some might look to it as an iPad/iPod Touch alternative. If this product succeeds and drives iTunes sales then it makes more sense, but the last thing Apple wants is to hurt sales of proven products with something that might fizzle if the studios and renters don't pan out.
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Old Sep 7, 2010, 07:06 PM   #2
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I think you got the first part probably close to 100% right.

For the lack of apps, I think as another poster here posted, you need to read between the lines. Apps will come through Airplay. And Jobs was pretty clear about Atv, customers don't want it to be another computer nor manage storage (and apps directly implies certain amount of storage) and syncing. But the strategy is centered around iPad,
iPhone and iPod touch. Browse web on the iPad and beam content on the Tv by Airplay, etc. Sky is probably the limit
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Old Sep 7, 2010, 07:09 PM   #3
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Yep, that makes sense. I thought about Airplay but mostly for video content. I also think there's potential for a gaming machine aspect (call it apps if you want) using iPhones/iPods as controllers.

Last edited by KDR; Sep 7, 2010 at 07:15 PM.
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Old Sep 7, 2010, 07:34 PM   #4
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sure, but what about international users?

Yeah, all that makes sense, but only for the US. Possibly even for some (big) markets like France, UK, Japan, and others where the big studios are already willing/able to provide content due to licensing differences in each country.
If Apple can somehow reach worldwide licensing deals for content distribution, then this will really take off. Otherwise, it will always be a hobby. The critical mass now is global.
Just a thought.
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Old Sep 7, 2010, 08:30 PM   #5
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didn't we see a report estimating the price (minus research) for each apple tv at about $50-60? apple can make a profit on selling these without depending on rentals unlike many console/hardware makers (tivo, ps3, etc)
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