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I think I know how apple "cracked" it. They are going to do to the cable TV Companies what they did to the cell phone industry, and then some. They will become a DVR vendor like motorola. First, they will charge the carriers hundreds in subsidy for the device, but the carriers will sell it on contract to the user, with a certain monthly fee. Right now DVR box costs $10 a month, this will cost at least $20/mo with a two year contract. This is also how they will sell at higher prices. They will move the TV industry more towards the contract/subsidy model, becoming the desired device and boosting the companies subscribers that offer their TV. Doesn't really solve the Balkanization problem, except they could have a DVR / iTunes hybrid. Not their style but everyone has a DVR anyway so is apple really going to end DVRs with iTunes? Not in the near future, so if you can't beat em, join em to beat em at their own game. It would be really nice to get rid of the cable box/ DVR, apple TV, and just have them all in the screen and integrated. And just to make a prediction that will never come true, it will play blu ray. Side load. Imagine that. One tv does it all.