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SHIFT: Apple TV, take 2 — I'll wait for version 3

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Last year when Steve Jobs announced Apple TV at Macworld 2007, I wasn't impressed. I expressed my displeasure at the fact that the media was basically giving a free pass to a product that I predicted would be an overpriced failure. My words provoked the wrath of many angry, defensive Apple-lovers. But Apple TV was a failure, and by Macworld 2008 Jobs admitted that the company's expensive "hobby" had failed to catch on. He said, "It's not what people really wanted… So we're back with Apple TV, take 2."

Apple TV 2.0 allows direct downloads from the Internet, Amazon Unbox-style, meaning no computer required. iTunes now offers movie rentals. In addition, Apple TV is less expensive than it was last year and includes cute new features like Flickr compatibility. But will it be the little white box that convinces people to give up their DVD players the way the iPod made them ditch their Discmen? In a word, no. Follow the Continue link to read where Apple messed up this time.

What, exactly, can it do?
It's no exaggeration to say the restrictions on new iTunes and Apple TV content are confusing. Just check out this chart. It shows that while you can purchase SD movies from the Apple TV, you can't purchase HD ones. On the other hand, if you rent SD or HD content on your Apple TV, you can't transfer it to your iPod. And when you browse the iTunes movie store it's nearly impossible to predict what movies will be for rental and what will only be available to purchase — there's surprisingly little overlap. No particular restriction is a deal-breaker, but put together, they make for a system that's hard to understand.

With Apple TV 2.0, Apple has mucked up its reputation for having a simple interface with fine print that few potential buyers will take the time to try to figure out. They'll just take the restrictions as a sign that it's still too early to commit to this convoluted digital stuff. While instant gratification is convenient, draconian rules are not. That iTunes only has 1,000 films to Netflix's 90,000 is another very noticeable shortcoming.

Who's it for?
Last year I complained that Apple was leaving out more than 50% of its potential customers by making Apple TV for widescreen-TV owners only, leaving old-school square-TV users to fend for themselves. That's still true, and while far more people own widescreen HDTVs this year than last year there are still millions out there with square televisions. Apple TV's clearly not for them.

But is it for high-end users, early adopters who have spent thousands of dollars on their 42-inch+ plasmas and LCDs? Not really. Apple's promising those customers a limited number of HD movie rentals (none for purchase) at 720p resolution. We can argue all day about whether 1080p images are really better than 720p, but it's clear that users who purchase the most expensive gear do care. Meanwhile, all of iTunes television downloads are in SD, even though most conventional TV shows come in HD for free over the airwaves. This means that if I purchase an episode of Lost on Apple TV it won't even be the right shape for my television, never mind as high quality as an HD broadcast.

All this is to explain that Apple TV has no obvious audience: the box is not made for cheap TVs, but iTunes isn't ready yet to deliver on image quality for expensive ones either.

It's not Apple's fault (entirely)
To clear up my own questions about TV-download boxes, I compared the offerings of Vudu, Apple TV, and Amazon Unbox on TiVo. While Apple TV does come off as a little expensive, it's by no means a clear loser among its rivals. Vudu won't let you take any content off its boxes, and Amazon Unbox cuts out Mac users completely. All three companies must contend with stubborn studio executives who supply content at the rate and consistency of an old, leaky faucet— it's not like Apple wants to have such a limited and restricted selection of movies.

In a recent interview Bill Gates said that what he admires about Apple is that it can introduce fully "polished" products with great "usability." I agree. Which is why Apple TV has remained such a surprise to me: Jobs's goal with Apple TV 2.0 was to make the product more intuitive and easier to use, but it's not at all clear that he has. It may turn out that the product works beautifully (our reviewer loved v. 1.0), but with no ideal audience and such a small variety of DRM-strapped content v 2.0 seems about as likely to go mainstream and introduce downloadable content into the country's living rooms as last year's model.

For the next version…
In order to achieve its goals, Apple TV needs to do three things. First, it should provide rental and purchasing options whose price and availability are easy to predict in files that are simple to transport. Second, it needs to "just work" with the TVs that are out there, offering both the best HD and upconverted files for widescreen HDTVs while feeding standard-def video to the square ones. And finally, Apple, I'll repeat a question I asked last year: You ship laptops with AC adapters. Would it kill you to include cables with Apple TV so it works out of the box?  
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By MichaelStreetsboroOH at 8:07 PM ON 02/07/08

I enjoyed the whole article. I agree with you that not only on the Apple TV but on many of Apple's products the media give free passes to products.

By tntitan0504 at 9:09 PM ON 02/07/08

I just recently purchased an Apple TV and although the software update still isn't here, I am still excited. The closest blockbuster to me is about a 10 to 15 minute drive. I am somewhat of a basic techno geek but I wanted to be able to rent movies that would work on my tv, easily. I thought about Netflix but I do not want to just watch them on my computer, I want it on my TV too.

Anyway, I personally thought $229 was affordable in saving me a 5 mile trip to the video store about every week or two.

Not to mention, I have uploaded all of my music so when my next Halloween party comes along, I won't have to do what I do every year, which is scram at the last minute because I realize I forgot to make sure I had the right cables to try to sync my music to my stereo and get it to show some sort of display on my 42" plasma (cause why waste that big tv with nothing on it - lol).

Anyway, just my take on it.

By AC at 11:43 PM ON 02/07/08

Am I the only person who bought the @tv as a device to view and listen to my music, photos and personal videos on my 40" LCD. now my whole family can enjoy our 12K plus photos and hundreds of videos on 40 inches of liquid goodness. All the other features are icing to me. I am more disappointed that take 2 will not enhance my experience by including content management tools like iPhoto Events for photos AND videos.

As far as your recomendations I do not share your concerns. I will reserve my opinion on rentals until I have the experience. Regarding cables, I don't know of any product out there that offers them. Apple has HDMI cables for $20, so you don't have to pay the MONSTER price at your local rip off store. And finally, if you can smack down $300 - $400 for an @tv, you most likely have the coin for an LCD or Plasma.

One recommendation is to definately upgrade to an 802.11n router because the 802.11g speed is way to frustrating with @tv. Steve got another $200 from me when I bought the Airport Extreme, but now streaming YouTube videos is perfect. BTW, I was never much of a YouTube watcher until I got my @tv... and my Airport Extreme of course.

By Colin at 2:26 AM ON 02/08/08

I agree with you about Apple TV 1.0 falling flat. The device isn't very compelling without rentals.

However the day I heard that Apple TV offered HD rentals (even at "only" 720p) in 5.1 channel surround sound from every major studio, I bought an Apple TV right there. Apple TV 2.0 has HUGE potential! Sure it's not 1080p, but most studies indicate viewers have a hard time telling the difference between 720 and 1080p, and 720p means a faster download.

The problem with Netflix and most other rental services is that their model is based on snail mail which takes a week, the streaming movie selection is limited to old, mostly B movies, and you can only watch them on your computer.

The problem with Blu Ray is that the players are twice as expensive as the Apple TV, not all studios make movies in that format, you don't have the instant gratification of a download, and the Blu Ray selection at Blockbuster is pretty minimal (worse than even the current iTunes store).

Apple TV has the potential to make it so that I never have to visit Blockbuster again. Why would I, when I can get any HD rental I want for as much as the standard DVD I'd rent at the store and I don't need to drive in the snow or wait in line to get it?

By Colin at 2:28 AM ON 02/08/08

Sorry for the double-post. I kept getting an "internal server error" when I tried to submit.

By puggsly at 3:11 AM ON 02/08/08

Is apple TV a failure yet? I purchased one 6 months ago and have been thrilled with it. Now I get a free upgrade (which I always expected) that will make it even better. It is my understanding that they have sold about a million units (nobody really knows) and the update should jump start even more sales. The truth is that Apple TV is still the same device it has always been so it seems a bit early to say it "failed!"

As for the terms? I'm not sure they are all that confusing. HD content is currently only available for rent and only direct to AppleTV. Now, I'm disappointed about the no purchasing yet, but I doubt thats permanent. The only other odd or confusing thing is that it appears that if you rent an SD show or movie that you can't transfer it back to iTunes, but if you purchase from iTunes you can move it to AppleTV and back again? I'll just have to see about that but it is hardly baffling! Also the mix of purchase and rental movies is not all that odd seeing as the service is just now coming online with all of the studios. I don't remember all of the movies moving to blue-ray the day after it was announced ether. Which brings me to netflix's 90,000 titles....give it time! I mean seriously, the ink is hardly dry and the update is not yet available!

Your complaint about old TV's was silly a year ago and is sillier now, in another 6 months most people will laugh at you. I purchased a 37" Olivia LCD TV for $520 this weekend. 50-60 inch DLP's are less than $1,000. We are not talking about TV's for the rich and famous. Also, I'd bet that 95% of those HD TV's in people's homes are only 720p. Virtually all plasma TV and many of the DLP and LCD TV's even today are 720p and a year ago 1080p was virtually unheard of, so you are talking out of both sides of your @$$. The truth is that AppleTV is well target to people who have purchased a TV in the last 3 years. Also, you should spend a couple bucks and actually try some of the video content on the iTMS before you guess. I've downloaded a number of TV shows and many are in widescreen format (Stargate, Terminator, and Jericho to name a few).

Finally to clear up the BS of your comparison of the AppleTV and Vudu and Amazon, here as some facts that you neglected to highlight:
1) AppleTV - Lowest HD capable entry price.
2) AppleTV (and vudu) - No monthly Fee
3) AppleTV - Has the only other internet content (youtube, and photo slideshows)
4) AppleTV - Content can be played on Mac, windows, iPods, and iPhones.
5) AppleTV - Most convient payment options.
6) AppleTV - Same price for SD TV and Movie rentals.
7) AppleTV - Only service offering any HD content.
8) Vudu - Plans on offering 720p content soon but not 1080p

AppleTV is the right product, and it's success or failure is base on content. So, six months from now if Apple still only has a small fraction of the content of Vudu and Amazon, it will fail. But if it has all the new titles and thousands of older ones.......Look out!

By DWalla at 4:56 AM ON 02/08/08

Let's not pretend that the quality of HD coming via downloads is on par with Blu-Ray or HD-DVD... even if your TV is only 720p both of these formats look magnitudes better than downloaded HD. That doesn't even include the audio... Blu-Ray audio is simply awe-inspiring. Pixar mixes some of the best sound in a film, and the Blu-Ray versions sound easily 3-4x better than their DVD equivalent. Compare watching an HD film on DirecTV versus Blu-Ray.... sure, they may both be 1080p, but the Blu-Ray still looks vastly better than the DirecTV version because the data rate is much much better. Oh, and I can easily tell 720p versus 1080p at a simple glance.

By Traveler at 12:07 PM ON 02/08/08

How many titles are available? Does it do 1080p?

By Nate at 9:41 PM ON 02/08/08

Mixed feelings about the article...as I have the 1.0 AppleTV and love it. I do use the eyetv to record and export video off an antenna. I do watch on my AppleTV and my iPod. My itunes on my computer even keeps track of my place when I start a program on one and finish on the other. But, honestly, the best part about apple TV is having my itunes in my living room on a big tv and having the remote to control the music playing. I will be interested in rentals when they are added. But I would still buy another AppleTV even if it did not have video content. It is a sort of enigma...still not defined. Not so sure what it is going to be in the future. If I were to add something to it, I would want audio streaming (internet radio) and the ability to use it as an airport speaker (either controled from itunes or to have it control my other airport speakers). Or maybe Apple will just use this as a platform to flush out features that people really want before launching their own tv line by Christmas with an integrated appletv/itunes.

By youclay at 6:23 PM ON 02/10/08

AppleTV is great. We use it share photos, movies, music during family gatherings. As a consumer item, it's odd because the AppleTV doesn't do one particular thing. It could be a way to collaborate ideas, movies etc. since it can stream content from ?five computers. This might be ideal at a meeting. If this was the AppleTV's intent, it would be nicer to be able to stream Powerpoints. Maybe it will be become more of a business device than a consumer device.

We do use it a lot for movies, music, and esp. TV episodes. And I wouldn't normally buy to own TV episodes but in the end, it is actually pretty convenient. But there seems to be a lot of alternatives for finding TV episodes these days.

By Nate at 9:36 PM ON 02/12/08

To update, I got my new software and two out of the three things I requested were added (much to my surprise). I can use my apple tv as remote speakers with the other airtunes speakers (nice for parties and cleaning the house)....and they added the functionality to stream. I go to my playlist with my favorite radio stations and they all seem to play fine now (before they wouldn't). I am a pretty happy camper right now. Maybe I'll even rent a movie this weekend.

By Rault at 9:17 PM ON 02/15/08

2 other points on the plus side:

1) the AppleTV has a high-quality upconverter to 1080p that is probably better than the one in your tv.

2) cable companies' HD is REALLY compressed. You can see all the compression artifacts--those MPEG "squares"--particularly in scenes with a lot of motion. AppleTV looks better than cable HD in most cases, to my eye, despite the resolution difference. Go to appleinsider's article to get a great side-by-side comparison.

http://www.appleinsider.com/articles/08/02/14/apple_tv_take_2_review_part_2_hd_movie_comparisons.html

By kolacek at 10:23 PM ON 02/15/08

So basically it's bittorrent versus paying a crapload of money to a huge american corporation for a piece of chinese-outsourced junk.

Wtf indeed.


By Uncle Mac at 10:25 PM ON 02/15/08

I'm not surprised of this review of the Apple TV. I'd be right, probably, in thinking that it was written by either a non Mac user or a very uninformed one. I believe that out of the box @TV 2.0 is probably worth the purchase price especially for the Grandparents or some that like to play around with the hardware and software or add and Eye TV such as Nate. Lots of folks fail to mention the better pricing in the excellent refurbished line offered by Apple Store. I've purchased several items from there and never had a minutes trouble. I'd agree with Puggsly too as the price is right for HD content sans the soon to be Betamaxed HDDVD players! LOL BTW The 40GB Refurbished @TV goes for $199 and saves you a cool $30 clams. ;-)

By endogenous babler at 8:34 AM ON 02/21/08

With digital cable companies increasing their bandwith and offerings via 'free' set top boxes... how will apple, vudu, or otheres compete ever compete?

Answer... they will ultimately loose... just like Tivo has.

Verizon Fios is amazing... why pay Apple for the equipment, cables, content, then seti it up etc... when all I have to do is push a button on the equipment I already have to access superior HD streaming content.

By toontimer at 10:36 AM ON 02/21/08

Just got the Apple TV as a gift and didn't know what to expect. Hooked it up, played content right away with NO waiting. We're thrilled with it. I'm able to use Handbrake to transfer my DVDs into my Macbook Pro, and Parsley to tag the files with titles, descriptions, artwork, etc. and import into my iTunes library. Only issue I have is storage. If I import more than my harddrive will hold, then I have to use network attached storage and map iTunes to find the mp4 files there - which is not a big deal as long as I have FTP access to this NAS drive when I'm off my own network. Still, with a little finess, I could potentially put everything I own on DVD into my Apple TV and make it all available on demand with no discs and no waiting. That's a lazyman's dream system! Even my PS3 and Xbox won't do that.

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