Is Apple TV dying?


Cult of Mac has a good analysis on how the market may be leaving Apple TV behind. Netflix has been on a tear lately, extended its service as downloadable content on the PC, XBox, and Tivo. Plus, there is a variety of iTunes content available from other outlets besides iTunes.

"The final nail in AppleTV's coffin comes yesterday as Netflix announces a digital only subscription option, but the fatal shot was fired back in November. Follow me after the jump, as we discuss how Netflix strategy not only killed AppleTV but also threatens more than just longtime rival Blockbuster, and what (if anything) Apple can do about it."

The key point here is that the Netflix model is a subscription all-you-can yet vs iTunes pay-per-view. The one big advantage iTunes has is it's a one stop shop that's convenient for TV content. Shows are available online timely, while Netflix only handles content available on DVD. Plus, Netflix streaming library is limited, but appears to be growing. But that's today.

Apple TV is going to have to do more. And it's likely going to involve stepping on Apple's iTunes strategy. The Apple TV can't survive as simply a living room outlet to buy iTunes content. It may have to do things Apple won't like... such as a subscription model or partnering too with Netflix or maybe services like Hulu. Or, perhaps go in another direction like adding DVR and become a source of content rather than a destination.

Or, perhaps Apple is content. It sells a few units and makes some extra money on iTunes from its biggest fanboys with cash to burn.

Cult of Mac