Much ado has been made about the fabled Apple iTV. Last spring we heard that the company was planning a cloud-based TV service, and that rumor received new legs when Walter Isaacson’s posthumous Steve Jobs autobiography was released. In the book, Jobs discussed that the television – and the living room – was the next domain Apple would conquer.
“I’d like to create an integrated television set that is completely easy to use,” he told Isaacson. “It would be seamlessly synced with all of your devices and with iCloud. It will have the simplest user interface you could imagine.”
Who will win the living room has become a very real, very important question, and manufacturers of all shapes and sizes have thrown their ball in this court.
For its part, Google has made attempts thwarted by a variety of problems, from content to manufacturing partners that have lost faith in the product. While it’s not out of the running, it’s sort of starting from scratch with the coming revamp. Platforms like Roku and Boxee are small enough that we don’t consider them viable options to conquer the living room, although they are worthwhile alternatives for casual buyers looking to solve smaller problems than connecting all of their entertainment. But they each have serious limitations: Boxee has been slow with updates and adding content, and Roku is sort of a minimalist approach to Internet TV.
Microsoft has played second (or third) fiddle when it comes to a variety of next-gen products, but this is one which it firmly has a handle on. There’s ample excitement about an iTV, but brace yourselves: when it comes to the living room, Microsoft is going to win.
Because the console isn’t dead
If there’s one segment that Microsoft has a firm grip on that Apple can’t even begin to touch it’s gaming. The Xbox ecosystem has been and continues to be a huge seller for Microsoft, and despite being six years it’s still insanely popular with new buyers.
The bundle is an attractive thing to consumers. Everyone wants to get the most out of one platform or one device that they can. People like the idea of combining their digital identity and ownership instead of spreading it out among different developers, applications, and brands. And let’s face it: Microsoft can offer a much more complete package when it comes to your living room content.
Apple doesn’t have a gaming platform or console to speak of, and this is a big part of the living room. Most of us would at least want the option of gaming and if there’s something available that can collectively hold everything we would want to use a TV to do, then it’s going to win.
And that’s why it does. Apple TV has been a popular device, but until it can offer a comprehensive package like Xbox does, it won’t win. We don’t think Apple has any such plans, either. It wouldn’t make sense for the company to try and win over a demographic that would be incredibly difficult to convince.
Now the purported iTV could seemingly turn the model on its head with its built-in connectivity and cloud-based content library. If you bought an iTV, would it behave like other Apple devices and lack ports to connect to devices outside the walled garden? If so, it’s dead on arrival, so we’d assume not. Even still, there are a few other things that will pave the way to Microsoft’s success over Apple (including the fact the supposed TV would cost double the industry standard).
You could argue that the iTV wouldn’t need a console, that the connectivity is built right into the thing. But what if you want the console? What if you want a fully-fledged entertainment experience for your living room? And when the next iteration of the Xbox arrives, we’re fairly confident it will include a Blu-ray player. The gaming console might be showing its age, but it’s far from dead and it’s still a major enough medium to drive sales.
Not only that, but people only replace their TVs about every 6-8 years — a number which has dropped, but is no where near the replacement cycle Apple has established with its products. Who wants to live with an outdated iTV? It would hamper buyers who are on the iTV fence. The device is speculated to be quite expensive – which wouldn’t be a surprise given other Apple pricing. Dropping that much cash on something you know is going to be outdated but that you’ll probably need to live with longer than your iPhone is something of a hurdle.
Because you need full “Search,” not just Siri
This should throw you for a loop: Apple may have Siri, but Microsoft has Bing + Kinect. At first glance, that makes little to no sense, but allow us to dig a little deeper. The living room isn’t the most natural place for the traditional browser experience. That said, an element of search-and-find is incredibly important, especially when you’re navigating the vastness of your digitally-owned and cloud-based libraries.
To the end, Microsoft has introduced the Kinect. The motion-gaming system has been integrated with Xbox for voice commands as well. Gesture and voice allow you to wander through your collection, and Bing (which has repurposed itself as a “doing engine”) plays into this by giving you the ability to find what you’re looking for – anywhere. If you search for “Star Wars” you’ll be presented with a number of options (gaming, TV episodes of Robot Chicken available on Hulu Plus, the movie) so you can select which you want.
An Apple iTV would probably use Siri for the same purpose. While Siri has been fairly impressive, it’s limited compared to Bing + Kinect. For starters, Siri alone is Apple’s own search engine. In order to give an iTV the capabilities that Kinect + Bing give Xbox Live would mean Apple needs to buy, partner with, or create its own search engine that it can completely tailor to Siri. Again, Apple could do this – but it’s many steps behind where Microsoft already is. Microsoft will continue to build off this innovation, and Apple still needs to get there.
Because iTunes and the App Store won’t cut it
There is no doubt that compared to most, Apple has a storied reputation when it comes to striking deals with content rights holders. ITunes has largely made copyright owners and artists very happy, and users have clearly taken to a system they see as far more fair than the old one.
But this doesn’t necessarily translate to the TV. First of all, iTunes alone will not be enough to carry an Apple iTV platform. That system simply isn’t fast enough to serve as an all-purpose content service for users. Second of all, Apple would need to develop relationships with big cable networks – something that Microsoft has been very good at doing.
Microsoft is a veritable veteran in an area where others – like Google – are still trying to get footing. It was part of what seriously set back Google TV. And it’s not just pulling in content, it’s creating native Microsoft interfaces to identify and solidify its branding. It’s been a long-time in the making and not something Apple would be able to introduce right away. If you need a reminder, here’s just a few of the things you have access to Xbox Live membership (which doesn’t require the rent/pay-as-you-go system that Apple TV currently does):
- ESPN
- Hulu
- Hulu Plus
- Netflix
- TODAY/MSNBC
- EPIX
- HBO GO
- Comcast Xfinity OnDemand
- Crackle
- SyFy
- iHeartRadio
- Last.fm
- YouTube
For the record, with the current Apple TV get WSJ Live, NBA Game Time, NHL GameCenter, and MLB.tv, Netflix, YouTube, and Vimeo, and whatever you buy on iTunes.
Once Apple launched the iPhone and started its App Store, it had taken mobile. And while that might erode PC sales, it has nothing to do with TV, and it’s not going to. The best App Store doesn’t translate into the best living room content.
Microsoft has been silently waging this war for years while Apple has tip-toed into the arena. And the work has paid off: Apple won’t be able to ride the enthusiasm of its fanboys with an iTV, and Microsoft could easily take home the living room title.
Of course, we don’t know everything there is to know about the iTV – in fact we know almost nothing. But whatever traction Apple could gain over the next several months or year simply won’t be enough to topple everything Microsoft has done up until this point.
I’m not saying it’s going to be better than everything else out there. I’m a huge, unapologetic Apple fan (look at my pic), but even I don’t think they should try to get into that market.
My problem with the whole article is that no one outside of Apple has any specs whatsoever of the fabled Apple TV, but that doesn’t stop DT from completely trashing it. They skewered it to the wall without even seeing, or knowing anything concrete about it at all.
Come on guys, I read DT because they have some interesting tech articles, but that one was just a poor, thinly disguised attack. Not to mention, some of the statements are completely false.
Heck, I don’t even know why it irritates so much, it’s just more Apple bashing that Apple fans have dealt with for years. But I can tell you that MS still has a long way to go with the XBox. They won’t even put a web browser on the thing because they don’t want to cannibalize Windows sales. Like they don’t have enough of those to go around, sheesh.
Thomas, we will always let our writers have the chance to voice their opinions. While we love both Android and Apple, unfortunately we are not brand loyal, we are critical of every product that comes out! So while Molly might think the Apple iTV is a bad idea, she is certainly not a hater of all Apple products. She owns an iPhone for example.
We aren’t Apple bashing all the time – we just recognize a bad product when we see it!
P.S. For the record, I use an iPhone 4, MacBook Air and an iMac (in addition to other Windows based systems)
I’m all for constructive criticism on products. I too, am a big fan of Apple products, however am somewhat brand agnostic as (at least since Windows 7 anyhow) I see value in Microsoft products, especially my Xbox.
However I think what Thomas was a little irritated about, was the critique of a product which is *yet* to come out! We don’t even know if Apple is going to make a the so-called ‘iTV’ (which I doubt would be called ‘iTV’ if it were to come to fruition, as I think even Apple is getting over the whole ‘i’ phenomenon).
The article would have been more accurately titled ‘Why it will be very difficult for Apple to beat Microsoft in the living room’ – or something along those lines.
I hear you. We know its coming out. We have heard it from Piper Jaffrey’s analyst. But I agree that there isn’t much information out there yet on it.
Box of tissues for Thomas. Quick it’s getting ugly. Fanboy histrionics aside it is refreshing to see a Tech article actually critically review Apple. Hey Thomas! Looking for Apple love? There are plenty of Apple loving Tech sites you could be reading.
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Ive seen Apple TV at my parents house, they are Apple Fans but dont know why. Two Ipads, Apple TV etc. You know the great thing about apple movies? When you “Rent” something it costs about a dollar more than the old video stores and you can watch it…once. Also once you start it, you have 24 hours to finish it then its gone forever. Of course you can rent it again at another 4.99 – 7.99.
Though I agree with many points, I just can’t see these 2 products as being direct competition, an individual will not be going to the store in 2 years and looking at a $1500 iTV and a $400 Xbox 720 and debating on which to get.
The iTV will be a success, but most likely with a much smaller market then what the iPhone achieved simply due to the pricing and whether people need to upgrade their TVs. Iphone may blow Xbox away in terms of sales, but I can’t see every individual with an Iphone also purchasing an iTV. Both will sell, but I see Xbox reaching out to a much larger market.
Also being a multiple product home, Apple, Android, Google TV, Xbox, PS3, etc, what I see as a real threat to the living room is if Google TV was included with the PS4. Of course many kinks in GTV would have to be worked out, but there’s some huge potential if Sony and Google came together on this.
Last time I read an article like this it went on about how James Cameron could never make anyone care about blue people and how his latest film would be the flop of the decade…
I don’t know where to start with this article. And I think youre missing a huge point on the type of people that buy apple products. First off the ‘Apple Fanboys’ as you call them are in the minority. Apples huge success has come from selling consumer devices that anyone would buy – even your nan could use an Apple device. For every person I know that owns an Xbox I know ten that own an iDevices.
Next, have you ever tried to listen to some mellow music on your Xbox, or watch a film that isn’t an action blockbuster? Have you heard the noise from the thing??? It’s just not suitable as a serious DVD player or streaming device, period. Everyone I know who has an Xbox has since purchased the excellent WD LIVE TV for streaming content. It’s small, energy efficient and totally silent.
Smart TVs may be the next thing, but until someone integrates the whole thing, makes it work out of the box, and makes it so simple that even your nan could use it, well – then you’ll see it take off. Anyone know of a company that’s had any success with that sort of product?
iTunes not good enough to support it? Again, all of the people I know with iDevices spend money on iTunes. None of them spend a penny on Xbox or streaming services except the one or two tech savvy people I know! It’s just too much like hard work for most people, and they’re happy spending a few £’s more for content on iTunes when it’s there and just works’.
The Xbox is great for games and watching the odd DVD. The centre of your living? I don’t think so!
Wow someone is not in touch with reality. Apple has a way to go when it comes to rental movie services. Apparently iTunes movie rentals are only about 10% of Netflix’s in terms of revenue: http://www.appleinsider.com/articles/10/12/29/apples_itunes_rental_service_believed_10_the_size_of_netflix/
I think the point, at least to me, is that the Apple iTV will fail because users do not get a choice of where they can rent movies or shows from. It’s a walled off garden.
And as to the noise the Xbox 360 puts out, its not any louder than my cable providers DVR box that we use.
Xbox is already the center of millions of living rooms, newer models are fairly quiet, not much louder then a normal player, plus it has begun offering dozens of streaming options. I’d imagine their next verision will run even smoother as they intergrate Windows 8/Metro with all products.
I appreciate the Apple Eco-system, great products and easy to use, but I see no point in dismissing other products.
I find this very rare that DT has anything but glowing praise for their beloved apple….. Just saying
Ive seen Apple TV at my parents house, they are Apple Fans but dont know why. Two Ipads, Apple TV etc. You know the great thing about apple movies? When you “Rent” something it costs about a dollar more than the old video stores and you can watch it…once. Also once you start it, you have 24 hours to finish it then its gone forever. Of course you can rent it again at another 4.99 – 7.99.
If U R going to make comments, at least be somewhat accurate (truthful). Apple TV movie rentals start at $2.99, with new releases costing $3.99. That is for standard definition. If a fewer wants high definition, add $1.00 to the preceding prices. The rental time clock starts when the purchaser begins watching, be that minutes or weeks later. Once started, the purchaser may view as many times as they choose within a 24 hour period. I watched Hugo last evening for $3.99, and my wife is watching it as I type my comments. Before I rented from iTunes using my AppleTV, I price compared on Vudu, and Xfinity (Comcast). Vudu prices were the exactly the same as AppleTV, while Xfinity prices were $1.00 higher for SD and for HD, and for $6.99 rental, Xfinity offered HUGO in 3D. Apple movie rentals are priced lower than or equal to competitors.
Heh, it’s funny that the 2nd to last statement in the article really needs to be the first, “Of course, we don’t know everything there is to know about the iTV – in fact we know almost nothing.”
Um, yeah. You know absolutely nothing about the supposed Apple TV (which I’m not convinced is a real product), but that doesn’t stop you, or even slow you down from killing it before it even gets to market.
Not to mention this untrue statement, “If you need a reminder, here’s just a few of the things you have access to Xbox Live membership (which doesn’t require the rent/pay-as-you-go system that Apple TV currently does):” Uh yeah, XBox Live is a pay system, you don’t get access to any of those “free” service without paying for Live, right?
Come on, this isn’t a real article, right?
You kidding me Thomas? I couldn’t agree with Molly more. I don’t see how Apple can do any better than Google when it comes to the TV space. I don’t want a million set top boxes in my living room, and I’m not about to go out and replace my TV just to get an Apple iTV (remember the days when people kept TVs for 10 years?). So how is Apple going to sell enough units to make this a business model?
Google failed with their internet TV. The Logitech Revue bombed, Intel ditched the SmartTV. Its a nice feature to have in a TV from Samsung etc, but most people are not buying a TV for it.
Then you have Apple’s walled garden like Molly mentions. I do not want to be stuck with iTunes for movie rentals etc. I need more options.
So tell me how Apple plans on making this a new market?
Remember when Nokia dominated the phone market? People thought there was no way anyone else could come in and knock Nokia off their #1 position. Now they’re surviving off patents. Microsoft tried for years to start up a tablet PC market unsuccessfully; even Apple themselves failed with the Newton.
Just because others have failed doesn’t necessarily mean that someone else will. I’m not necessarily saying that Apple will get it right, as they most certainly don’t always. However, if Apple does want to enter the market, they would be well-aware of the difficulty of the market they’re attempting to tackle. It’s a fickle beast (the TV market), I worked in electrical goods sales for 7 years and saw several big brands struggle to stay in the market and eventually drop out altogether (I’m in Australia, we’re about 2% of the world market, so some brands simply give up on us).
If Apple does decide to make a TV, I imagine they would take a similar approach to that of their PC range – high prices for a premium product. Quality, not quantity. I doubt they would attempt to dominate such a fickle market, it’s simply not possible. Jobs (rest in peace) always saw Apple as the Rolls Royce of computers (whether they are or not is a tired topic I’m not discussing); I imagine his plans for a TV would be very much the same. The best possible integrated package, with specs the same as other high-end TVs, at a price 50% more than everyone else… but my god it’s just so *pretty*!!