Disclaimer: This is a pure opinion piece and I claim no knowledge of Apple’s plans regarding Apple TV.
I think we are on verge of resurgence of a new version of Apple TV which will essentially use the same processor as iPad but will have better support for video. I see three reasons why it makes sense: 1) Apple needs entry into living room; 2) It will be easy integration of existing iPod/iPhone/iPad applications onto the big screen; and 3) It lowers the bill-of-materials for Apple while giving a dedicated consumer device and maintaining differentiation from its existing iMac/iMacBook lineup. Before we jump into discussion on these topics, lets try to define the characteristics needed for the next generation of living room console.
Every consumer I know asks one question – how am I going to add another device in my entertainment centre. Case in point – my entertainment centre has these devices – DVD player, component audio system, PS3, Wii and a Cable set-top box. If I look back I see three devices with DVD playback capabilities and 3 devices capable of my daily dose of cable TV functionality (Although cable TV functionality is not directly supported in PS3 and Wii in my region – but these definitely are capable devices). Can I make some of these redundant and thus free my space?
Given that PS3 and Wii are there for a reason (for me and for my wife respectively), I think the DVD player and the cable set-top boxes are redundant devices. Then why do I use them? I have no alternative for cable set-top box – the provider does not support other devices. DVD player is more user-friendly for the pop-and-play using very little power (vs Wii and PS3) and thus better suited for watching movies (I am green-minded to the extent it saves me money).
In a nutshell what matter most in living room – ability to play most future generation media and games with minimal clutter of wires. Let’s list some of the key requirements of such a device, how does Apple TV stack up and how can Apple improve in the next version:
CD/DVD/Blu-ray drive to play traditional media
I will be asked why does a future generation device needs to support traditional media when online media is the future omnipresent. Answer is that people have built libraries of physical media. I know, I have more than 100 DVDs bought over last 4 years and atleast for now would want ability to play these. Note: Tapes did die a quick and painless death but that my micro-component system bought in 2007 still had tape-reader. Ofcourse I have never used it.
While I do agree that Sony PS3 and XBOX 360 did do away with backward compatibility (BC), I believe the difference is cost involved for supporting the feature. Xbox 360 and PS3 went with different architectures versus Xbox and PS 2 and could not support hardware BC without replicating complete systems — significantly higher costs. In contrast supporting a Blu-Ray/DVD/CD combo disk will probably add US$50-60 (DVD/CD only drive will cost mere US$15-20) to the system. I think it is acceptable for a future generation device.
How does current Apple TV stack up? Current Apple TV doesn’t even have a disk drive. I think the single most important reason for not supporting an ODD was to keep differentiation versus Mac Mini, given both use Intel x86 chips and fairly similar.
How can the future Apple TV improve? Add an ODD – preferably a Blu-Ray to make future proof, but a DVD/CD drive will do just fine. Use of Apple A4 processor with iPhone OS will ensure product differentiation with Mac Mini and thus no product overlap issue.
Mini-LCD screen for quick interface check
One of the biggest gripes I have about HTPC’s is that I need to switch on my TV even if I need to simply pop-in an audio CD drive and play on my component system. A quick-play navigation system built on-screen would be great for such simple tasks. I definitely want the ease of traditional DVD\CD setup even if it is an HTPC
How does current Apple TV stack up? Chicken and egg problem. Need to have an ODD first. See previous point
How can the future Apple TV improve? A small widget screen on top for that quick access. Additional control through iPod/iPhone/iPad widget mechanism. Complete ecosystem of control – do I ask for more. (Going for the overkill here - bundled iPod with Apple TV)
Wireless and Wireline connectivity for streaming online media and media support
Not much scope for discussion here as I see the requirement self-explanatory. A HT system without this capability today is simply positioned for potential buyers frustrated in near future.
How does current Apple TV stack up? Extremely good support for online media – Youtube, Netflix, Hulu, Boxee, Vudu support. HDD-based media library can be played flawlessly using iTunes syncing. Only gripe is support for a very narrow base of formats.
How can the future Apple TV improve? Given Apple’s aversion to Adobe Flash, it is safe to assume that most third-party content will not be available once a new generation Apple TV is available. However, hope is there as Netflix enables iPad/iPhone streaming options. I believe, other media providers will also become cognizant of strong platform opportunities and do not see the issue to linger long.
One area where I am less hopeful of change from Apple but would sincerely want is a wider support for formats – atleast all the most used formats even if it means some royalty payments to other format owners. Apple needs to realise that users do download media from other sources and are not always aware of format differences. Cannot play non-Apple media implies frustrated customers.
USB port to play locally recorded media directly
Current implementation of USB play in most home-theatres in my opinion is abysmal. I would want the HTPC to play all my software library directly from HDD but I would prefer a superior media streaming option instead. As such I do see a NAS becoming an important piece of equipment at home – although most home NAS needs severe capability upgrade (plan to discuss in a later post someday).
How does current Apple TV stack up? Apple TV does have a USB port but nope it does not support read/write from a HDD (ofcourse hacks are available)
How can the future Apple TV improve? I would have to say it is a good-to-have feature but not a must. Apple being Apple would definitely not support external HDD and definitely no complaints there.
1080p video support and 7.1 audio output (preferably analog and S/PDIF)
Needless to say an HTPC system without full HD video output, upscaling for non-1080p media and option for hooking up to external speakers and/or home-theater system is meaningless.
How does current Apple TV stack up? Apple limits support for HD video to 720p. While hacks have been able to push 1080p, its no common Jack’s capability. Apple TV does have S/PDIF port and probably does support 7.1 output (I am not sure if it does support)
How can the future Apple TV improve? This is where Apple A4 chip can trump the existing Intel stack. With PowerVR SGX graphics can help prop Full HD output and 7.1 output. (I don’t know if Apple A4 chip actually can support these, but I am basing my hypothesis on similar capabilities in Nvidia Tegra 2)
Conclusion
While Apple TV presents a strong system, it falls short on multiple requirements: 1) No CD/DVD/Blu-Ray drive; 2) No pop-and-play functionality support for use as basic DVD/CD drive (on-screen system can be a differentiator too, enabling overlay menu screens with widgets is a powerful way to integrate basic with advanced); 3) No Full HD support; 4) Lacks support for most used formats; 5) Seamless integration with other media-centric ecosystem; 6) Fairly large power draw leaving it as an optional device instead of must-use.
That said, I think Apple can improve on all these drawbacks and create a powerful solution. In my next post I will discuss what can make Apple TV come out of hobby into mainstream use. My third post will discuss possible costs for such a device and how other companies can compete with such a strong platform. Adios till next post.
