I am somewhat disappointed that Apple hasn’t announced some kind of upgrade to the Apple TV so far. Sure, the device works as advertised and I am extremely pleased with mine, but the fact that the device has not been updated to support the new iPhoto events made me expect a product refresh for the holidays.
Right now, the Apple TV is still a good value proposition for those who store large amounts of pictures in iTunes and buy TV episodes through the iTunes store. However, since TV shows are only available in the U.S. and in the U.K. (although there doesn’t seem to be a large selection available there) that severely limits the potential of the device.
It seems that Apple is working with the movie studios to offer online movie rentals. That could prove to be a smart move as it it obvious that nobody wants to go to Blockbuster to pick a movie and deal with late fees. Such an initiative could provide a much needed boost to the Apple TV sales. I am not sure that it will be enough, though as competitors are moving fast too.
For example, DivX recently announced that Sony had licensed their technology for the PS3. That means that PS3 customers will be able to use a single device to play games and view both blu-ray high-res movies as well as DivX content downloaded from the Internet (not that I would ever do that…). That is a great value proposition. You can now get a PS3 for US$499 and that includes 15 Blu-ray movies if you buy the device from Wal-Mart. Even if you price each movie at US$15, that puts the cost of the device at US$275, that is US$24 cheaper than the Apple TV.
From what I have been reading, I am not the only one doing the math and many are seeing the value that the PS3 delivers. It seems that Apple needs to do something quickly if they want to move more Apple TVs during the holidays and extend their current lead in the digital download market to the living room. However, time is running out, only three days to black Friday, and if Apple doesn’t release any updates to the device by then, we can be quite sure that there will be no updates until next year. That could be a big mistake.