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Apple TV Could Eclipse TiVo and Netflix, Analyst Predicts7:00 am on March 26, 2007 | Category: Business, Mobile Devices, Television
Apple’s new set-top-box product, Apple TV, hasn’t enjoyed quite as much hype as the iPhone, but it has the potential to seriously alter the media landscape, according to one analyst.
Jonathan Hoopes, a financial analyst with ThinkEquity Partners, predicts that between 25% and 70% of the 22 million Mac computer users, and many more PC users besides, will buy the Apple TV device over the next five years. He expects that the new wireless DVR will ultimately eclipse digital video pioneer, TiVo, and mail order DVD service, Netflix, which have 4.4 million and 8.8 million subscribers, respectively.
“As a digital media content delivery vehicle positioned in users’ living rooms, we think the AppleTV/iTunes combination could become as disruptive to legacy video purchase-and-consumption behavior as the iPod/iTunes combination has been to the traditional music business model,” Hoopes commented in a recent report, noting that the product could single-handedly add more than $10 billion to Apple’s market capitalization over the next few years.
Hoopes said that the Apple TV platform’s apparent ease-of-use would be “a major driver for rapid adoption among users who are tired of having to master ever-more-complicated configuration menus and user interfaces that are common in today’s consumer electronics.”
He also speculated that the platform could end up segueing into the gaming market, in an attempt to compete with the three big console makers: Sony, Nintendo, and Microsoft.
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Published by TeleClick Enterprises
Edited by Jeremy Maddock