The latest version of the Apple TV may face a more challenging market than its predecessors, according to one analyst. Previous versions had difficulties gaining traction, and according to Paul Erickson, senior analyst at IMS Research, the new and improved Apple TV may encounter a similar fate.
According to Erickson, Apple’s price reduction and added content options might not be enough to attract mainstream consumers.
"Today’s competitors are devices that are already in, or going into consumer households -- Blu-ray Disc (BD) players, game consoles, and connected TVs," he says. "These devices already integrate similar access to paid and free content. The most significant are game consoles and BD players – both of which trump Apple TV in terms of must-buy priority for consumers.”
Erickson also cites these obstacles to Apple TV’s success:
° Domestically, pay-TV penetration is very high, and HD VOD and DVR services are well-adopted and already available...| Read more »