The Apple TV was launched with the prospect that customers would be legally and happily downloading movies to watch on their TV. However, technical incompetence in the movie industry has managed to not only scatter their own efforts but keep the Apple TV in low gear, according to 9to5Mac. The window of opportunity is closing for both Apple and the entertainment industry.

"What could have been a huge product this Christmas is turning into a dud. Why? The technology is there. We’ve all seen the hidden tidbits inside iTunes that allude to movie rentals. It is ready to roll. The infrastructure is also in place. People downloading Purple Violets (>1 GB) reported it came in at under 15 minutes - much faster than the average trip to Blockbuster and with no winter clothing to put on or car fuel to burn," Cleve Nettles wrote.

The problem is that the movie studios don’t know what to do next. They know they don’t want to give Apple the keys to their kingdom as the music industry did. However, neither do they have a clear picture of what to do next.

Mr. Nettles pointed to the recent revelation that Doug Morris at Universal didn’t even know how to calibrate a new hire on a technical basis, and apparently no one else in the company had the skills either.

As a result the customers are using piecemeal solutions. Many are on the Bittorrent bandwagon. Others use Netflix or Blockbuster. On the whole, the entertainment industry is foundering. The impact on Apple is that the small window of opportunity for Apple’s hobby, the Apple TV is closing. "...but more importantly, it is closing on the movie studios who obviously don’t get technology or its implications on their business," Mr. Nettles concluded.