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Jupiter Research: How to Deal with Apple TV Threat
Tuesday, March 27th, 2007 at 4:00 PM - by John Martellaro
Operators will have to view the Apple TV as an extensible platform, not as a single product, according to Ian Fogg of Jupiter Research.
The note advises that Apple TV is a bigger threat than expected. Apple will be able to expand the features, either through hardware or software, attach external USB devices, and has high definition capability that will likely be soon exploited. Tuners are aready available.
"Ironically, Apple’s download and play back approach will operate with almost any broadband Internet connection, unlike more traditional TV on demand services, " Mr. Fogg advised. "While the traditional VOD approach delivers instant playback, this benefit requires additional VOD and broadband infrastructure which reduces the availability footprint of those services.
Apple has already set up an ecosystem for iPod add-ons and could do the same with the Apple TV. And Apple has outflanked digital music download services.
"Operators must adjust both their broadband and TV strategies to ensure the same does not happen to their on demand TV services as video becomes the crucible for net neutrality debates and the planning of operator business models," Mr. Fogg concluded.
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