New-apple-tv-cloud

As a longtime Apple TV owner, I’ll admit a dirty little secret: I really like the device. Sure, it has been one of the rare flops for Apple in recent years. And it could be so much more with say, a Blu-ray player or a web browser. But it is really good at its core functionality: bringing iTunes content into your living room. And that’s why this new version of the Apple TV makes sense — at least for now.

There were two varieties: a 40 gigabyte version and a 160 gigabyte version ultimately went with the 160 GB one thinking I could put most of my movies on it. Big mistake. I basically never use the hard drive on my Apple TV, so it’s a 160 GB hard drive sitting there doing nothing. Instead, I stream everything to the Apple TV.

In fact, the only time I do use the hard drive on my current Apple TV is when I rent a movie on it. Currently, even when renting, you download a movie to your hard drive where it sits for up to 30 days (or 24 hours after you start playing it). But with the new iTunes rentals (both TV and movies) everything is streamed — no hard drive is required (besides a small one for buffering purposes). Thanks to that, and undoubtedly the knowledge that most owners were using it for

Granted, Apple’s current $0.99 TV show rental option is pretty weak. They only have shows from ABC and Fox — and only some shows from Fox. But obviously, just as happened with iTunes music and movies, Apple is hoping all the studios eventually get on board. , most people aren’t going to feel comfortable totally killing cable just yet — but at $99, this will be a very interesting experiment for a lot of people.

All that said, let’s be clear: this Apple TV is not the killer device in the living room. This will be more popular than the current Apple TV, but it will not be iPod/iPhone/iPad-big. And Apple seems to know that, which is why they’re still talking cautiously about it.

The problem Apple faces is the same problem that everyone faces: content agreements. Hollywood is proving much harder to convince than the music labels were. In a few years, if DVD sales keep falling and cable revenues start decreasing, they’ll be more receptive to new options.

The killer Apple TV would have TV network subscription packages. It would offer live events. It would have every movie ever made available on-demand.

When that happens, the Apple TV will become a hell of a lot more than a hobby.