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The HDTV Industry Could Use Apple's Help

by , 3:10 PM EST, December 21st, 2006

The HDTV industry is having some problems. Profit margins are being squeezed by plummeting prices, and consumers remain frustrated by the complexity. As a result, Apple could be in a unique position to breathe new life into the HDTV industry according to a column at the SeekingAlpha retail news site published Thursday.

Using an analogy, the author points out that, ten years ago, the PC industry was in trouble. "PCs had just fallen below $1,000 (causing immense consternation to the dedicated computer retailers), Windows 95 was out, and the World Wide Web and email were intriguing consumers to try out the Internet. But just as with HDTV, the standard three piece PC required a rat's nest of cables to connect, and then the consumer was left to configure dial-up numbers and accounts, set up PPP and DNS tables, and figure out how to log into their POP email accounts. Most consumers threw up their hands."

In a similar situation today, Circuit City just announced a 3Q loss brought on by rapid declines in big-screen TV prices. Lower prices mean more consumers, but the technical issues surrounding HDTV have not been explained to customers adequately.

The author made a strong case for Apple to enter this market: "They [HDTV industry] need a company who can sell the benefit of an elegant, all-in-one flat-panel HDTV and guarantee a unique product experience. They need a company that will not only market the product, but also a lifestyle brand. They need a company who can deliver HDTV content to play on the product and will manage the brand experience end-to-end. And they need someone who recognizes that they can command and share higher profits with retailers."

Apple's venture into the living room with the "iTV" suggests that Apple is interested in that market. How interested they are in making life easier for HDTV customers remains to be seen.

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Observer Comments

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Close Name:davebarnes Posts: 118 Joined: 12 Jan 2005
Subject: I agree that I am confused

I am a geek.
I extremely knowledgeable about computers.
I know a lot about audio.
But, I am flummoxed by TV.
My wife and I have decided that we won't buy a new TV until our current Sony CRT bites the dust.
I am watching all my friends spend money on new TVs and have lousy images on most shows.

Close Name:Mikuro Posts: 448 Joined: 15 Jun 2002
Subject: What market COULDN'T use Apple's help?

This has been a common sentiment throughout Apple's history. Some device market is botched by corporations who are brainless and/or just don't try, and people start to think about what Apple would do. I remember reading an article in MacWorld (or was it MacAddict?) about a decade ago imagining how much Apple could improve simple devices like alarm clocks (and the article raised some good points).

But Apple will not bail out every market that's plagued with lackluster products and witless companies. At some point the HDTV industry will just need to get a clue.

I think this is one of the markets Apple will (wisely) stay away from. I can't imagine why they'd even want a piece of the TV set pie. Aside from that, most of the damage has already been done; there's only so much Apple could do to de-mystify the hardware (connectors, tuners, etc.).

View Name:Guest
Subject:
View Name:Guest
Subject:
Close Name:Mikuro Posts: 448 Joined: 15 Jun 2002
Subject:

Quote
Guest wrote:
"I think this is one of the markets Apple will (wisely) stay away from. I can't imagine why they'd even want a piece of the TV set pie. " ---

For the exact same reason they (Apple) took a huge bite of the music industry!!

When people get tired of commercial TV, and at the same time streaming or store and forward video including HD comes of age off of the Internet pipeline, then it would seem obvious that Apple can do what they did for Music(!) to video and HD video explicitly. I presume Blue Ray burners will be ubiquitous sooner or later in all Macs just as the Superdrive was one of the first built in DVD burners.

Oh don't get me wrong, I certainly think Apple wants in on the movie delivery market — they're already selling videos on the iTunes store, after all — I just don't think they'll start making HDTVs. An "elegant, all-in-one flat-panel HDTV" just doesn't seem like Apple's thing to me. They wouldn't have enough control to do anything much better than what's already out there, anyway. Apple is all about control.

Quote
Guest wrote:
HDTV is not that complicated. Most people need only 3 things, A TV, an HDMI cable, & a cable/satelite box. Plug it all together and then turn to a HDTV channel, and you'll wonder how you ever looked at TV before.

But some HDTVs don't even have HDMI ports, which means they won't be usable with some HD sources, and they won't provide full HD resolution with others. Also, there are "HDTVs" that do not offer full 1080 resolution at all. Some don't even have tuners for standard over-the-air HDTV broadcasts. And as for cable and satellite, that's the #1 gripe I hear: "most of the channels aren't HD!" All of this has consumers confused and angry. It's a mess. Some early adopters are already screwed, and so are many newcomers who haven't spent a lot of time researching it, assuming that anything on the market will "just work" like every TV they've ever bought in the past. Consumers don't want to have to be experts to buy a TV. But the industry has turned the "idiot box" into something that requires research.

As for finding HD content, that's one area Apple could help (and probably will, with "iTV" and iTunes), but I don't think they'll be replacing cable/satellite services, or even competing with them directly.

View Name:Guest
Subject: Not complicated?
View Name:Guest
Subject: Not Complicated?
Close Name:deasys Posts: 259 Joined: 08 Apr 2003
Subject:

Quote
Guest wrote:
HDTV is not that complicated. Most people need only 3 things, A TV, an HDMI cable, & a cable/satelite box.


...or an antenna.

In fact, the quality of over-the-air (OTA) HDTV is noticeably superior to the same programming on satellite or cable. It's free too.

Close Name:cdb Posts: 11 Joined: 15 Aug 2006
Subject:

Quote
davebarnes wrote:
I am a geek.
I extremely knowledgeable about computers.
I know a lot about audio.
But, I am flummoxed by TV.
My wife and I have decided that we won't buy a new TV until our current Sony CRT bites the dust.
I am watching all my friends spend money on new TVs and have lousy images on most shows.


I concur with all you say. I think the main thing is I'm a geek with most consumer electronics, but with TV, I'm "just" a consumer.

I am also waiting, but at the moment, I'm not sure what I'm waiting for. I have some vague feeling that the current set of consumer-priced HD-ready TVs on offer in the UK aren't going to offer full HD service up to 1080p, and I don't know if that's what I should wait for. I don't have the motivation to spend time working out all the issues so, until the industry explains it to me, I'll spend my cash (more likely credit!) on something else.

Close Name:cdb Posts: 11 Joined: 15 Aug 2006
Subject: Resolution Issues

Quote
Guest wrote:
If you get an HDMI connector you can hook up some future high res devices. ... Resolution issues exist, but they also exist on computers.


I don't like the word "Some" - with the 'old' system, I could hook up any device, including future devices (until someone stops supporting 'old' connectors, of course).

Virus issues also "exist on computers", and people had to learn how to overcome them just to be able to use their computers safely. Consumers should not have to think about resolution issues when plugging in and using a TV. The computer model should never be used when talking about TV.

TV should not need to go through the "Plug & Pray" phase, or consumers will do exacly what I'm doing for now, and stay away in droves.

Close Name:Jonkun227 Posts: 238 Joined: 02 Mar 2004
Subject:

Quote
Mikuro wrote:
Oh don't get me wrong, I certainly think Apple wants in on the movie delivery market — they're already selling videos on the iTunes store, after all — I just don't think they'll start making HDTVs. An "elegant, all-in-one flat-panel HDTV" just doesn't seem like Apple's thing to me. They wouldn't have enough control to do anything much better than what's already out there, anyway. Apple is all about control.

Have you seen the 30" "Cinema" display? Have you seen an iMac? How about the ever-increasing size of the iMac display? So how are large, high resolution screens in gorgeous-yet-highly-functional packages so hard to imagine? Throw in an HDTV tuner and a Blu-ray player. Maybe a hard drive and FrontRow. Talk about iTV.

I have no trouble imagining this. Personally I hope they don't try to do an iMac on steroids, because I prefer my computer and my TV to be separate devices. Otherwise what would I do when my wife wants to watch Bringing Home Baby or Baby Story or Doctor 90210?

But the market is there. I've mentioned before that I'm a Sony rep on the side. If there's anything the market needs it's Apple-style solutions.

I think the best thing Apple could do is excel at one format. Instead of offering micro-projection a la SXRD or DLP and true flat panel LCD like Bravia and others, as well as multiple resolutions and input options, Apple could just pick one. They seem to be married to LCD flat panels, so why not that one? Just avoid the rear projection market altogether. And only produce 1080P units. No 720, no 1366x768, nothing but 1080P. Just show consumers that it's the right choice (whether or not it actually is).

The only thing left would be to choose the size of the screen and the size of the hard drive. And maybe the bezel color. Make it so universal that it plays every existing signal, and do their best to future-proof it.

They could very easily do for HDTV what they've done for the MP3 player.

Then again, anybody with Apple's dedication to solving problems instead of creating them (*ahem*sony*ahem*) could. Apple isn't the only company with fantastic solutions. I'd love to see Dyson get into the HDTV market.


- Jon

View Name:Guest
Subject: Why I buy AAPL every chance I get
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