Upgraded Apple TV Aims to Make Itself at Home in the Living Room
More diversification gives Apple a large number of
ways to hook customers into its ecosystem of products, software and services.
Which means new avenues for revenue and profit
Apple is finally getting serious about pushing
into our living rooms. That ambition will be underlined at an Apple event in
San Francisco on Wednesday , when the company plans to unveil an upgraded Apple
TV , a device similar to a set-top box that brings video and music from the
Internet to a television, according to people briefed on the product.
The upgrade, the first in three years, will
expand Apple TV's uses in gaming, including a redesigned remote control with a
touch pad that can double as a game controller, said the people, who spoke on
the condition of anonymity . Importantly , the new device will include support
for apps and games made by independent software developers.
The revamped device will share the event
spotlight with Apple's biggest moneymaker, the iPhone. The company once called
Apple TV a “hobby ,“ as it accounts for less than 5% of sales, so the prominent
billing this time highlights the aim of transforming the device into a
multipurpose entertainment product for homes.
The move will thrust Apple deeper into a
competitive market where few, including Apple, have made headway .While the
living room has been something of a holy grail for many tech companies, with
Sony rolling out its PlayStation game console, Microsoft its Xbox console and
Amazon its home devices like the Amazon Echo, few can claim to have become the
go-to for online services in residences.
Apple TV itself has long languished.Apple
unveiled the product in 2007, but its offerings were not as thorough as what
people could get with cable subscriptions. A recent Forrester Research survey
found that only 19% of online adults in the United States were interested in or
used an Apple TV. “The most important thing about the Apple TV announcement is
it becomes a broader utility box,“ said Peter Csathy , chief executive of the
media consulting firm Manatt Digital Media.“Then it can ultimately become the
Trojan horse for all kinds of services in the home that, in turn, let Apple
sell more hardware.“
Apple declined to comment on the new Apple TV or
other details of the coming event. Several online publications earlier reported
on the Apple TV and other products expected Wednesday .
Building up more of a presence in the home is
important for Apple as it seeks growth from new avenues. The compa ny relies on
the iPhone for the majority of its revenue and profit, and Tim Cook, Apple's
chief executive, has broadened product lines into wearables with the Apple
Watch and new services such as Apple Pay and Apple Music. More diversification gives
Apple a large number of ways to hook customers into its ecosystem of products,
software and services.
For years, Apple focused more on partnerships
with TV studios and other content makers to bring programmes to Apple TV and
its mobile devices. The company this year announced an exclusive deal with HBO
to bring HBO Now, an app that lets users stream HBO's programming without a
cable subscription, to the iPhone, iPad and Apple TV . Apple has also held
talks with several leading television groups to offer an Internet-based TV
service for its iPhone, iPad and Apple TV , but the service will not be ready
for an announcement next week, according to people briefed on the talks.
Apple also hinted at more serious television
ambitions in 2013 when it hired a Hulu executive, Pete Distad, to work on Apple
TV . At Hulu, Distad oversaw content distribution and subscription initiatives.
Now the focus has expanded to more than TV
content. The Apple TV's support for apps and games made by thirdparty software
developers as well as the redesigned remote control could broaden the device's
appeal to make it more of a competitor to the Xbox, the PlayStation and the
Nintendo Wii U.
“More interesting than content deals is what
happens in the app store,“ said Ben Bajarin, an analyst at Creative Strategies.
“Now that Apple TV is a software development platform, developers can now write
for a 40-inch screen. That will immediately bring more interesting content and
apps to the device, which is at this point more compelling than trying to cut a
bunch of content deals.“
Apple is also raising the price of the device to
$149 from $69, which puts pressure on the company to deliver expanded
capabilities that go beyond what Apple TV and its rivals now offer.
All of this doesn't mean that Apple won't also
focus on the iPhone on Wednesday . As is now tradition each September, the
company plans to introduce new versions of the smartphone, with a higher
quality camera and a capability known as Force Touch, which lets users control
some of the software by exerting pressure on the touch screen, according to
people with knowledge of the products.
Apple will also showcase updated iPads. And the
company is putting the finishing touches on a revamped iPad keyboard that may
be available by the end of the year. Other products that may surface include
new metal finishes for the Apple Watch, including a less expensive gold
version. In addition, Apple is set to release iOS 9, the next version of its
mobile operating system, which will include improved search capabilities with
Siri, the voice assistant, among other features.
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Katie Benner & Brian X Chen
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© The New York Times
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ET8SEP15
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