Understanding Apple TV

From a business point of view, the iPod was never about making yet another audio/mp3 player. It was an attack on the music industry's model of making money by selling albums (physical CDs). As I predicted when the iPod was launched, two billion songs sold on iTunes (and the end of Tower Records) confirm that there is a market for music that doesn't depend on selling entire albums or distributing physical objects around the world. Anecdote: Back in 1983 a friend asked me in high-school what would happen with music, given the launch of CDs. I described how within 20 years we'd be able to carry our entire album collection with us, in a little box about the size of a sugar-cube, plus headphones and batteries.

Apple TV incarnates a similar attack on the TV and movie industries. Why pay $50-120 per month for a cable package when one could for much less money subscribe to entire seasons of specific tv shows and download select movies on demand? Apple TV will do to cable channels and DVDs what the iPod did to CD stores and music albums. It doesn't hurt that the device also seamlessly integrates music, photos, and movie trailers.

A perfect development would be the integration of a tivo-esque DVR in it.

One thing I do find disturbing in that device is the reliance on iTunes to synchronize everything. iTunes has become everything but the kitchen sink -- and it will unfortunately get worse with the June introduction of the iPhone.