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Why Apple TV Won’t Kill Tivo

by Jose Alvear

According to Alan Graham, of ZDNet’s Web 2.0 blog, Apple wants to kill off Tivo. Already, research firm Frost & Sullivan said recently that Tivo would cease to exist in its current form by 2010.

But the blogosphere is full of criticism for Apple TV. Only the really dedicated Apple fan-boys believe that Apple TV is something really special. Many see it as just another media extender.

Despite all this, Graham believes that Apple TV is poised to knock off Tivo and even become better(!) than Tivo.

Most interestingly he analyzes the cost of using Apple TV and iTunes vs. using cable and Tivo and says that he can save $645 by using Apple TV. He compares the two choices using actual prices for cable service, Tivo costs and Apple TV/iTunes price of content.

Point #1. It’s a Flawed Analysis.

Graham’s analysis is flawed because he doesn’t take into consideration the need for ALL costs to use the Apple TV–it’s not a stand alone device since it requires a computer and Internet connection to work.

So he should add the price of computer (PC or Mac) and Internet access, as well as the price of Apple TV and the actual content. Tivo, on the other hand, is a true stand-alone box and using it with a computer only enhances the experience and gives you access to more of your media.

Point #2. Apple TV Timeshifts?

Graham calls Apple TV a Time Shifting device.

“The point of this device is to replace live television, not enhance it. Just like a DVR, the Apple TV time-shifts content, at least 24 hours from the moment it was originally broadcast. Same function, different approach.”

Um, not really. It’s not the same function at all.

Apple TV only time shifts content that resides on your computer hard drive or downloaded through iTunes. It does not time shift live TV. This is closer to “video-on-demand”. Calling Apple TV a “time-shifting device” is like saying that a DVD does timeshifting because you can pause and rewind your movie.

Also, iTunes offers TV shows but only after they aired over 24 hours ago. That’s a long time to wait, and frankly, that’s not time shifting. That’s time limiting. Don’t put a restriction on when I can watch something.

Point 3: Using iTunes to Download TV Shows Doesn’t Compare to Cable.

Lastly, Graham makes an apples to orange comparison between iTunes/Apple TV and the price of cable for one year. How can you fairly compare the choice you receive with cable compared to the limited amount of TV content in iTunes?

Perhaps a future version of Apple TV can get past all of these issues. But for now, Apple TV has a lot of catching up to do.

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