Why Cable-Ready TVs Won't Kill Apple TV, Netflix Streaming
Why not? First, there's no guarantee this technology will take off. (Hello, CableCARD flop?) Right now these are press releases: Wait and see how many TVs get the software, whether people care, etc. And Tru2Way only works for cable, so if you're a satellite subscriber or subscribe to fast-growing telco TV services like Verizon's (VZ) FiOS or AT&T's (T) U-Verse, you can't use it.
Second, we think Tru2Way and gadgets like Apple TV and Netflix's new streaming movie box are addressing different needs. Don't forget that digital cable with bells and whistles is around $80 a month and rising; Netflix's all-you-can-eat streaming service is free with your DVDs-by-mail subscription. And Apple TV -- no monthly service fee -- hooks into other things like your photo slideshows, music library, Google's (GOOG) YouTube, and iTunes podcasts. (And someday soon, we hope, the Web, via a wireless keyboard.)
In short: We see Tru2Way replacing your set-top box. But we see something like an Apple TV/Netflix box replacing your DVD player.
With Tru2Way, the cable industry has a chance to make your living room less messy -- fewer cables -- which is nice. And Tru2Way promises to branch out: It could someday "also make it easier for consumers to receive the full range of cable-based services on other devices, such as laptops, MP3 players, and cellphones," the WSJ boasts. But until we see that -- and until people adopt these devices en masse -- we still think Apple and Netflix have as good a shot as anyone at taking over your entertainment center.
See Also:
Apple's Living Room Archrival: Netflix, Or Comcast And Microsoft?
Exclusive: Blockbuster Reveals Netflix-Killing Box
The $100 Netflix Box: A Decent Start, But Won't Change Game
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Most people would rather keep the $99 bucks, and use that towards their regular Netflix by-mail service. If you add up the $99 + $8.99/mo that's roughly $17.24/mo they are paying the first year...that's a lot of money for most folks, especially for VHS quality and second rate titles.
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