Apple TV Set To Be Bigger Than iPod
03.19.07 - 10:34am
With the launch of Apple TV, Jonathan Hoopes a Think Equity analyst has upped his “Buy” rating on apple to $120.
Hoopes writes ” ‘We think the Apple TV/iTunes combination could become as disruptive to legacy video purchase-and-consumption behaviour as the iPod/iTunes combination has been to the traditional music business model.”
Basically the analyst believes that combined with iTunes Apple TV is set to change the way the way the consumer watches DVD’s. After all why rent them when they are now becoming so simple to store and download movies as well as recording TV shows.
The device is, “an ideal conduit for multiple services including DVR, paid-for content (such as video-on-demand), gaming, or advertising,” he writes, adding, “we identify and value these business opportunities at $5.3-$11.4 billion.”
Hoopes expects the device to add at least $10 per share in gains for the company.
Hoopes is not the only one applauding Apple TV. David Haskin reports for Computerworld, “Some industry experts say Apple TV, due to be released this month, will be a huge iPod-like success, doing for digital video what the iPod did for audio. Some even think Apple TV could be bigger than Apple Inc.’s much-ballyhooed iPhone, which will be released in June.”
“‘Long term, strategically, Apple TV as a revenue-generating platform is much bigger than iPhone,’ said Jeff Heynen, directing analyst for broadband and IPTV for Infonetics Research. ‘It’s a $300 device that multimillions of people will put in their homes vs. a $500 device [an iPhone] in a market that’s saturated with BlackBerries and similar things,’” Haskin reports.
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