Apple takes light bite of TV market

Apple has refreshed its Apple TV product, including a smaller box and premium content streaming, but stopped short of taking a big bite out of the TV market.

Last night at a press event, Apple chief executive Steve Jobs unveiled some changes to the product which he has previously described as a "hobby".

At around 80% smaller than the previous generation, the redesigned Apple TV box features built-in HDMI, Wi-Fi and Ethernet, along with an internal power supply.

However, the biggest change is in the content, which streams directly to the box without needing to worry about syncing or storage.

Apple has agreed content deals with a range of movie studios and broadcasters to make thousands of films and TV programmes available to rent on the device. First-run movies will cost £2.49 in standard definition or £4.49 in high definition.

In the US, Apple TV users will also be able to rent SD and HD TV shows from ABC, Fox, the Disney Channel and BBC America from 99 cents (64p). All programming will be advert-free.

The box will also stream content from Netflix, YouTube, Flickr and MobileMe on the TV screen, as well as music, photos and videos from home PCs and Macs.

The new Apple TV will be available later this month for a suggested retail price of £99 including VAT. Pre-orders are already being taken on Apple's online store.

Users will also be able to control Apple TV with their iPhone, iPad or iPod Touch by downloading a free Remote app from the App Store.

In a statement, Jobs said: "The new Apple TV, paired with the largest selection of online HD film and TV programme rentals, lets users watch Hollywood content on their HD TV whenever they want.

"This tiny, silent box costing just £99 lets users watch thousands of HD movies and TV shows, and makes all of their music, photos and videos effortlessly available on their home entertainment system."

The new strategy for Apple TV represents more of a refresh for the product than the bold new direction that some people were expecting, such as the launch of a dedicated App Store for the TV screen.

At the event last night, Jobs said that Apple TV hasn't been a roaring success since its launch four years ago, but there are people who really love the product.

Apple has learned that people want SD and HD Hollywood movies and TV shows to rent at low prices to watch on their TV screens, said Jobs.

However, he claimed that most consumers don't want the TV to become another computer, which is clearly a reference to the strategy of Apple's rival Google.

In the autumn, the search engine giant will launch its Android-powered Google TV service in Sony products in the US, which will enable users to browse the open internet on their TV screens.

It seems that Apple is content for others like Google to make bold strides into the TV space as it concentrates on its massively successful mobile devices and Mac computers.

However, only time will tell if Apple really is content to miss out on the highly lucrative market for home entertainment on the big screen.

Also yesterday, Apple's thunder was somewhat stolen by Sony, which unveiled its new movies and music on-demand entertainment services.