Analyst Expects Apple TV to Carve Out Up To 30% of DVD Market

Authored by Jay Baage on February 21, 2007 - 6:43pm.

Deutsche Bank analyst Chris Whitmore says that Apple’s set-top box device for consuming digital media, expected to hit stores next week, has the potential to carve out a large chunk of the current DVD market:
“It’s conceivable” that Apple’s living room entertainment box—rival to Microsoft’s Xbox—could carve out 20 to 30 percent of a $26 billion market in a few years, Mr. Whitmore said Tuesday in a report.

Red Herring, that has red the report, writes that the Deutsche Bank analyst believes that Apple stands to first gain from the roughly 40 million people who use iTunes, but Apple TV will eventually eat into the business of makers of DVD and CD players.
Apple has announced that it had struck a deal with Paramount for iTunes distribution. Last week Apple announced that it had finalized a deal with Lionsgate as well for iTunes.

Bill Gates laid out Microsoft’s Xbox IPTV strategy at the Consumer Electronics Show in Las Vegas just days before the Apple TV debut, setting up a battle royal between Microsoft, Apple, and Sony.

Related Link:
http://www.redherring.com/Article.aspx?a=21384&hed=Apple+TV%3a+DVD+Killer%3f

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Comments

Interesting

Submitted by shane (not verified) on February 22, 2007 - 7:58am.

While I'm not sure that the Apple TV will make such an impact on the DVD market, I'm excited about its release. I think it is the first real device that will start to transform our living rooms into a true IPTV system. http://www.applehdtv.net