Apple’s press conferences are popular, highly anticipated events, and for good reason: they usually unveil some fantastic upgrade to their already impressive product line or come up with an entirely new must-have gadget. Apple may not be perfect, but they have a stellar success record.

Those are some very shiny iPod Nanos.
This all really makes me wonder what they were thinking when they announced the updated model of their take on cable, Apple TV, in yesterday’s conference.

Now, don’t get me wrong: this new version of Apple TV is actually pretty snazzy, so far as technology goes. It fits in the palm of your hand and has very little memory, but that’s okay: it focuses on renting shows and movies, all in HD if available. Apple has already made deals with ABC, Fox, BBC America, and the Disney channel to have their shows available, as well as iTunes’ entire movie rental store and Netflix’s streaming capabilities. That’s right: the Apple TV will stream movies from your Netflix account. It will also stream content from MobileMe, Flickr, and YouTube; its wifi capabilities also allow it to connect to your computer, your iPad, your iPhone…the possibilities are endless.

Also, it’s cheap. The tiny set-top box goes on sale in four weeks for $99, with $0.99 TV show rentals and $4.99 movie rentals, but who worries about those rental fees when you’re already using it to stream Netflix?

The technology behind the Apple TV is well thought out and put together, that much is certain. But wait – if I’ve spent half this entry praising it, why do I wonder about Apple’s strategy?

The answer to that question can be summed up in another, shorter question: where’s the market, Apple?

Consider Apple’s marketing strategy: all of their devices are marketed towards younger consumers, people more apt to go for the newer technology, better connectivity, or just the “ooh pretty shiny” of it all. In Mac commercials, the Mac is a young, cool, savvy guy, while the PC obviously represents your technologically illiterate dad/grandfather/teacher/insert other stereotype here. iPod advertisements feature silhouettes of people generally in their teens or early twenties dancing along to the latest pop hit.

Admit it: you can't see your grandparents busting a move like this.
This is the generation that stereotypically pays attention to announcements for new technology. This is the generation that would be streaming video from Apple’s press conferences to their desktops, laptops, and tablets. This is the generation Apple wants.

This is also the generation that has already figured out how to stream Netflix to their TVs via their laptops, desktops, and gaming systems. They watch their TV and movies online. In order to watch YouTube, they actually go to YouTube. In short, the Apple TV has very little to offer this generation.

What about the previous generation, the parents and uncles and teachers typified as PCs? Would they ever buy something like this? Personally, my guess is no: this generation either learned to stream things from their kids’ tech savvy, or they already have a cable or satellite hookup of some sort. Given that Pay-Per-View tends to come standard on these hookups and DVR, which Apple TV does not have, is an add-on for small cost, it would make more sense for the generation already happy with their hookup to simply stay with it. If they wanted Pay Per View shows and movies, why not just pay for them with the company they already have? An old adage states, “if it ain’t broke, don’t fix it.” As far as the previous generation is concerned, their current TV hookup quite simply “ain’t broke.”

Kit Eaton at Fast Company brings up a good point about the grandparents’ generation: Apple TV’s low price tag, combined with its ability to stream from MobileMe and Flickr, means that “thousands of folk will be buying one for Granny and Grandpa, to keep the oldies up on the latest family photos and videos.” Considering I know my Granny likes receiving actual photos in cards, I’m not sure this idea holds up for everyone’s grandparents; however, it is creative, and I would love to see Apple pick up on this aspect of it.

Where does Apple TV fit? Aside from the palm of Steve's hand, that is.
Now, all this isn’t to say that the Apple TV won’t sell. Generational observations have mostly been of the broad, sweeping type; there are certainly people who won’t fall in those categories and who will buy the Apple TV. Unfortunately, most marketing campaigns also happen to be of the broad, sweeping type. Apple might have to work to find and market towards the group who will buy this particular bit of their tech.

Do I think the Apple TV will flop? Certainly not. It has all of Apple’s trademark aspects of success: it keeps things small and simple, provides a high level of connectivity, and, for a change, is incredibly affordable. Plus, Apple doesn’t flop. They make very certain of that. The Apple TV’s big flaw is that it’s behind the curve; it’s promising a quick fix to a problem most people have already solved. To that end, Apple’s usual marketing strategies likely won’t work.

Will I buy an Apple TV? Nope; I’m one of the people who’s already figured out their movie and TV streaming needs. Am I interested to see what Apple does with their little set-top box? You bet I am. If nothing else, creativity is what Apple does best, and I look forward to seeing what they’ll do.

Katherine

Deal of the Day: RCA L32HD32D 32-Inch LCD/DVD Combo HDTV, because you need something to hook your Apple TV/Wii/360/PS3/streaming device of choice up to, right?