The Apple TV, once touted by digital-guru Steve Jobs as the device that was going to change the way people watch TV, apparently hasn't been selling that well.
Analysts blame the poor sales on the loss of very popular content from NBC Universal and the lack of a media rental feature. Both of these shortcomings have caused industry analysts to rethink their earlier position on the device.
“In addition to the 400,000 Apple TV units we estimate Apple has sold thus far, the company will be lucky to sell another 400,000 in the year-end holiday rush, short of our one million estimate,” said Forrester analyst James McQuivey. "Unfortunately, the same lack of interest in iTunes video will mean the iPhone and the iPod touch have less video momentum to ride.”
We may be speaking out of turn here, but the device lacks basic disc playing abilities, has no DVR functionality that can be paired with existing cable/satellite services, and even with NBC onboard, iTunes didn't have all the most popular content according to Nielsen ratings. The device certainly isn't without its uses, and we can't argue too much about the price, but it might take a bit more than just iTunes in a box to change the way we watch TV.