Inbound Thinking

While catching up on my RSS feeds tonight I noticed a couple posts talking about a live event Boxee was planning. At the event they ended up announcing a Windows version of the software, integration with Digg, Tumblr and MLB.tv. The last item stood out the most, it’s probably the first time that decent web video content is available on a TV connected device, and a sign of things to come.

TV-connected devices seem to be few and far between, and none of them are any good. Microsoft gave it a shot with their Media Center edition of Windows. Netflix has Roku. There’s the Slingbox, and then there’s the AppleTV. I always thought of the AppleTV as an iPod for your television, but it could be so much more. In fact, it’s barely even fufilling the iPod promise. The iPod touch has far outpaced the AppleTV in terms of innovation: Browser, Games, App Store, etc. I have an AppleTV in my living room but I never use it. There’s just nothing compelling about it for me. Sure I could hook it up to my desktop and transfer some media over, but that’s not what I want. I would much rather have access to free, on-demand programs, a decent web browser, and maybe some games.

Now is the time for Apple to truly innovate on the AppleTV. Steve Jobs will soon be returning from his medical leave of absence and he needs a new project. The iPhone was arguably the primary focus of Apple’s efforts for the past couple of years, and they’ve totally wrapped up the market: Tens of millions sold in hundreds of countries, App Store with half a million apps and over a billion downloads. The iPhone project is done, not that there won’t be improvements but the most chalenging parts are far behind. Jobs could take the AppleTV and finally deliver on the promise it set forth years ago. Maybe the project needs an entire reboot with a new name that fits, like iPod TV or even iTV. Personally, I don’t think Apple will get into the TV manufacturing business, but it wouldn’t be unheard of: Apple loves making it’s own hardware even in super competitive spaces (see iPhone).

No matter Apple’s intentions, the stage is now set. Boxee is looking to innovate and hopefully dominate in a market that has been sorely underserved. Apple is the only established player who has a chance to succeed, if they’re up to the challenge. Luckily for consumers it doesn’t matter what Apple does, the market is going to grow with or without them.