There's a new box for your HDTV that sells for well under $100, streams premium content over the Internet from Netflix, Amazon, and Major League Baseball, and even supports "apps" like Pandora. Think it's from Apple? Think again.
The Roku HD
Two years ago upstart Roku started selling a set top box that did nothing but stream Netflix to televisions. Early this year the company rolled out an update that added significantly more new content to the device, with 50 app-like "channels" already out and many more on the way. Roku is just one of many startups selling devices that bring Internet content to televisions.
Everyone expected Apple to throw the gauntlet down this week on the fledgling IPTV industry's scrappy startups with a long awaited update to the AppleTV.
The online rumor mill buzzed with anticipation as yesterday's announcement drew near, with many "in the know" claiming the next version would be a revolutionary departure from the current product, running the same software that powers the iPhone and iPad. Geeks throughout the world were already dreaming up the television-based apps and using phrases like "[this] will change everything."
That turned out not to be the case.
The new AppleTV
Apple CEO Jobs instead introduced a less expensive and scaled down product that removed the internal hard drive found in the original and switched to a rental only model for purchasing content that alienated most television networks. The only new feature added was Netflix streaming capability. Yawn.
The new device will sell at $99, half the price of the old one. And while that's a great deal for an Apple product, it's more expensive than the innovative Roku.
Is the AppleTV a total dud? Definitely not. It's almost a no brainer for those with large content libraries purchased through iTunes. It will stream previously purchased content off of Macs, PCs, and even iPads and iPhones to an HDTV.
But for those without much purchased content, the $69 Roku HD is worth serious consideration. The Amazon streaming service works wonderfully on the device and is priced competitively with Apple's iTunes.
And there's more competition on the way. The makers of Boxee, a free software based TV product for computers, will offer the aptly named the "Boxee Box" later this fall, and Google will have an IPTV product available from a number of manufacturers later this year and next.
For once Apple is finding itself behind the rest of the market. While the industry stakes are high, these sub-$100 devices take out much of the risk for consumers. This will be a fun battle to watch.
The Roku HD is available now for $79 through Amazon (affiliate link). The new $99 AppleTV will be released later this month and is available for pre-order at Apple's website.
