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Apple TV to Become a Real TV?

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In February next year, receiving over-the-air television signals will require either a digital converter for current analog TVs or a digital TV set, creating a huge potential market of people looking to upgrade home viewing technology. Could this be the area for the mysterious “product transition” Apple CFO Peter Oppenheimer mentioned last month?

We would like to think so. Of all the products that Apple could do, a smart TV makes the most sense. It would be like the AppleTV, but without a separate box to hook up. All the functions of the AppleTV would be built into the new Apple TV.

Netflix is already getting into this sector by teaming up with hardware makers to stream movies directly to living-room devices — a DVD player from LG, a movie box from Roku and MS’s XBox. Building the AppleTV’s smart functions into a flatscreen LCD TV would differentiate Apple’s offering from competitors like Samsung and Sony, and help the company dominate the emerging market for streaming television programming and movies the way it has come to dominate music distribution through iTunes.

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