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Apple TV + DVR = Billions?

Updated 4 years ago
Published Mar 16th, 2008 10:28AM EDT

A series of patent filings from October 2006 were recently uncovering, revealing a logical next step for Apple’s increasingly popular Apple TV service. The patents essentially cover the integration of TiVo-like DVR features into the set top box that would provide guide, recording and playback-control functionality to the user. DVR integration would certainly go a long way towards taking Apple’s product from a geek toy to big player in the home entertainment game. In a note to clients, American Technology Research analyst Shaw Wu speculated that the addition of DVR functionality could boost Apple TV revenue from a paltry $100-125 million per year well into the billions. Wu believes that additional manufacturing costs brought on by added DVR functionality would be insignificant at $12-$15 per unit, and added appeal and value would be immense. “We (as well as many others) have been clamoring for DVR and/or TV tuner capabilities since the introduction of Apple TV 1.0 in January 2007 and even Apple TV 2.0 with movie rentals in January 2008. We are pleased to see Apple listening to customers similar to what it has done with iPhone, with adding native access to Exchange server.” Going off on a brief tangent, Wu also mentioned that according to his sources, a Blu-ray deal between Apple and Sony is near completion. Wu’s note closes with a reaffirmation of AAPL’s buy rating and a target of $175. We might hold on a bit longer but you get the idea; Apple is certainly showing no signs of slowing down as it continues to find new ways into pockets well outside of its cult-like following of old.

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Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.