An Apple for Your Eyes

Last month, the Cupertino, Calif.-based company delayed the launch of the much anticipated gadget designed for streaming video and other content from computers to TVs.

The device, which can wirelessly stream or download iTunes videos, podcasts and music, is priced at US$299.

Accessing the Living Room

In recent years, consumer electronics makers have upped their efforts to provide consumers with greater access to movies, videos, music and other media stored on their computers through other devices, including televisions.

"The market is evolving around the increasing desire to get content to consumers when and where they want it," Harry Wang, an analyst with Parks Associates , told MacNewsWorld. "Apple has the ability to be the first to bridge the gap between the PC world and TV side."

Although Apple has touted the device as a "DVD player for the Internet age," Wang said the set-top box has some limitations -- for example, it only works with television sets that accept newer components or HDMI cables. Many older, standard definition TV sets do not come equipped with the proper components.

However, "consumers who don't have TV's capable of supporting Apple TV aren't likely to be the ones in the market for it," he added.

Bridging the Gap

The arrival of Apple TV comes as Microsoft (Nasdaq: MSFT) and other big technology companies are also trying to marry the computer and television.

Cable providers have jumped on the bandwagon of catering to customers who want to record and play digital content.

There has long been growing consumer demand to push content from their computers into living room television sets.

However, before Apple TV the process was considered too technical for the average consumer.

"Apple didn't invent this category of device but they did focus on areas that make what they've done stand out among the other players in the market," Michael Gartenberg, research director at JupiterResearch, told MacNewsWorld. "Networking companies' digital media adapters have been geared toward the high-end enthusiast, not the mainstream consumer."

Apple TV is intended to appeal to the masses and that could be a big differentiator in the marketplace, according to Gartenberg.

Apple vs. Microsoft

"Apple's offering is an end-to-end solution," he noted. "iTunes is really becoming a platform for other devices."

Microsoft has also moved to garner part of this market, announcing plans in January to turn its Xbox 360 gaming console into a standalone set-top box for Internet TV. The move is expected to add to Microsoft's existing online video effort, which is centered on its line of Media Center PCs.

Apple TV allows users to access digital photos and homemade videos from their computers, but it cannot access online video offerings such as YouTube .

Although it comes with a 40 GB hard drive, the device does not record live broadcast television.