Apple TV or XBox: Which Is the Living Room Winner?

Netflix (NFLX) and Microsoft (MSFT) announced a deal yesterday that allows Xbox 360 owners to download movies through their game consoles, which appears to be another step in the software company’s Trojan Horse approach to winning the living room/media-server wars. Will this give it an edge over Apple (AAPL) TV?

MG Siegler seems to think so — he’s dropped his earlier championing of Roku’s media server box and is now calling Microsoft the winner. I’m not so sure just yet, however. Apple TV has its flaws, but so does the Xbox, as more than one person has pointed out (Chris Albrecht of NewTeeVee still likes the Roku server, and so does Webomatica).

I’ve been looking for a media-server solution for some time now. I’ve used a repurposed desktop PC that I hooked up to the TV, and I bought a MediaGate audio/video server (essentially an external hard drive with audio and video output jacks) which unfortunately isn’t working at the moment, and I’ve thought about buying an Apple TV or an Xbox or a Mac Mini — the latter being what my friend Rob Hyndman uses as a media player for all his movies, music, photos and so on.

The Mini is about twice the cost of the Apple TV, but it has more features because it’s a full PC. The AppleTV and the Xbox are about the same price at $350 or so (not much more than my MediaGate drive cost), but of course one plays games and the other doesn’t. That doesn’t mean all that much to me — although I like video games, I’m more interested in the media server part of the equation. The Xbox will play pretty much any kind of Divx, Xvid and other video formats, which as far as I know the AppleTV won’t. That could be the deal-breaker for me.

One of the biggest issues for a Canadian, however, is the amount of content on either box, which is underwhelming at best — not so much when it comes to movies, but certainly when it comes to TV shows. If what you like is anything made by the CBC and the occasional CTV show like Little Mosque on the Prairie, then you are probably going to be in heaven. Otherwise, you are out of luck.

Disclosure: None

Comments

[Andy Zaky:]

The problem with Xbox 360 is that it's a video game console. Enough said. It simply doesn't appeal to a wide enough audiance. The average female is not going to buy an Xbox just so she play movies on her television set. She is far more likely to buy an AppleTV however.

Moreover, the interface on the Apple TV is far more appealing, efficient and eloquent than the Xbox 360's as the AppleTV is narrowly tailored for the purposes of delivering the wide breadth of media content to the end user. I've used both for media, and AppleTV simply kills Xbox on this front. You're comparing a high school football team to the NFL here.

Another problem with even thinking there's a contest between the two is that while Apple owns "merely" 70% of the legal music download market, it owns a staggering 90% of the video download market depsite its limited content. Why? Because iTunes basically craps on everything else.

Finally, and most importantly, people are not going to simply "leave" iTunes and their iPhone - Mac - AppleTv - iPod - iTunes ecosystem for the Xbox 360. If you own a 360, then I could undestand how one might go with this system. But if you own a Mac, iPod Touch, iPhone or use iTunes, you're far more likely to use an AppleTV.

If you're interested in the Apple TV and its potential impact on the video market, you could read my article on the subject published here at Seeking Alpha:

seekingalpha.com/artic...

2008 Jul 15 04:13 AM

[PK de C'ville:]

Mathew!

"The AppleTV and the Xbox are about the same price at $350 or so..."

That's probably Canadian, but in the US we're paying $229.

The xBox weighs in at $400+ w/ hdmi (cable incl) and 120gb drive.

2008 Jul 15 06:29 AM

[joeYYYY:]

For the Xbox in addition to the cost of the box you will need to pay 50$ per year for the Xbox gold membership (to buy content at the Xbox marketplace) AND at least 9$ per year for the Netflix service (which will get 1 DVD by mail and their all-you-can-eat VOD). This comes to 50+12*9=>158$ per year.

You can download content for this content, but you will pay this amount EVERY year no matter what. With AppleTV you pay only for the content you buy. I find this way much more appealing. This way if I don't have the time to see a movie or TV show I don't pay anything.

Also, adding to andyzaky argument with respect to the interface please see the new interface that will be coming to the Xbox: www.engadget.com/2008/.../
This is clearly an interface for gamers, it will not appeal the general public.

2008 Jul 15 07:03 AM

[Jon T:]

Another reason for the TV to move ahead of a games console like XBox is its remote control from the iPhone and almost certainly in future as a remote games controller... It already is for games on the phone so why not for the TV too?

2008 Jul 15 08:44 AM

[Tolga Berkman:]

JoeYYYY you actually don't have to pay 50$ because purchasing media content can be done with the XBOX LIVE silver package, which EVERY person with an internet connection and a 360 has access, despite this however if I were to go for media I would go Apple TV, the 360 simply is not DESIGNED with media in mind.

2008 Jul 15 08:56 AM

[joeYYYY:]

Tolga,

"More than half of Xbox 360 owners pay $50 a year for a "gold" membership, which will be required for access to Netflix's "Watch Instantly" library. They also must subscribe to Netflix, which charges $9 per month for the least expensive plan that includes unlimited streaming."

This was taken from this article:
biz.yahoo.com/ap/08071...

2008 Jul 15 10:07 AM

[bearchow:]

With the appropriate plug-ins, AppleTV actually will play anything QT could play just like a Mac with Front Row would, since it is just playing whatever streaming from your Mac! You will have to hunt around online for those! (Apple actually lists a bunch of those on their support page) That means, a lot of avi, Divx etc files, I found I could play 50% of all avi files I have (but then it is probably I haven't had time to update all the plug-ins!) ... I know it requires some extra efforts ... if you are willing to spend even more time, you can always convert your media files into QT readable formats ... worth it? That's a personal decision ...

2008 Jul 15 01:42 PM

[Toni:]

Oh my GOD, below 170.

Doris ?

2008 Jul 15 03:46 PM

[Tom B:]

About the iPhone/iPod touch as a media controller:

www.louisgray.com/live...

2008 Jul 15 04:13 PM

[Tolga Berkman:]

Oh I apoligize JoeYYY I didn't see that.

2008 Jul 16 12:04 PM

[Tolga Berkman:]

Oh I apoligize JoeYYY I didn't see that.

2008 Jul 16 12:04 PM