I'm Apple's target demographic. We have lots of TVs -- a 50" plasma, a 43" plasma, a 36" crt, and three 32" LCDs. We have five DVRs (not counting PCs). I sit with the TV on all day and multitask most of the time. When I'm out of reach of a TV, I have a portable device on the table.
Unfortunately for Apple, I'm not ready to settle down with any provider and, even if I were, it wouldn't be apple. Having had cable and satellite, I now have OTA. While I am currently subscribed to Netflix, all of my set top boxes are multibrand (at least Amazon and Netflix), and I still buy the stuff I want. The device on the table is usually a tablet, but I'm just as happy to stream content to a laptop.
Most of the time my TV is on, it's playing a four hour block of sitcoms I record each afternoon. After that, it's 'whatever is on' (OTA), then 'something new' (netflix), or 'something I feel like watching' (my media library).
If entertainment became very inexpensive and very compelling, and the internet became very reliable and ubiquitous, then we'd all plug in. That's not the case. Service is increasing in price while porgramming deteriorates, the internet is not yet ready for streaming media at many times of the day and in many parts of the world.
If Apple is counting on profiting from TV, they must think their current customer base has more money to share.
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