• Gigaom, Wednesday, December 28, 2011 2:41 PM

Analysts are having a field day with all the rumors brewing about the new Apple TV. Shaw Wu of Sterne Agee chimes in by noting two aspects supposedly crucial to the product's success: the device format itself, and content.

Wu thinks Apple should produce both a set-top box and an integrated smart TV solution, but Gigaom's Daniel Etherington begs to differ: "Apple would also have to contend with the risk involved in offering a low-cost device with essentially the same feature set of a high-priced one, with the added challenge that its own integrated smart TV will come in a maximum size of 37-inches, if reports prove accurate. What incentive is there to opt for the Apple iTV over a set-top box in that situation?"

Etherington does agree with Wu's views on the importance of content, including customized programming. "IPTV might be one option for Apple to provide live broadcast television, but streaming app-based solutions for very specific verticals are also starting to emerge," according to Wu.

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