Listen to Jobs:

The problem with innovation in the television industry is the go-to-market strategy. The television industry fundamentally has a subsidized business model that gives everybody set-top box for free, or for $10 a month and that pretty much squashes any opportunity for innovation, because nobody is willing to buy a set-top box. Ask TiVo, ask ReplayTV, ask Roku, ask Vudu, ask us, ask Google in few months. Sony tried as well. Panasonic tried. A lot of people tried. They all failed.

According to Apple CEO, we end up with table full of remotes, cluster full of boxes, bunch of different UIs. That’s the situation we have today.

All you can do is add a box under the TV system, Jobs said.

The only way that it’s ever going to change is if you can really go back to square one and tear up the set-top box and redesign it from scratch, with the consistent UI, across all those different functions, and get it to the consumer in a way that they are willing to pay for it.

And right now, there is no way to do that! – Jobs said firmly (damn…!)

So, that’s the problem with the TV market. We decided what product do we want the most: a better TV or a better phone. The phone won out. But there was no chance to do a better TV because there was no way to get it to market.

What do we want more: tablet or better TV? Well, probably a tablet, but it doesn’t matter because if we wanted a better TV there is no way to get it to market.

The TV is going to lose until there is available go-to-market strategy.

Otherwise you just make another TiVO. That’s the fundamental problem – it’s not a problem with technology, it’s not a problem with vision, it’s a fundamental go-to-market problem.

Is there any chance you partner with some cable operator? – Steve has been asked.

Then you run into another problem, which is: there is no cable operator that is national, he answered.

There is a bunch of cable operators. And than, this is not like there is a GSM standard where you build a phone for the US and it also work in those other countries. No, every single country has different standards, different government approvals, it’s very balkanized.

I’m sure smarter people than us will figure this out. But that’s why we say Apple TV is a hobby; that’s why we use that phrase.

Well, this could all mean that Apple focuses on iPhone and iPad, and they are not planning to introduce a new TV (new set-top box) in the near future. Hopefully there are people who see things differently: Engadget notices that Steve has all this stuff really mulled over – according to the guys at the tech blog this confirms that we’ll be hearing some next-Apple TV news at the WWDC10. TechCrunch even thinks that this all may push Apple to build televisions.

We hope Jobs hasn’t really figured out that there is no way to figure out good go-to-market strategy for the new TV by Apple.

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“The device is said to be quite small with a scarce amount of ports (only the power socket and video out), and has been described to some as “an iPhone without a screen,” says Engadget.

Engadget also claims that Apple will be focusing the new ATV on cloud-based storage, although there will still be an option to utilize a Time Capsule as an external storage component.

We can’t say we are surprised. We say: this is exactly what we expected to see happening.

First, Apple introduced iPad. What does the iPad have to do with Apple TV? “Well, take the Wi-Fi iPad, remove the screen and the battery, add A/V ports and presto, you have then new AppleTV hardware,” said awmyhr on his blog a few month ago. So, we already had the hardware.

Then, a job offer has been posted:

The Core Platform team within Apple’s Core OS organization is looking for a talented and inspired manager to lead a team focused on bring-up of iPhone OS on new platforms.

That was a first signal Apple was thinking of powering new platforms with iPhone OS; of expanding iPhone OS beyond iPhone, iPod and iPad.

“With the iPad having already been introduced, many believe the next logical device to receive the iPhone OS is Apple TV,” noted eWEEK. “Apple TV is the obvious choice,” confirmed Ezra Gottheil, an analyst with Technology Business Research.

Gottheil said the primary benefit that the iPhone OS would bring to Apple TV is its browser. “In addition to being able to play your own content and App Store content, you’d be able to browse the Web,” he said.

Later, Apple introduced iPhone OS 4. We got brand new, powerful OS.

And finally, Google introduced Google TV. If Apple have already been working on the new set-top box for a while (according to Engadget, “this project has been in the works long before Google announced its TV solution”), the only choice they had to cat the “oh!, ah!” Google TV disccusions was to do a controlled leak about forthcoming update to the Apple Tv. Besides, iPhone OS for Apple TV is just a logical response to Android powering Google TV.

Also, MacRumors.com reported that Intel’s forthcoming Google TV hardware platform to be found in Sony TVs and Blu-ray players and in a standalone set-top box from Logitech utilizes the same PowerVR SGX535 graphics processor used in the iPad. “Hardware similarities between Google’s television offering and Apple’s mobile devices further reinforces the idea that such a transition [of iPhone OS to Apple TV] could be relatively feasible,” said guys from MacRumors.

Apple TV handles very well with the local content. But what is missing? Online content. We think: add apps with the ability to stream online content and you kill Boxee Box, Roku’s HD XR, TiVo Premiere.

Then, App Store is the world biggest free games platform. We say: add games (not only free) and — with the accompaniment of some good controller (iPhone?) — you kill Microsoft Xbox 360, Nintendo Wii  and Sony PlayStation 3.

And Blu-ray? Don’t be funny! Apple wants us to BUY content (iTunes, apps), not to PLAY already paid content.

The only thing that is quite surprising — if Engadget is right — is that Apple will not introduce its new addition to our living rooms at the upcoming WWDC. We thought that it is going to happen after MacRumor revealed an e-mail exchange between Bryan Webster and Steve Jobs. “I hope you have some good WWDC announcements to blow [Google] out of the water,” Webster wrote to Jobs on Saturday. “You won’t be disappointed,” the CEO responded.

The mail may be fake. Engadget may be wrong. Anyway, we’re counting down to Steve’s keynote.

It’s been a few days since Apple released its 2.4 software update. Time to sum all the rumours up! But first, let’s take a look at new features that come to our ATV devices:

Remote app directional control: Control your Apple TV with simple finger gestures via the Remote app. This feature requires Remote 1.3 running on an iPhone or iPod touch with iPhone OS 3.0.

Flickr Search: Search Flickr photo tags to find recently updated photos of interest. Save searches to quickly find new photos or use as a screen saver for Apple TV.

New view options: View movies By Genre, By Movie, or Unwatched. View TV Shows and Podcasts By Date, By Show, or Unwatched.

Updated transport and chapter modes:During video playback, click right or left to fast forward or rewind. Additional clicks increase the speed. Click down to show chapter markers.

Updating Apple TV software is more than easy. Check it out here.

Certainly the most important feature is a support for controlling Apple TV from your iPhone or iPod. You can control audio or video playback by flicking left or right to rewind or fast forward. Flick down to show chapter markers when watching video and then flick left or right to skip. You can also tap the screen to play/pause either video or audio.

As TUAW reports, their in-house Apple TV geeks, Megan Lavey and Christina Warren, both installed the updates and gave them a try. “Megan indicated the gestures were quick and responsive, and coupled with the ability to use the iPhone/iPod keyboard to search for shows, the new versions made it much less tedious to navigate through your shows¨.

This video seems to confirm these observations.

The main question for many ATV users was if boxee will be running on the device after updating? Boxee quickly responded to that kind of doubts, tweeting: “if you upgraded your Apple TV to 2.4: run patchstick again, update launcher, download latest boxee and you’ll be back boxeeing” (http://twitter.com/boxee). They also reposted a short tutorial ‘so how do i get boxee on atv?’ on their forum.

On various forums users confirmed the full boxee functionality on ATV.

According to awkwardTV, 2.4 update works fine also with XBMC Media Center 9.04, NitoTV Take 2 0.7.6+ (but isn’t able to install Perian) and LaunchMore. But they also reports some problems:

• Divx (Perian) has no audio when installed like this or by this article “Install_Perian” (it’s maybe related to “fooled” files);
• SoftwareMenu right from atvusb-creator (mac b10) causes Finder to crash, had to ssh and remove frappliance, then downloaded latest version and it is OK now;
• ATVFiles (Version 1.2.0 (479)) crashes when browsing files.

We’ll be following all 2.4 update-connected news and will inform you immediately.