PC Mag:

While Apple could still make a physical TV, I think this move incorporating Hulu and Amazon is very telling of Apple’s future TV strategy. The key here is that for Apple’s current TV device to make money, it needs content. By biting the bullet and offering competing services to iTunes, the value proposition of an Apple TV device rises. Apple can now accelerate its TV plans through areas it excels in, namely software and human interfaces. I believe that it can do all that it wants to do in these areas through an external box that connects to a TV and delivers iTunes and its cloud services.The problem with TVs is that people buy them and hold on to them for five to seven years on average. While Apple could design a TV that could be upgraded in software, it makes more sense to create a sophisticated box that works with all televisions and allows the company to innovate around this model.

Bajarin has been around for a long time and is a smart guy. I’ve been saying the same thing about Apple’s direction with regards to the Apple TV set-top box but The Esteemed Publisher of The Loop still believes Apple will still produce an actual HD television set. Time will tell.