"Apple TV can, in our opinion, be easily turned into a DVR with little or no hardware modification and a software upgrade," he wrote. "We think Apple's brand, established distribution, marketing power, over 100 million total iPod unit shipments, and 22 million active Mac users would create more than enough energy to propel an AppleTV TiVo-like service to a higher subscription base than TiVo's current 4.4 million users."
"Whereas Netflix brought 'Blockbuster' to your mailbox, we believe AppleTV will bring Hollywood to your living room," he told clients. "Moreover, we think this device is well-positioned to quickly overtake Netflix as broadband Internet access becomes more ubiquitous and the Internet becomes the de-facto channel for content delivery."
Source: AppleInsider