"A full Web browser would significantly enhance any home theatre installation," he added. "The Web is rapidly emerging as the dominant delivery system for video, including television and movies."
By adding a full Web browser to Apple TV, the consumer tech giant would significantly shake up both the home media market and the Internet space. To make a useable browser, though, Apple would have to enable Flash video in the Apple TV browser, according to Gottheil. The company would also need a touchpad remote and wireless keyboard to make a "theatre-size" iPod Touch, he added.
Shares of Apple dipped 18 cents, or 0.10%, to $172.75 in pre-market trading.Apple has not yet responded to a request for comment on this article from TheStreet. Written by James Rogers in New York.