Apple was an early player in the mobile market, which allowed it to blend things, but there are too many players offering Internet-connected TV sets and services, analysts said.

In addition to providing hardware and content, Apple will also need to make it easier for customers to understand what the service does, said Stephen Baker, vice president of industry analysis at the NPD Group. There are too many moving parts a customer needs to understand in order to use the current Apple TV device and surrounding services.

It will depend on Apple if it wants to bring simplicity with an all-in-one purchase, Baker said. Nevertheless, the segment is growing and the time is ripe for Apple to exploit it.

"Given the fact they've been unsuccessful, it's a product segment that it is poised to explode," Baker said.