Even to this day, Apple calls their Apple TV product/division a "hobby", but I call it anything but a hobby. Not only have they been selling like hotcakes, but there is an amazing amount of potential with the devices. Not just in the home, but in business (see this article: "Apple TV in the Workplace").
Recently, the firm Frost & Sullivan announced the results of market share research in the space of multimedia streaming devices. Here's what it looked like:
Obviously, the Apple TV is on fire, when compared to the competition.
"Apple accounts for the majority of sales by far, despite offering relatively narrow content access – this is not (yet) a market being driven by the value proposition of a streaming TV experience. AppleTV's AirPlay feature was strategically crafted to simplify the process of transferring laptop and tablet displays to a TV screen, and it is AirPlaying – not OTT streaming – that is the primary reason for purchase of AppleTV devices. Roku is the second largest vendor in this space and is driving growth through a strong lineup of content as well as through a series of agreements with Pay TV vendors such as Time Warner Cable. The long-term potential for this segment does remain uncertain. It is important to note that while current growth rates are high, the total installed base of $99 streaming boxes is quite low."
At $99, you'd be silly not to buy one of these incredibly versatile units.