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I have been considering buying the new Apple TV. Maybe the biggest reason is for Netflix streaming. However, I do not own a digital TV, and the only output on the Apple TV is HDMI. I could get a box to convert HDMI to analog RCA but the only ones I can find are more expensive than the Apple TV itself.
I could use a new DVD player, so I'm thinking maybe I should get a Blu-ray player, with Netflix streaming capabilities as an alternative.
What do you think? Would it be worth it to buy a converter box? Would it be better for me to invest in a blu-ray player?
As far as I can tell, there are no cheap Digital-to-Analog converter boxes. Not to mention, a lot of these converter boxes may block you anyway because of the movie studios paranoia of people making analog copies of digital movies. So I think your instincts are correct in not getting a converter box.
I don't own an Apple TV nor do I own a Blu-ray player, but my HDTV does have the Netflix app built into it and it is really great. Though you should be warned that Netflix cannot offer everything in its normal rental collection, what they do offer is impressive. Not everything is in HD either, but you're using a regular definition analog TV, so maybe this isn't as important.
Given what you have, your best bet would likely be a Blu-ray player with network connectivity and Netflix support. This Samsung BD-C5500 Blu-ray player looks like it would suit your needs. Aside from Blu-ray and DVD, it supports Netflix, Blockbuster, and looks like it will play movies right off a USB stick or USB hard drive.
Sure, it's not as cheap as the new $99 Apple TV, but it does a whole lot more and it has your analog connectors as well as your digital ones.
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