Analysts are beginning to get behind the Apple TV.

In a note to clients released Thursday night, Deutche Bank warned that the Apple TV could cannibalize a slice of the $26 billion DVD player market in the coming years.

The company revealed plans to introduce YouTube support to the device at an event this week. Deutche Bank believes this move will drive success for Apple, in its "hobbyist" company segment.

Yesteday it was revealed that YouTube is re-encoding content into the Apple-preferred H.264 video codec in order that Apple TV can play it.

Deutche Bank analysts predict: "Apple is positioned to introduce a compelling integrated home media infrastructure solution."

“We expect Apple to continue adding video content (TV, movies, etc) to iTunes/Apple TV further increasing its appeal,” the analysts said.