The BMW kit has a little switch box that switches the video feed to the display when you select reverse

The OEM TV tuner provides the following functionality:

Analogue TV reception (useful for eg little wirelesss TV cameras on your trailer)
AV-IN (useful for eg iPod, DVD player, or ATSC digital TV tuner)
AV-OUT (useful for eg driving read headrest monitors)
REV-CAM IN (reverse camera input, useful for... well you know what :-)

Advantage of the TV tuner is that it properly integrates with the nav so that if when watching a movie, the nav needs to display instructions to you, it will automatically switch to the nav video for the duration of the instruction, and then switch back to what it was doing before.

3rd party AV-IN modules don't do that
And I'm not sure if the BMW AV-IN module does that

Great. Now to find a camera that will fit in that trunk handle (not sure if the above replacements will fit nor the E70 X5 camera).

I've seen pictures of a bracket which fits in the NAV compartment that allows a TV Tuner to be fit. If you find the bracket let me know the part number in that I would still like to install the TV tuner I purchased for my X3.

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E83 - Aero PKG Mods installed: Homelink mirror. CIS-IBUS video module, AUX, Rr Dr Release, stock wheels, Remote start, CarPC (Atom) & mud flaps - NAV - MKIV - NA Map DVD - 2011
E46 - 18.5 wheels/tires (summer), 17 stock (winter), Homelink, NAV software upgrade, BMW video module, Radio to V53, AUX, USB IBUS interface,BMW alarm install, CarPC(Epia), remote starter, tank battery & angel eyes. NAV - MKIII - NA Map CD - High Version 2008.1

Part is no. 3 - Bracket Navigation computer/Video module 1 65103405144 $58.48

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People relying on electronics instead of basic driving skills...

If you've got $150 burning a hole in your pocket, go take a driving school. It won't help you backing up at 1-2mph, but it's the best thing you can do for the benefit of yourself and others when you're going forwards at 60mph.

See that little green truck in the picture...never hit another car, pole, curb, stay in my own lane driving down the highway, no problem parking at the mall, etc. Save the money and learn the dimensions of your car.

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The BMW Video module does automatically switch the display on your Navigation screen to the rear camera when shifting into reverse. It also has a couple more video inputs (though they have to be triggered by a momentary switch) which are intended for side and front view camera hook-ups. The X3 has a side-view camera option (at least in Japan) - see ETK. It is purely for video switching - no audio.

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2010 X5 3.5d: SOLD, but miss the torque...
2004 X5 4.4i: SOLD, but served us well

Eml, you've got an E46 M3 haven't you? There is a BMW camera that will fit, but it is a PITA to do. I did it to my E46 M3.

Agree completely, whats the need for a camera in a car! Can understand if it was a massive vehicle like a big lorry or something with no windows but an x5! iv got 5% tint the whole way round, if your reversing slowly then your reverse sensors will beep anyway!

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x5 is gone

It is very handy as the PDC does not give you an accurate reflection on where your bumper is compared to the object behind you. When I back in to my garage I need it to see the car behind me as my car only JUST fits in and I can't get it close enough without touching with the PDC.

It is also very handy for reverse parking, effectively, it pretty much makes PDC redundant. Well worth it IMO.