Thursday, August 16, 2012

Apple's New Front in Battle for TV

If Apple can do what it in essence did in the music industry by getting streaming video, cable, and DVR movies all together on one device then look out.  The problem is, everyone has seen what Apple has done with the music industry which it has basically taken control of and the cable operators don't want that to happen to them.

Article here via the WSJ
  • The talks illustrate that Apple is seeking a less radical path to expand in television than it has contemplated in the past, namely teaming up with existing service providers rather than licensing content to compete with them directly. 
  • By building a set-top box that could be used with cable operators, Apple would be following a similar playbook that it used to transform the mobile-phone industry: convincing existing service providers to marry their service with Apple's hardware and software. 
  • Cable operators have also been put off in the past by Apple's demand for a 30% cut on certain transactions going through the box, according to a person familiar with the situation. Apple has also discussed wanting to be the exclusive provider of set-top boxes using Internet Protocol technology, the person said. And it wanted the cable operators to service the box.
  • For cable operators, the advantage of a deal with Apple is that it could allow them to reduce the money they spend buying set-top boxes, which are leased to customers for a monthly fee. It could also help them hang on to customers who can watch video through a growing array of Internet alternatives, as both traditional TV and Web video would be available through the same device.

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