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Apple TV –– And THEN Some! Apple Has BIG Plans For TV Space

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Apple TV –– And THEN Some! Apple Has BIG Plans For TV Space

Apple may disrupt the television industry without making a telly at all.


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Rumors of a true Apple television set–as opposed to the company’s Apple TV digital media streaming set top box–go all the way back to at least 2009. The main proponent of these rumors have been Apple analyst Gene Munster who, ever year, says an Apple television set will debut “this year”.  

Of course this hasn’t happened yet, to the disappointment of Munster and all the Apple super fans out there who want to see the company turn their boring television sets into the entertainment center of the future–whatever that may be. But there are a number of factors going against Apple making a television set, and if the latest rumors–which seem more logical than the rest–are any indication, Apple may be getting ready to change the television industry but not our tellies at all.

What is the latest rumor?

Television industry executives have revealed to re/code that Apple is in active discussions with TV programmers about its own Web TV service:

“The theory is that Apple would put together bundles of programming — but not the entire TV lineup that pay-TV providers generally offer — and sell it directly to consumers, over the Web. That means Apple wouldn’t be reinventing the way TV works today, but offering its own version of it, with its own interface and user experience.”

Under this plan Apple would deliver content to devices–probably iTunes on Mac and PCs, iPhones, iPads, and Apple TVs–via the Internet.

How is this different than previous rumors?

Apple’s previous television initiatives reportedly involved striking deals with cable providers–the companies that own the pipes that get the shows TV programmers make to your television set. But the cable providers were leery about allowing Apple to use their infrastructure and business model, fearing the company could upend their business just like Apple’s iTunes Store did to the music industry in 2003.

Under this new plan Apple would be able to skip the cable providers entirely and make content deals with just the TV programmers themselves. And by delivering the content over the Internet instead of the cable providers’ infrastructure, Apple eliminates one link in the chain.

So what would this version of Apple’s television product look like?

You’re already familiar with the hardware: it’s your Mac or PC, iPhone and iPad, and Apple TV. As for the software interface it would probably be something based on the UI of the Apple TV–only much more advanced, possibly with built-in Siri voice search.

So if this goes through it means no Apple television set?

Well, that’s a big “IF” for now, but yes, if Apple goes down this route it’s likely not going to make television hardware.

Why not?

Because creating a new line of hardware is expensive and requires a lot of expertise Apple doesn’t necessarily have. Sure, Apple has the cash on hand; if it wanted to it could build its own television factories, but that wouldn’t make up for experience. There are plenty of experts already that make great television sets and it’s not clear Apple could do it better than them.

Additionally, televisions are moving closer to a commodity. People are used to paying below £500 for a great set with a large screen. Because there are so many television manufacturers providing high-quality, low-cost sets the profit margins on televisions are generally very low. And we all know Apple likes selling its products for around 40% margins. To do that the price of an Apple television would need to be about 2-3 times higher than equivalent TVs. And if Apple can’t radically innovate the hardware on a television set (and there’s no signs they can), why would people pay 3x the price they’re paying now?

That’s also to say nothing of the television buying habits of people. People usually buy a new smartphone about every two years. They buy a new computer about every three to four. But televisions–people usually buy a new television set every 6-9 years. That’s not a great value proposition to Apple.

You say Apple has explored content-only television services in the past. What makes this Web TV offering any more likely to happen?

Mainly there’s now a precedent for it. Dish Networks in the US is currently offering a similar service with its Sling TV product. And Sony is about to get into the internet TV game with its own version of Web TV. As re/code points out “now there’s a model for this stuff”, which could make the TV programmers feel safer that Apple wouldn’t be the only player in town. It would give them more leverage over negotiations and content deals.

So when’s this happening and how much will it cost?

“No one knows” is the answer to both those questions. IF it happens it probably wouldn’t be until 2016. Apple has its hands full this year with the Apple Watch and it’s unlikely they’ll want to launch two new major product initiatives in the same year. That’s to say nothing of the fact that re/code says “talks seem to be in the early stages” and “several programmers say they’ve yet to start talks with Apple at all.”

As for price…it would most likely me a monthly subscription or Pay As You Go fee. Sling TV’s monthly cost is $20USD; Apple’s could be similar.


Michael Grothaus

13:45, 9 Feb 2015

Apple would possibly disrupt the tv business with out creating a television tube in any respect.

News

Rumors of a real Apple tv set--versus the corporate’s Apple TV virtual media streaming set most sensible field--move all of the as far back as no less than 2009. The primary proponent of those rumors were Apple analyst Gene Munster who, ever yr, says an Apple tv set will debut “this yr”.  

Of direction this hasn’t came about but, to the disgruntlement of Munster and all of the Apple tremendous lovers in the market who need to see the corporate flip their dull tv units into the leisure middle of the longer term--no matter what that can be. But there are a variety of things going towards Apple creating a tv set, and if the recent rumors--which appear extra logical than the remaining--are any indication, Apple could also be on the brink of amendment the tv business however now not our tellies in any respect.

What is the recent rumor?

Television business executives have revealed to re/code that Apple is in lively discussions with TV programmers approximately its personal Web TV carrier:

“The concept is that Apple may placed in combination bundles of programming — however now not all of the TV lineup that pay-TV suppliers typically be offering — and promote it instantly to shoppers, over the Web. That way Apple wouldn’t be reinventing the best way TV works nowadays, however providing its personal model of it, with its personal interface and consumer revel in.”

Under this plan Apple might ship content material to units--almost certainly iTunes on Mac and PCs, iPhones, iPads, and Apple TVs--by means of the Internet.

How is that this other than earlier rumors?

Apple’s earlier tv projects reportedly concerned hanging offers with cable suppliers--the corporations that personal the pipes that get the presentations TV programmers make on your tv set. But the cable suppliers have been leery approximately permitting Apple to make use of their infrastructure and industry style, fearing the corporate may just upend their industry identical to Apple’s iTunes Store did to the track business in 2003.

Under this new plan Apple may be capable of skip the cable suppliers totally and make content material offers with simply the TV programmers themselves. And through turning in the content material over the Internet as an alternative of the cable suppliers’ infrastructure, Apple gets rid of one hyperlink within the chain.

So what may this model of Apple’s tv product appear to be?

You’re already acquainted with the hardware: it’s your Mac or PC, iPhone and iPad, and Apple TV. As for the tool interface it will more than likely be one thing in line with the UI of the Apple TV--best a lot more complex, most likely with integrated Siri voice seek.

So if this is going thru it method no Apple tv set?

Well, that’s a large “IF” for now, however sure, if Apple is going down this direction it’s most probably now not going to make tv hardware.

Why now not?

Because developing a brand new line of hardware is pricey and calls for a large number of experience Apple doesn’t essentially have. Sure, Apple has the money to be had; if it sought after to it might construct its personal tv factories, however that wouldn’t make up for revel in. There are numerous mavens already that make nice tv units and it’s now not transparent Apple may just do it higher than them.

Additionally, televisions are shifting nearer to a commodity. People are used to paying under £500 for a super set with a big monitor. Because there are such a large amount of tv producers offering top of the range, low-value units the benefit margins on televisions are usually very low. And everyone knows Apple likes promoting its merchandise for round 40% margins. To do this the cost of an Apple tv might want to be approximately 2-3 occasions upper than similar TVs. And if Apple can’t notably innovate the hardware on a tv set (and there’s no indicators they may be able to), why might folks pay 3x the cost they’re paying now?

That’s additionally to mention not anything of the tv shopping for behavior of folks. People on a regular basis purchase a brand new smartphone approximately each and every years. They purchase a brand new pc approximately each and every 3 to 4. But televisions--other folks on a regular basis purchase a brand new tv set each and every 6-9 years. That’s now not a super worth proposition to Apple.

You say Apple has explored content material-most effective tv products and services up to now. What makes this Web TV providing any longer more likely to occur?

Mainly there’s now a precedent for it. Dish Networks in america is lately providing a equivalent carrier with its Sling TV product. And Sony is set to get into the web TV recreation with its personal model of Web TV. As re/code issues out “now there’s a type for these items”, which might make the TV programmers really feel more secure that Apple wouldn’t be the one participant on the town. It may provide them extra leverage over negotiations and content material offers.

So while’s this taking place and what kind of will it value?

“No one is aware of” is the solution to each the ones questions. IF it occurs it almost certainly wouldn’t be till 2016. Apple has its palms complete this yr with the Apple Watch and it is not likely they’ll need to release new best product projects in the similar yr. That’s to mention not anything of the truth that re/code says “talks appear to be within the early degrees” and “a couple of programmers say they’ve but to start out talks with Apple in any respect.”

As for worth...it will in all probability me a per thirty days subscription or Pay As You Go price. Sling TV’s per thirty days value is $20USD; Apple’s may well be equivalent.

Michael Grothaus 13:45, 9 Feb 2015
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