Apple SVP Cue: no HDTV coming anytime soon | iLounge News

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Apple SVP Cue: no HDTV coming anytime soon

During a meeting with analysts, Apple senior vice president of Internet services and software Eddy Cue indicated that the company won’t be entering the TV market in the near future. “Relative to the television market, Eddy Cue, Apple SVP of Internet Software and Services, reiterated the company’s mantra that it will enter markets where it feels it can create great customer experiences and address key problems. The key problems in the television market are the poor quality of the user interface and the forced bundling of pay TV content, in our view,” writes Pacfic Crest analyst Andy Hargreaves, as recounted by Fortune. “While Apple could almost certainly create a better user interface, Mr. Cue’s commentary suggested that this would be an incomplete solution from Apple’s perspective unless it could deliver content in a way that is different from the current multichannel pay TV model[...] Unfortunately for Apple and for consumers, acquiring rights for traditional broadcast and cable network content outside of the current bundled model is virtually impossible because the content is owned by a relatively small group of companies that have little interest in alternative models for their most valuable content.”

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Comments

1

Unfortunately, without Steve Jobs, I don’t think it could ever be done.  Apple HDTV is gone with Steve.  It would have been great, though.

Posted by Joe on August 24, 2012 at 11:41 AM (PDT)

2

Sorry, but this was obvious.  Don’t know why anybody ever said any different.

As Steve said, there is no go to market strategy for a TV product in the US.

Remember cable card TVs.  They’re all gone.  Why does Sony not produce a TV that works without you having to hook up a STB for your cable or satellite feed?  Same reason Apple can’t make a TV.

No way to make one for cable.  No way to make one for AT&T U-Verse.  Cable cards work but are horribly supported by cable companies and so users have rejected them.

Posted by Glenn on August 24, 2012 at 1:18 PM (PDT)

3

@Glenn - The potential for Apple to produce an HDTV that would be a vast improvement to the current TV/Set-top box offerings. What Apple would be trying to do is not necessarily be groundbreaking in the hardware realm. I believe Apple would try to innovate the delivery. Instead of paying a cable/satellite bill that gives you tons of channels that you do not want…but are still technically paying for, Apple would try to offer a la carte programming where you select the programs that you want and pay a set price per program. You can actually do this to some extent with some shows via iTunes Season Passes. Apples biggest hurdle is getting the networks to buy in. Apple has gotten the music labels on board, the movie side of the studios are coming around and book publishers are in the fold. If Apple can sell the idea that TV studios could appeal to a much larger market by offering this type of service, they could really change the face of television the way they did with music.

The future of television is digital. And Apple has done a great job of taking all of those other entertainment factions and putting them into a single tool for purchase and the market leading consumption devices. A TV would fit right in

Posted by Mitch on August 25, 2012 at 7:43 AM (PDT)

4

Understand completely @Mitch, I just thought it was obvious that Apple would not be successful in making the deals they’d have to make to get an a la carte OTT service going.  HBO for example would lose money selling their service to Apple.  Cable companies would drop them to make a point, the initial Apple TV user base would be small compared to the number of TV subscribers HBO has, etc etc.  It isn’t going to be easy to crack this nut.

Sure IP delivered/digital TV is the future.  Doesn’t mean we’re not going to go through another 10 years before it can really happen.  Before the burden of giant cable bills causes enough cable cutters to change the industry model.  Or something.

In the interim the only way for them to get to market is to pair up with Comcast and Time Warner, or at the very least DirecTV, to create a DVR that can record and play back live TV and do all that without having to disrupt everything.  But then they’d have to get in bed with those guys, and they might find that they weren’t in quite the bargaining position they had with AT&T that allowed them not to compromise the iPhone experience.

Posted by Glenn on August 27, 2012 at 11:23 PM (PDT)

5

@Glenn - Those are all good points. And I agree that this may be a lengthy process. But I also believe that Apple has a good amount of influence here. If you think about it, the TV business is just a division of the “Entertainment” conglomerates. Universal is huge in TV, movies and music. They are already in bed with Apple in two of those three (all three actually, but TV is not included in the way Apple would ultimately prefer). As is Sony, Warner Bros., etc. Amazon and Apple are really two of the only distributors that have the weight to throw around on all three fronts. I guess it is all just conjecture at this point. It may go nowhere. Or it may be Apple’s next big frontier. I honestly hope they make a big push myself. I am tired of the current cable monopolies. I do not want to pay for 500 channels that I never even tune to.

Posted by Mitch on August 28, 2012 at 5:50 PM (PDT)

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