In the last decade, Apple completely changed the music and wireless scene over the last decade. I think the next logical move is cable boxes. There are rumors flying around that the tech firm is negotiating with cable companies to include live television across a possible Apple TV device. In fact, the Wall Street Journal reported on Apple's attempt to get cable companies to agree to a Apple-designed set-top box.
The device would be sold directly to consumers by apple, who would in turn get 30% off of movies and/or apps that are purchased. The cable company would obviously be in charge viability and maintenance. This is usually known as 'dumb pipe' - the cable companies will do all the dirty work but get no say on what is showing (Remind you of certain other Apple products involving music and phones...?).
There has been a decade of decline in overall music industry revenue, thanks to the loss of control over how much music is sold to consumers. iPhone has insured wireless companies cannot make much revenue on app messages and even on regular phone functions like texting. I believe they had to change their business model to make money.
Let's not forget, if cable companies do agree to Apple's terms, they also welcome the rivalry of other Apple supported services like Netflix and Hulu. At the moment, the cable companies seem secure. But knowing Apple, they will probably try to make the next-gen cable box, which could potentially make television a commodity. First providers would enjoy the advantages, but this would be gone once all competitors start using the box. Now comes the price wars.
But lets look at the consumers point of view. They want something simple and elegant, not the currently difficult set-up boxes and testy relationships with their providers. In the US, cable companies are ranked as worse in customer satisfaction.
It's almost inevitable that Apple will enter the market. Cable companies may frown as much as they want, but in the age where people are slowing turning away towards online streaming, Apple just may be what they need.
The device would be sold directly to consumers by apple, who would in turn get 30% off of movies and/or apps that are purchased. The cable company would obviously be in charge viability and maintenance. This is usually known as 'dumb pipe' - the cable companies will do all the dirty work but get no say on what is showing (Remind you of certain other Apple products involving music and phones...?).
There has been a decade of decline in overall music industry revenue, thanks to the loss of control over how much music is sold to consumers. iPhone has insured wireless companies cannot make much revenue on app messages and even on regular phone functions like texting. I believe they had to change their business model to make money.
Let's not forget, if cable companies do agree to Apple's terms, they also welcome the rivalry of other Apple supported services like Netflix and Hulu. At the moment, the cable companies seem secure. But knowing Apple, they will probably try to make the next-gen cable box, which could potentially make television a commodity. First providers would enjoy the advantages, but this would be gone once all competitors start using the box. Now comes the price wars.
But lets look at the consumers point of view. They want something simple and elegant, not the currently difficult set-up boxes and testy relationships with their providers. In the US, cable companies are ranked as worse in customer satisfaction.
It's almost inevitable that Apple will enter the market. Cable companies may frown as much as they want, but in the age where people are slowing turning away towards online streaming, Apple just may be what they need.
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