Saturday, October 8, 2011

Is Apple Planning to Dominate The TV World?

The rumor that Apple would be taking on the cable & satellite TV market is almost as old as the rumor that Apple might release an iPod with a phone in it. As with most Apple unveilings, they are usually preceded by a huge surge in rumors and leaks. Are we seeing that surge today?

While Apple was one of the first to offer downloadable movie and TV content from multiple studios, it has always been at a fairly steep cost and did not compete head-on with the streaming providers like Netflix and Hulu. Apple has recently only been entering markets where they believe they can grab a large market share on day one, so it’s likely that if they entered the streaming media market, they would enter it in a big way. But, what does Apple need in order to do that?

1. A streaming interface and web portal accessible from all of Apple’s devices

2. A massive amount of storage and bandwidth

3. The ability to get video content onto traditional viewing devices (HDTV’s)

4. A subscription price point (or price levels) acceptable to consumers

5. Seamless transition between devices

So how is Apple progressing towards these goals?

Streaming Web Portal

Apple bought streaming music service LaLa.com in December of 2009, then shut it down at the end of April 2010 with no real explanation given. It is very possible that it was shut down so the former company’s engineers could go to work on merging LaLa’s streaming services with iTunes.

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