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MyDogHsFleas
Premium
join:2007-08-15
Austin, TX
kudos:5

Cable and broadcast industry won't allow? Really?

The pundits said the same thing about the music industry. Look what happened when Apple brought their business model for iTunes forward.

Also realize the "cable and broadcast industry" isn't monolithic. There are lots of studios and production companies who own their content. Apple can pick them off. They will start with a few deals and the rest will follow, just like how iTunes evolved with their licensing deals.


morbo
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The difference between the music industry and television industry is night and day. The biggest difference being how television is supported by advertising whereas music never was.

I don't see Apple changing the television world in any meaningful way. It's simply too big a business for the incumbents to yield any power or control and share in profit.

MyDogHsFleas
Premium
join:2007-08-15
Austin, TX
kudos:5
said by morbo:

The difference between the music industry and television industry is night and day. The biggest difference being how television is supported by advertising whereas music never was.

Partially true. You have to look at carriers as broadcast vs. basic cable vs. premium services.

Broadcast: ads plus retrans fees.

Basic cable: ads plus carriage fees from the carriers (cable/sat/telco).

Premium cable: subscription fees (the cut they keep after the carriers take their slice).

That said, let me explain why this makes no difference to my point.

I am not talking about the networks, I am talking about the TV content owners/producers. Sometimes these ARE the networks, increasingly often they are not. The content owners get paid by the networks, not by the carriers. So they really don't care how the carriers get their revenue, ads, subscriptions, retrans fees, DVD sales, streaming fees, whatever. The content owners/producers will see Apple as just another network that they can sell to. And if Apple gives them a reasonable deal, they will go for it. Don't confuse the networks with the carriers with the producers/owners.

I don't see Apple changing the television world in any meaningful way. It's simply too big a business for the incumbents to yield any power or control and share in profit.

My whole point is it's not monolithic. Apple can do the same thing they did to the music producers and channels, start with a few, show success, and pick off more and more. Doesn't matter that it's a bigger business than music. Apple is much bigger than it used to be too.


morbo
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I disagree. Time will tell on how this all plays out.

MyDogHsFleas
Premium
join:2007-08-15
Austin, TX
kudos:5
said by morbo:

I disagree. Time will tell on how this all plays out.

Disagree with what exactly? Make a point or we can't have a dialog. Hey I might learn something!

MyDogHsFleas
Premium
join:2007-08-15
Austin, TX
kudos:5
To my point that consumers are willing to pay more for the Apple brand and ecosystem:

»appleinsider.com/articles/12/12/···-premium