AAPL may be planning to modernize the television set, but doing so may take longer than expected. Many people are wondering what AAPL has planned for the Apple TV. Some earlier rumors have suggested that it will resemble an advanced version of the current Apple TV set-top box, and would act similarly to a cable box. Some rumors go as far as to claim that AAPL is building a complete Apple television set. The development of the Apple TV may be in the works, but there have been several rumors suggesting that its release will be delayed. If AAPL was to launch its own live television through a cloud-based cable box, it would have to first reach a deal with the cable companies regarding content rights distribution. This could prove to be a challenging task considering that cable companies may be reluctant to work with AAPL in fear of eventually losing market share. It is doubtful that the well-established TV broadcasting companies want to be competing directly with AAPL since it has dominated practically every market it has entered. Before his passing, Steve Jobs had said that he was not particularly fond of teaming up with regional cable operators. Their lack of reach could create a variety of operational problems. Despite being referred to as a self-proclaimed “hobby”, AAPL continues to display a growing interest in the TV broadcasting market. It will probably be quite some time before AAPL actually cuts a deal with one of the major cable companies. Negotiating a deal will be the major setback for AAPL and likely delay the company’s intentions to offer live TV. Piper Jaffray analyst, Gene Munster, estimates a release for the Apple TV set to be during November of 2013. It may take longer for AAPL if they don’t find a cable company to partner up with soon.
Author: Tyler Sciortino
email: tsciortino@mail.roosevelt.edu