Engineers at Apple Inc.
(NASDAQ:AAPL) have been slogging since 2005 to reinvent the experience of TV
viewing. Designing the gadget may seem easy as compared to convincing media and
cable companies to relax their grip on the television industry.
This rivalry is no
match to Apple’s past ventures into mobile phone and music spheres when the
manufacturers of iPhones and iPods had entered into negotiations with destabilized
record labels and a broken wireless industry. Now, the risks are higher and the
competition is tougher.
Apple is contending the
likes of Microsoft, Amazon and Google to make TVs the digital heart of people’s
everyday lives in an industry that is expected to reach $200 billion globally
by 2017. Anyone, who wins, must strike deals with cable providers and media
companies that have enough incentives to yield valuable revenue streams. As
analysts had previously predicted, Apple would not be releasing a new TV this
years.
As per an analyst at
Sanford C Bernstein & Co., Craig Mofett, Apple would need to come with very
strong grounds to turn the cable industry upside down. The very idea that Apple
could take off the curtains from its TV system ignores the business realities
that make the industry a complicated place.
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In latest negotiations,
the main obstacles with cable companies have taken into account a brawl for
control over the software that decides the screen interface, the feel and look
of the viewer’s experience. TiVo is offering the same thing for over a decade
with it’s a hard drive equipped set top box that lets users to record
broadcasts and stream internet fare.
Apple, based in
California, and cable providers have thought about whether a new Apple TV set
top box must be sold directly to customers or be leased through cable
providers.
Apple’s television
efforts have been restricted to $99 Apple TV that is a small box streaming
shows, movies and other contents on the Web. It doesn’t deliver recorded shows
or live broadcasts, unlike set-top boxes from cable providers.
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