Apple’s Future Success in the Television Industry Probably Won’t Come From Apple TV
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Apple isn’t the only company offering a product that allows users to turn their TV into a “smart” TV. While the Apple TV is more expensive than other devices, it has advantages including its own app store, Siri, and internal storage. While the Apple TV is a fantastic device, Apple’s future in the television market might not be in hardware. We believe Apple’s future success could come from television services, rather than set top boxes.
Arjun Kharpal from CNBC suggests Apple could have control over the paid TV market by utilizing the potential of powerful hardware and software. He quotes Cyrys Mewawalla, the head of TMT thematic research at CM Research, “TV today is still old fashioned. About 90 percent of it still comes from old-fashioned technologies like cable, satellite and terrestrial TV. And apple like Netflix are doing so well because they have no competitor, they’re just competing with our apps like Amazon and so on.”
It has been long rumored Apple was developing their own television set and providing their own broadcasting content. The company could negotiate with TV networks like NBC and CBS to provide their programing to an Apple TV. HBO and other entertainment providers could follow suit. What would this mean for television as we know it?
First, it would give Apple a chance to gain traction in the entertainment market. The company could provide video content, assist users in finding said content, recording shows, and suggesting what to watch, allowing Apple to compete with companies like Netflix.
Second, adding a video-on-demand service would pose as healthy competition with companies like Netflix. Finally, customers would have a way to watch TV without the need of cable and satellite companies, as long as they have an internet connection.
Kharpal says advertising companies benefit by working with companies operating video streaming devices and services. He quotes Mewawalla saying, “Big tech companies like Apple can see what you are watching. That means if you are Disney and want to place an ad you can go straight to Apple.” Sadly, an Apple television may not be in the cards for now. Kharpal says according to a report by the Wall Street Journal has suggested Apple has quietly put away their plans on making a television.
Okay, so maybe we won’t see a television from the Mac computer maker, but that doesn’t mean the company couldn’t expand what the Apple TV can offer. The small device could still be made to stream broadcast stations or Apple-branded subscription based services. Adding such features could help Apple gain control of the streaming device market, in time.
Do you think Apple would see more success in the services market? Let us know in the comments below.
