That's why I have a feeling they're gonna make a major play to revamp the entire business model behind television. That play will have them competing with cable providers for distribution rights and if it provides value to consumers, they'll win.
I don't see Apple's competitors really being the cable providers. Sure, power needs to be wrestled away from cable providers for Apple to try and get the exclusive content deals I think it needs but, IMO, Apple's real competitors are companies like Amazon, Hulu, Netflix, YouTube, HBO, Starz, MS, Sony, Nintendo and any company that makes internet-ready TVs and Blu-ray players.
All the companies I listed by name are players in the 'new media' content distribution business. MS, Sony & Nintendo are also challengers on the hardware front and a report I read last year had video game consoles as the #1 way people were streaming movies/TV shows to their TVs. When
TV was new it offered a simple way to get streaming content to your TV but now that functionality is readily available in a number of devices (including the TV itself).
All media though, and all business models changing because of the internet. Music, books, movies, video games all have changed because there are now cheaper and easier ways to get content to consumers. I really believe this a pattern and TV is no different.
I think TV is different though because the traditional distribution model for TV is different than it is for books or music. For a very long time books and music were purchased at retail stores but it really wasn't until DVDs took off that retail sales accounted for much of anything in the film and TV distribution models. Before that it had pretty much been see the movie at the theater and tune in Tuesdays at 9 to catch the next episode.
Amazon selling an eBook is not really that different than Walmart selling a physical book. Music distribution received a tweak of being able to buy any individual song you want (almost) as opposed to buying certain 'singles' or the whole album but the retail process of buying from Apple vs buying from a brick and mortar store isn't that different.
TV & film distribution though is totally getting turned on its head. Release windows for films are collapsing and will probably disappear entirely eventually. The day the movie opens in theaters you'll also be able to buy it or rent it. Have to tune in at Monday at 9 to catch the most recent episode of your favorite TV show? Not anymore. Video-on-demand anytime, anywhere. I think Netflix even released all the episodes for its new show Lillyhammer all at once.
Also, there's value in distribution companies owning their own IP but until their original content becomes the primary reason for paying for their services, that value doesn't mean a lot.
Yeah, but the companies that do have valuable IP (either 1st party or 3rd party) are going to be in the drivers seat and the reason quality 1st party IP can be more valuable than quality 3rd parity IP is because the 1st party IP can't be taken away from you. Building a catalog of course takes time which is why Netflix, Hulu, and YT (even Amazon is rumored to be developing its own original content) will be playing catch up to HBO in that regard. Just like HBO is playing catch to being a content distributor in the vein of Netflix. If HBO GO, for example, eventually lets HBO interface directly with customers (no cable service needed) why would HBO want to strike an exclusivity deal with Apple, for example, when that would just limit HBO's potential audience?
The entire business model is already changing and I wonder if Apple is just going to hang out on the sidelines and see how things start shaking about before they remove
TV from hobby status.
Lethal