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While many people are waiting for Apple to drastically revamp the television service business, analysts aren’t predicting that this will happen any time soon.
Apple SVP of Internet Software and Services Eddy Cue indicated that the company is sticking with its mantra of only entering a markets that it will be able to create great customer experiences as well as address key problems, according to a report from Pacific Crest Analyst Andy Hargreaves published today. Cue identified these key problems as poor TV user interfaces and forced bundling of pay TV content.
“Unfortunately for Apple and for consumers, acquiring rights for traditional broadcast and cable network content outside of the current bundled model is virtually impossible because the content is owned by a relatively small group of companies that have little interest in alternative models for their most valuable content,” wrote Hargreaves, who also had discussions with Apple CFO Peter Oppenheimer. “The differences in regional broadcast content and the lack of scale internationally also create significant hurdles that do not seem possible to cross at this point.”
This information echos earlier rumors that Apple was indeed shifting away from building its own television set in favor of transforming its Apple TV set-top box into something that could replace the current cable boxes offered by TV service providers, as VentureBeat previously reported.
Based on Hargreaves’ report, I don’t think Apple is entirely over the idea of taking on the TV industry, but it does seem likely that we’ll be waiting quite a while before anything actually happens.
Apple iTV mockup by Guilherme Schasiepen/Flickr