Famous for its mobile app design and complete transformation into the phone and music world, Apple has had a TV platform for a few years now.
While there have been rumors of Apple merging with cable companies like Time Warner, nothing has been set in stone. Apple doesn’t seem to be putting in the effort to compete for content deals. Instead, the industry leader is focusing on improving TV-watching by working with existing cable providers, reports an article in the Wall Street Journal.
Cornering The Market On Digital Steaming
Countless companies have tried to make digital streaming and on-demand television as easy as it is to channel surf on cable. Many have come close, but none have yet perfected it.
So, what is the problem with digital streaming? And why hasn’t Apple cracked the TV market?
When it comes to digital streaming, the main issue lies in its solo platform. Netflix, Hulu, HBO Go, and other digital streaming options are all limited to a single app or service. None of these can be cataloged on an entire TV platform.
Right now the market is in prime position for a “smart TV” that can seamlessly unify all of its content into one easy interface.
What’s Keeping Apple From The Market?
Apple has yet to crack the TV market because of the route they are taking. Because of Apple’s complete transformation of the digital world, cable companies are worried about the competition.
Apple is reportedly in negotiation with cable operators for their set-top box. Apple would sell the device to consumers and receive a 30% cut of any movies or apps the customer purchased on the box while cable companies would be in charge of making sure the device worked well. This would include:
• fixing broken boxes
• replacing malfunctioning units
• ensuring the quality of cable service
The main problem lies in the fact that cable companies would be shouldering the brunt of the work as well as losing control to Apple. When Apple essentially took over the world with iTunes, iPhones, and apps, cell phone companies had to completely change their business model in order to make money because Apple’s iPhone controlled app sales, text messages, and even phone calls. Experts believe cable companies’ refusal to join forces with Apple is because they are worried they might be headed for a similar fate.
Since Apple already supports Netflix, Hulu, MLB TV, and other competing cable services on its TV platform, cable companies would have too many rivals directly in their midst. If they keep Apple at bay, and wait for Apple to release its own complete package, cable companies feel they will have more control over the fate of their own companies.
As it stands, Apple has yet to release its own platform, though rumors are circulating over a new updated TV release in April. Knowing Apple, they probably already have a dynamic TV platform in the works.