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Eddy Cue suggests Apple television unlikely without content deals

post #1 of 84
Thread Starter 
Eddy Cue, Apple's chief of Internet Software and Services, has suggested to one analyst that his company would be unlikely to build a full-fledged television set unless it could secure necessary deals for content.

Talking with Andy Hargreaves of Pacific Crest, Cue indicated that Apple could create a better television user interface, but that alone would be an "incomplete solution," according to Apple 2.0. Cue's remarks suggested to Hargreaves that Apple wouldn't want to deliver a television set until the company "could deliver content in a way that is different from the current multichannel pay TV model."

"Unfortunately fro 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," Hargreaves wrote.

"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," he added.

Hargreaves' reading of Cue's comments align with recent reports that claimed Apple was in talks with cable providers to potentially build a set-top box that would handle live TV programming. It was said that Apple has yet to reach a deal with any cable operators, potentially because of a reluctance on the part of content providers to allow Apple into the live TV space.

Television


While Apple feels the necessary content agreements would be key for the company to make a bigger push into the living room, some industry watchers feel that Apple would also be the key partner big media companies need if they want to monetize the small screen. This week, analyst Ben A. Reitzes with Barclays Capital said major media companies may be forced to strike a deal with Apple in an effort to monetize content watching from consumers who are moving away from traditional cable TV subscriptions.

"Apple may hold the cards in being the only company that can fully monetize the small screens for big media companies," Reitzes wrote. "The risk of not partnering with Apple is that as young people may 'cut the cord' given the cost of cable that a screen connected to an Apple TV with AirPlay can provide a substantial array of content."
post #2 of 84
Quote:
Originally Posted by AppleInsider View Post

Eddy Cue, Apple's chief of Internet Software and Services, has suggested to one analyst that his company would be unlikely to build a full-fledged television set unless it could secure necessary deals for content."

Good. Can we finally put these Apple television rumors to bed?
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
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post #3 of 84
So basically all this Apple TV talk is just wall street analysts guessing because they're so obsessed with Apple having to revolutionize another market and they assumed it would be TV based on that cryptic comment from Steve.

If these comments are true the I don't even see a set top box in the near future. Maybe adding more apps to the existing ATV but that's all.
post #4 of 84
Quote:
Originally Posted by jragosta View Post

Good. Can we finally put these Apple television rumors to bed?

Nope, that's not how AppleInsider works.
They'll be talking about this until it is true or forever, whichever comes first.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #5 of 84

Suppress rumours. Misdirect and mislead. 

 

Then bring it out during a Keynote.

 

;)

post #6 of 84
Proofread before submitting stories, AI. For crying out loud.
post #7 of 84

I just hope Apple doesn't succumb to the same malady that ails Android, Linux, and nearly every other company: Feature Lust. Or, simply adding a feature just because it's there. Google's doing it with NFC, touting it in promotional material, then leaving the consumer baffled when only one store in the Western hemisphere can accept a Google Wallet payment via NFC. 

 

I think what Steve meant when he "cracked" the code of TV was the interface, and nothing to do with what's shown on said TV. A much different nut to crack. 

post #8 of 84
What exactly is the issue with the user interface again? I have DirecTV and I have no issues with my user interface. It's not confusing and the guide works just fine for me. I can easily search for programs or shows that are on DVR. This whole notion of Apple cracking the user interface (as if it's that bad to begin with) seems like hyperbole to me. What would Apple do that is so revolutionary? Siri? I'm sorry but I don't want or need to talk to my TV.
post #9 of 84

License channels from other countries and force the U.S. cable companies into submission.  There's a lot of content from all over the world.

post #10 of 84

Classic Apple-style FUD, I'd say.

 

It's coming, but not until 2013.

post #11 of 84

That's how they usually do it.  "No we're not making a tablet." Then 6 months later, there it is.

 

 

Quote:

Originally Posted by Quadra 610 View Post

Suppress rumours. Misdirect and mislead. 

 

Then bring it out during a Keynote.

 

;)

post #12 of 84
Quote:
Originally Posted by bdkennedy1 View Post

License channels from other countries and force the U.S. cable companies into submission.  There's a lot of content from all over the world.

+1

post #13 of 84

This all makes sense and underlies the issues with dealing with rumors; I'm pretty sure that reports of apple talking with content providers and cable companies were accurate, but when you get this information whilst negotiations are in progress the whole thing become conjecture and somewhat pointless. Love this site but sometimes it doesn't make sense to print everything that Apple does.

post #14 of 84
Quote:
Originally Posted by AppleInsider View Post

"Unfortunately fro 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," Hargreaves wrote.

 

Perhaps the Justice Department should look into this rather than ebook price fixing...

post #15 of 84
Quote:
Originally Posted by bdkennedy1 View Post

License channels from other countries and force the U.S. cable companies into submission.  There's a lot of content from all over the world.

If it was so easy to do, others would have done it by now. Cross-border laws on this type of thing are a mess.

post #16 of 84

Apple reached the evil number!!!

 

AAPL: 666

post #17 of 84

Why couldn't Apple just do an endgame run around the cable providers and start their own network? They have more cash than the top five media companies combined. It seems like Amazon and Netflix are doing this already and if Apple could create just a few channels of live coverage, I think the cable companies are going to start to sweat that their little kingdoms would crumble.

post #18 of 84
Quote:
Originally Posted by bdkennedy1 View Post

That's how they usually do it.  "No we're not making a tablet." Then 6 months later, there it is.

Really? Please show where Apple said that they weren't making a tablet 6 months before releasing the iPad.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
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post #19 of 84
Originally Posted by jragosta View Post
Good. Can we finally put these Apple television rumors to bed?

 

You realize that this is PROOF they're making a (worthless) HDTV to about half the readership, right? lol.gif


Originally Posted by Suddenly Newton View Post
They'll be talking about this until it is true or forever, whichever comes first.

 

Until the real rumor outlets finally give up on it.

 

You don't hear much about the iPhone nano anymore.


Originally Posted by anantksundaram View Post
If it was so easy to do, others would have done it by now.

 

Because it isn't easy to do, Apple has to be the one to do it. 

post #20 of 84
Quote:
Originally Posted by bdkennedy1 View Post

License channels from other countries and force the U.S. cable companies into submission.  There's a lot of content from all over the world.

Screw channels completely and leverage the iTunes store as the alternative with better quality, pricing, timing etc.

1. Get all seasons of all shows in all three sizes for 99 cents an ep, or 1.99 if someone feels they really must have a premium price. Get season passes and complete my season on all non freshman shows ( those don't generally know how many eps they will have that season)

2. Go immediate and global. All shows are available within 1 week of first OTA in all markets regardless of channel shown or producing studio.. Looking at you Warners and HBO.

3. Get alt audio and subtitles on stuff.

4. Get those home video features on the season passes.

5. Get iTunes extras working on current apple tv and iPad.

6. Convince the studios to add funds to the make good alongside ratings so a buy is a vote, giving casual torrent users (as opposed to diehards that do it simply because they can and will never stop) a reason to buy so they can help fund their fav shows.

Get movies on the same gig with at least rental available within the month after it is out of the theatres and buy in all quality within six months with features, audio, subtitles etc and they will find that the landscape will change. When h265 comes out and they can hit closer to 'real BluRay' without a huge file size markup, that will be another step in the right direction.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #21 of 84
Quote:
Originally Posted by bdkennedy1 View Post

That's how they usually do it.  "No we're not making a tablet." Then 6 months later, there it is.

This time I don't agree. I don't think they intend to make a tv as we know it. The set box and content is the game

Now a revamped display that could be used as a tv, I hope that is coming out by years end because I am in the market. And a 40-46 inch retina quality 120-20 Hz low glare glass Cinema Display with HDMI inputs could fit the bill. Use it with my apple tv, BluRay etc.
Edited by charlituna - 8/24/12 at 9:17am

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

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post #22 of 84

I have been saying this forever. 

I'm not a pessimist. I'm an optimist, with experience.
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I'm not a pessimist. I'm an optimist, with experience.
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post #23 of 84
Quote:
Originally Posted by jkichline View Post

Why couldn't Apple just do an endgame run around the cable providers and start their own network? They have more cash than the top five media companies combined. It seems like Amazon and Netflix are doing this already and if Apple could create just a few channels of live coverage, I think the cable companies are going to start to sweat that their little kingdoms would crumble.
Tim Cook specifically said Apple isn't looking to make much money off content. What channels would Apple create and what content would they put on them? Sorry I just don't see Apple getting into the content creation business.
post #24 of 84
Quote:
Originally Posted by jragosta View Post


Good. Can we finally put these Apple television rumors to bed?

Or is Cue taking a "queue" from Jobs and stating one thing while secretly doing the opposite?

post #25 of 84

The solution to this is easy: "a la carte" bundles.   We already have this is Quebec, Canada.  How it works is you still bundle channels, but instead of theme bundles, you pick up the channels you want. So the bundle are per number of channels. For example, 10$ for 10 channels, 15$ for 20 channels, ...

 

It may not be perfect, but this at least has a chance of making the content providers bend.

 

Another thing they are doing is combine channels and count them as a single choice.  For example, inside a 10 channels bundle, you could have a choice that combines 2 or 3 channels and count as only 1 channel choice. To see what it looks like go to the following link and select QC province.

http://fibetv.bell.ca/en/programming/


Edited by herbapou - 8/24/12 at 9:28am
post #26 of 84
Quote:
Originally Posted by dysamoria View Post

Proofread before submitting stories, AI. For crying out loud.

Dont you mean "fro" crying out loud!?

post #27 of 84

Pardon if this has been said already:

 

To crack this, couldn't Apple simply become a provider, much like Direct TV? Then those who purchase an Apple TV could buy unbundled channels.  I've seen the wholesale fees charged, some of them are .25 per viewer, etc, for the channels with fewer viewers.  Those like ESPN charge Direct TV like $3.99 per viewer if memory serves me right.

 

Seems to me that if Apple wanted to, they could absorb some of those lower costs and allow subscribers to then choose the channels they want to see.  

 

I could be missing something, i'm just spitballing here.

post #28 of 84
Quote:
Originally Posted by Rogifan View Post

What exactly is the issue with the user interface again? I have DirecTV and I have no issues with my user interface. It's not confusing and the guide works just fine for me. I can easily search for programs or shows that are on DVR. This whole notion of Apple cracking the user interface (as if it's that bad to begin with) seems like hyperbole to me. What would Apple do that is so revolutionary? Siri? I'm sorry but I don't want or need to talk to my TV.

I wish i could find the quote, but Jobs mentioned how "broken" the process of operating a Home entertainment center was.  Basically, you have all these components, about 20 remotes, and none of them really talk to each other...not to mention a spaghetti of cables behind the devices.  Universal remotes and HDMI cords only get you so far, mainly because of the learning curve involved with the remotes and a single HDMI is great if you can route them all through a single source.  And No, I don't think Siri is the answer, despite what everyone on these forums seem to think.  I think what Jobs claimed to have "Cracked" was a way to get all these things in sync, either by eliminating some components, or creating innovation that allows for some of these things to converge into a single device/interface.  Think about it.  Most people have a TV, a cable box or now some over-air digital converter, then some will have an optical video disc player, a surround sound system and possibly a smart device like the Slingbox or the ATV.

 

I have all of these things in my system, and i don't think i'm a minority.  For me to watch a movie I have 3 choices: Watch on Netflix or iTunes via ATV, put in a BD or chime into a cable channel.  And that requires at least 3 remotes to accomplish.  I think what Jobs was dissatisfied with that.  Why not have all these operations accomplished by a single device, and/or a single user interface?

post #29 of 84
Quote:
Originally Posted by gwmac View Post

Yes, this would be a great idea if it were possible. But companies like Viacom won't allow you to just but Comedy Central and not also pay for all their other channels you may not want to watch. They sell it as an all or nothing deal. DirecTV, Comcast, Cox, etc..would love to be able to offer a la carte bundles and allow the end customer to only buy the channels they want to watch. It is the media conglomerates like Viacom and others that won't ever allow this to happen. 

 

indeed. But they did go live with this in Quebec and we had the same restrictions here.  One way to go around this is to make small bundles inside the channel choices. It works. Note that Quebec is the only province with that kind of packages.

 

The "a la carte" bundles in Quebec were introduced 10 years ago by Quebec Cable company Videotron. The reason BCE is offering them in Quebec is they know they have zero chances to take away Videotron customers to Fibe IPTV without "a la carte". Its also the reason Quebec is the only province with that kind of bundle in North America.  More than 80% of videotron customers have "a la carte" bundles.


Edited by herbapou - 8/24/12 at 10:08am
post #30 of 84
Quote:
Originally Posted by antkm1 View Post

I wish i could find the quote, but Jobs mentioned how "broken" the process of operating a Home entertainment center was.  Basically, you have all these components, about 20 remotes, and none of them really talk to each other...not to mention a spaghetti of cables behind the devices.  Universal remotes and HDMI cords only get you so far, mainly because of the learning curve involved with the remotes and a single HDMI is great if you can route them all through a single source.  And No, I don't think Siri is the answer, despite what everyone on these forums seem to think.  I think what Jobs claimed to have "Cracked" was a way to get all these things in sync, either by eliminating some components, or creating innovation that allows for some of these things to converge into a single device/interface.  Think about it.  Most people have a TV, a cable box or now some over-air digital converter, then some will have an optical video disc player, a surround sound system and possibly a smart device like the Slingbox or the ATV.

I have all of these things in my system, and i don't think i'm a minority.  For me to watch a movie I have 3 choices: Watch on Netflix or iTunes via ATV, put in a BD or chime into a cable channel.  And that requires at least 3 remotes to accomplish.  I think what Jobs was dissatisfied with that.  Why not have all these operations accomplished by a single device, and/or a single user interface?
If Apple could find a way to get rid of all the cords behind my TV I'd buy whatever they were selling in an instance. But to me that seems like more than UI.
post #31 of 84
Quote:
Originally Posted by johnnyb0731 View Post

 

Perhaps the Justice Department should look into this rather than ebook price fixing...

Oh, I'm pretty positive they know about the Big 5 Media giants that own everything.  Just the same way they knew well enough about how bad the banking industry was in prior to 2008.  Turning a blind eye.

post #32 of 84
Quote:
Originally Posted by GadgetCanada View Post

Apple announces they have purchased eztv.it and are including built-in torrent searching, downloading and streaming with IP blocking in iOS 6.

24 hours later, all content providers agree to work with Apple.

 

24 hours later Apple lost all its VoD content on itunes and are getting sue to the ground.


Edited by herbapou - 8/24/12 at 9:54am
post #33 of 84
Duh! I've been saying this the entire time. No content, and it's DOA......
post #34 of 84
Why don't they make Content Makers Stream their channels to the Apple TV over the internet? Avoiding the Cable Companies. Microsoft did it for their Xbox. It'll feel like an interactive experience... Like in an example here... When a number is shown to vote for a contestant in American Idol, the user would not have to dial a number, rather just select it on the screen, and the vote would be sent to Fox for Results. And Users should be able to set to Save TV shows for later watch all over their iDevices over Wifi with iTunes Sharing and an Apple TV App that has a guide, and volume/ channel controls, as well as Siri on it to tell it to "change to kids shows" or "Show me the weather forecast" and " "Connect with Augustine" (facetime) or " Play My Music" You could use the App to also control a Note reminder system when a user turns on the tv, if another person in the same wifi network leaves a reminder for another person, the reminder is shown on the tv UI for them to see, as well as their iDevices Reminders App, and when they clear it it will dissappear from the Built in Calendar.
post #35 of 84
Quote:
Originally Posted by Rogifan View Post

What exactly is the issue with the user interface again? I have DirecTV and I have no issues with my user interface. It's not confusing and the guide works just fine for me. I can easily search for programs or shows that are on DVR. This whole notion of Apple cracking the user interface (as if it's that bad to begin with) seems like hyperbole to me. What would Apple do that is so revolutionary? Siri? I'm sorry but I don't want or need to talk to my TV.

The new DirecTV UI is better than it's competitors set-top box UIs, but is only good for the conventional "Live TV" business model.  I will admit that DirecTV has done a pretty good job of updating their hardware and software on fairly regular basis, but most Cable TV providers should be absolutely ashamed of themselves.  While charging premium subscription fees, they still use the POS Motorola and Scientific Atlanta set-top boxes that they have been using for the past ten years, and the UI is simply inexcusable.  To add insult to injury, they charge you between $5 and $10 per month for each one your set-top boxes.

 

The truth is that we are now an on-demand society and the lame, expensive Live TV business model is no longer desirable which explains why so many people are "cutting the cord".  Apple is in a prime position to dominate this market.  The Cable TV providers need to wake up and get into the 21st Century before they lose all of their customers.  

 

Apple has already entered the TV market with it's own set-top box solution, and although they refer to it as a hobby, it has been quite successful.  The Apple TV hardware improves with each generation, and it's UI improves with each iOS release.  They regularly add new services and features like the native Hulu Plus App and AirPlay, and it is just a matter of time before they add the App Store.  The Apple TV box is the key to the future, whether or not Apple builds an actual TV display.  

post #36 of 84
Quote:
Originally Posted by AppleInsider View Post

Eddy Cue, Apple's chief of Internet Software and Services, has suggested to one analyst that his company would be unlikely to build a full-fledged television set unless it could secure necessary deals for content. ...

 

This story has already been denied by the original source.  It's not true.  You might want to update the article.  

 

In short, Eddy Cue said nothing of the kind and it was all an "interpretation" based on some other remarks.  

post #37 of 84
Quote:
Originally Posted by Gazoobee View Post

This story has already been denied by the original source.  It's not true.  You might want to update the article.  

In short, Eddy Cue said nothing of the kind and it was all an "interpretation" based on some other remarks.  

ROTFLMAO. I guess it's too much to expect good reporting.

Even so, I think the easiest solution would be for Apple to team with one or more cable companies and replace those humongous Motorola cable boxes with Apple TVs that have been modified to handle cable TV content. Since Apple is able to sell them at retail for $99 at a reasonable profit, I suspect that they could make the price very attractive to the cable companies - as well as offering dramatically better features.

It wouldn't be that hard to modify them to purchase their content directly from the Cable companies rather than going through iTunes so there's no reason the cable companies should reject it out of hand.
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post #38 of 84
And over the internets getting better... Google is launching 1GB/S in Kansas, so in about 10 years everything will be internet based... Phones are already running VOIP, Facetime as well, Why would anyone care about the Cable company.. Let them become the one thing they should be... The internet company. I've never bothered with a home phone or a tv subscription plan anyways.. And I don't watch my content from their cable lines... I stream it from the internet. Apple should do the same.
post #39 of 84
Quote:
Originally Posted by Quadra 610 View Post

Suppress rumours. Misdirect and mislead. 

 

Then bring it out during a Keynote.

 

;)

 

Quote:
Originally Posted by bdkennedy1 View Post

That's how they usually do it.  "No we're not making a tablet." Then 6 months later, there it is.

 

Quote:
Originally Posted by johnnyb0731 View Post

 

Perhaps the Justice Department should look into this rather than ebook price fixing...

 

Quote:
Originally Posted by jkichline View Post

Why couldn't Apple just do an endgame run around the cable providers and start their own network? They have more cash than the top five media companies combined. It seems like Amazon and Netflix are doing this already and if Apple could create just a few channels of live coverage, I think the cable companies are going to start to sweat that their little kingdoms would crumble.

 

Way too Big Headache!!!!

Quote:
Originally Posted by charlituna View Post

When h265 comes out and they can hit closer to 'real BluRay' without a huge file size markup, that will be another step in the right direction.

 

H265 Smaller File Sizes will give more power to iPads, iPhones, Macs etc!!! Time Warner Cable and other ISPs and Cell Carriers won't be able to Charge the Public for Extra Data, because H265 Video Files will be smaller!!!

 

Quote:
Originally Posted by herbapou View Post

The solution to this is easy: "a la carte" bundles.   We already have this is Quebec, Canada.  How it works is you still bundle channels, but instead of theme bundles, you pick up the channels you want. So the bundle are per number of channels. For example, 10$ for 10 channels, 15$ for 20 channels, ...

 

It may not be perfect, but this at least has a chance of making the content providers bend.

 

Another thing they are doing is combine channels and count them as a single choice.  For example, inside a 10 channels bundle, you could have a choice that combines 2 or 3 channels and count as only 1 channel choice. To see what it looks like go to the following link and select QC province.

http://fibetv.bell.ca/en/programming/

I'd love to see Consumers creating their own Bundles, instead being forces to buy a lot of Content that they are no interested in! It's like as if one wants to buy Ice Cream and the store forces one to buy soda and or pencils and crazy glue, so that customers could seal their mouths shut and not complain:)! It's a Rip Off!!! Why is Department Of Justice doing nothing about all that? It's a Collusion!!!!

Go  Apple!!!

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Go  Apple!!!

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post #40 of 84
Quote:
Originally Posted by gwmac View Post

Quote:
Originally Posted by Rogifan View Post

What exactly is the issue with the user interface again? I have DirecTV and I have no issues with my user interface. It's not confusing and the guide works just fine for me. I can easily search for programs or shows that are on DVR. This whole notion of Apple cracking the user interface (as if it's that bad to begin with) seems like hyperbole to me. What would Apple do that is so revolutionary? Siri? I'm sorry but I don't want or need to talk to my TV.

I agree. I have DirecTV with a DVR and find the interface extremely easy to use. Exactly what problem would Apple be looking to fix? Even finding shows for VOD (video on demand) is very straightforward. Just type in a few letters and the show appears and then you can watch a VOD episode. It found Breaking Bad for example just after typing "BRE". 

 

I don't see how a new Apple TV could ever compete with cable or satellite when in comes to live TV broadcasts like sports or news for example. How would it deliver live content without partnering with the dumb pipe companies like cable internet. A new Apple TV that simply adds a fuller iOS experience makes a lot more sense. Then you could control your 65" iPad like TV with a an iPhone, iPod, or iPad as your remote and possibly even another method like the Xbox Kinect or something completely new.  


mp3 players played music just fine before the iPod came along. Phones dialed phone numbers just fine before the iPhone came along.

 

The current state of set top boxes is beyond pathetic. Seriously. They're stuck with interfaces that haven't really evolved in nearly 20 years.

 

To name just one improvement, airplay. The browsing/surfing experience is a whole new paradigm. The existing paradigm doesn't need mere improvement, it needs replacement. Barbaric channel surfing and on-demand lists of videos is far from optimal.

 

But I agree that content licensing is the hold-up. The current hardware is more than capable. It's just that the people who hold the content rights won't license content to anyone else because they're also the distributors to end customers. To license it to apple mean a quicker end to their vertical domination of content creation to end user eyeballs.

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