Originally Posted by InteliusQ
This is the future of Apple TV.
Apple will leverage iCloud to stream content to Apple TV, iOS devices, and Mac computers, using the iRadio model; and users will be able to subscribe to individual or bundled "Channel Apps" through iTunes.
the future means that Apple has to license the content from the exclusive distribution rights owner, and create an app for each.
That's the hard part, because unlike music or movies where there are no regional or local monopolies (yes, there are national), TV content is monopolized into regions and localities, made worse by the embedded advertising model the existing delivery system has.
By the time
- local ad revenue (local Cable/broadcast franchise)
- network ad revenue (national network or cable network ads)
- cross-marketing rights (Snapple paying for product placement in American Idol, a Ford Crown Vic Police Interceptor in a Police show)
- Cable franchise payments (that $29.99 a month for extended basic. $2 of that is going to ESPN even if you don't watch any content)
- Premium content payments (You buy a $20/month for HBO… $10 of that is going to HBO, and 5 of that is going to the content provider behind it).
is added up, the 'value' of content via the current model is Millions of dollars per episode (at least for what we care to watch). So, when Apple TV comes in and says, "You want to distribute via ITMS… here is a way you can increase revenue…." The content owner is effectively looking at all those other revenue sources and dependencies on the current model, and trying to figure out how to avoid alienating these cash cows, yet trying to get MORE money per pair of eyeballs out of the Apple TV stream, I don't see how AppleTV will be 'cheaper' for an individual who watch 20 hours of content a week. (my guess, it's going to about $1-3/hour for boring stuff, and $2-5/hour for live sports stuff… oh, and if you watch 30 minutes of the Notre Dame Navy game, that's $5, and 1 hour of Alabama-Auburn… $5, etc etc.
And to stream 1080i… that's gonna cost you a huge amount of CDN and InterPipe costs. I don't see where Apple can make any money in that model…
The only way is when the Aggregators (cable companies, networks) force you into their model, via an App. And that sucks.
I do think the 'happy medium' will be
- a powerful Apple TV hardware box with a cable connector
- a 'Cable/Network App frame work' that any cable/Network company can install
- with an SDK that exposes the current content (for searching)
- can talk to their cable signal (their security within their sandbox)
- the Apple TV 'Spotlight' app being able to search all underlying content
- cloud smarts to map all content by it's metadata
- and determine the 'most effective' way to hand DVR[time shifting] requests
- and a magical interface that Apple provides via an iOS device that allows you to navigate all this rich content
It's the only way the cable companies will play nice, and allow Apple to give the experience they want to give.