Apple could be key for big media to monetize the small screen

Posted:
in iPod + iTunes + AppleTV edited January 2014
If traditional media outlets want to begin making more money from "small screen" viewing via devices like iPads, smartphones and notebooks, their best bet may be to align with Apple, one analyst believes.

Ben A. Reitzes with Barclays Capital said in a note to investors on Tuesday that the trend toward so-called "small screen" viewing on portable devices beyond the living room HDTV is providing less advertising revenue to big media companies than traditional "big screen" viewing through cable TV. That issue may force media companies to align with Apple on a new set-top box the company is said to be pursuing.

"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."

Last week, The Wall Street Journal revealed that Apple is working on a new set-top box device with expanded functionality over its current iOS-based Apple TV. Apple's plan for new hardware would reportedly feature an advanced cloud-based digital video recorder that would blur the lines between live content and video available on demand.

Apple's cloud-based DVR capabilities would allow users to access their content stored on off-site servers. That would go well beyond the current Apple TV, which only streams content from iTunes, Hulu and other Internet services, as well as a user's home video library.

Television


But in order to carry out its alleged vision, Apple first needs to reach deals with content providers. Thus far, Apple has yet to secure the appropriate deals with any cable operators, potentially because of a reluctance to grant Apple access into the live TV space.

While cable operators and content owners may currently be reluctant to work out a deal with Apple, Reitzes believes they may eventually be forced to make a deal in attempt to stop the trend of "cord cutting," in which some consumers have opted to ditch cable TV subscriptions entirely.
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Comments

  • Reply 1 of 55
    umrk_labumrk_lab Posts: 550member


    Apple will start to enjoy the benefits of its huge installed base. The revenues driven from immaterial content will explode, pushing the profit margin even further.


     


    An iPad can ALSO be used as a TV. This is in line with the consuming habits of the young generation.

  • Reply 2 of 55
    jwyattjwyatt Posts: 93member


    I've noticed in the last year just how much my wife and kids utilize our imac, ipad and occasionally my iphone to watch movies, tv show's etc. Our HDTV hardly ever comes on and when it does it's constant flipping through endless channels of crap. It's becoming evident to me anyway that HDTV + Cable had better watch out. I've dreamed of canceling my $100+ a month cable bill and it's beginning to look very feasible. Assuming we are a fairly typical family.

  • Reply 3 of 55

    Quote:

    Originally Posted by AppleInsider View Post



    If traditional media outlets want to begin making more money from "small screen" viewing via devices like iPads, smartphones and notebooks, their best bet may be to align with Apple, one analyst believes.

    < snip >

    While cable operators and content owners may currently be reluctant to work out a deal with Apple, Reitzes believes they may eventually be forced to make a deal in attempt to stop the trend of "cord cutting," in which some consumers have opted to ditch cable TV subscriptions entirely.


     


    It's interesting how we can be blind to some trends until someone points them out to us.


     


    In the last three years we've had this accelerating trend to small cable-free iPads, and yet we still think of TV as being that huge thing in the living room. Young adults are much more mobile that us older adults believe and if Apple "cracks" the old entertainment paradigm it may be with a 10" screen and not a 55" screen. 

  • Reply 4 of 55


    Get yourself a usenet account, Sickbeard, SABnzb and a PC to to server all that content up on Plex Media Server. Cut that cord!

  • Reply 5 of 55
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by colding01 View Post

    Get yourself a usenet account, Sickbeard, SABnzb and a PC to to server all that content up on Plex Media Server. Cut that cord!


     


    Live streaming news channels?

  • Reply 6 of 55

    Quote:

    Originally Posted by Tallest Skil View Post


     


    Live streaming news channels?



    CNN News, Fox News, MSNBC, NPR... All channels freely available on Plex. But who want to watch news anyway?

  • Reply 7 of 55
    lkrupplkrupp Posts: 7,470member
    colding01 wrote: »
    Get yourself a usenet account, Sickbeard, SABnzb and a PC to to server all that content up on Plex Media Server. Cut that cord!

    Yeah, right. Technobabble at it's finest.
  • Reply 8 of 55

    Quote:

    Originally Posted by colding01 View Post


    Get yourself a usenet account, Sickbeard, SABnzb and a PC to to server all that content up on Plex Media Server. Cut that cord!



    Formula 1?


    Golf?


    Tennis?

  • Reply 9 of 55
    tallest skiltallest skil Posts: 43,399member


    You see that effing Roku box on the Plex page? I saw two of them at a Best Buy recently. Where the FRICK do they get off, anyway?

  • Reply 10 of 55


    What's wrong with the Roku? I have two of them streaming to the Plex channel.

  • Reply 11 of 55

    Quote:

    Originally Posted by christopher126 View Post


    Formula 1?


    Golf?


    Tennis?



    That's the real downside so far, is the lack of live sporting events. You could get MLB via their app, but that's just about it.

  • Reply 12 of 55

    Quote:

    Originally Posted by lkrupp View Post





    Yeah, right. Technobabble at it's finest.


    Technobabble? Just because you can't grasp the concept?

  • Reply 13 of 55
    mstonemstone Posts: 11,510member

    Quote:

    Originally Posted by colding01 View Post


    Get yourself a usenet account, Sickbeard, SABnzb and a PC to to server all that content up on Plex Media Server. Cut that cord!



     


    How much do you pay for Internet? Who provides it and what speed? I get my Internet from cable. I could switch to U-verse but it is about the same 10 Mb down 3-5 up. I also have a 5 gig per month LTE wifi hotspot account but that certainly isn't going to replace cable.

  • Reply 14 of 55
    jragostajragosta Posts: 10,473member
    <vc><strong>If traditional media outlets want to begin making more money from "small screen" viewing via devices like iPads, smartphones and notebooks, their best bet may be to align with Apple, one analyst believes.</strong>
    Ben A. Reitzes with Barclays Capital said in a note to investors on Tuesday that the trend toward so-called "small screen" viewing on portable devices beyond the living room HDTV is providing less advertising revenue to big media companies than traditional "big screen" viewing through cable TV. That issue may force media companies to align with Apple on a new set-top box the company is <a href="http://www.appleinsider.com/articles/12/08/16/apples_rumored_set_top_box_to_offer_ios_ui_cloud_based_dvr_capabilities.html">said to be</a> pursuing.
    "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.".

    Way to go, Captain Obvious. Apple has something like 90+% of the purchased content on mobile devices. It's about time someone realized that.
  • Reply 15 of 55
    jeffdmjeffdm Posts: 12,949member
    colding01 wrote: »
    Get yourself a usenet account, Sickbeard, SABnzb and a PC to to server all that content up on Plex Media Server. Cut that cord!

    In other words, a digital Rube Goldberg machine.
  • Reply 16 of 55

    Quote:

    Originally Posted by mstone View Post


     


    How much do you pay for Internet? Who provides it and what speed? I get my Internet from cable. I could switch to U-verse but it is about the same 10 Mb down 3-5 up. I also have a 5 gig per month LTE wifi hotspot account but that certainly isn't going to replace cable.



    I have Comcast cable internet service. It's the only cord I cannot cut.

  • Reply 17 of 55

    Quote:

    Originally Posted by JeffDM View Post





    In other words, a digital Rube Goldberg machine.


    No, not really.

  • Reply 18 of 55
    mstonemstone Posts: 11,510member

    Quote:

    Originally Posted by colding01 View Post


    I have Comcast cable internet service. It's the only cord I cannot cut.



    I also have OTA which works pretty well for sports and the HD is fantastic. That only works for local teams though. Since LA teams are always sold out there are no black outs. You also get nework and local news, but I still have cable TV. The picture and audio quality on cable are crap.

  • Reply 19 of 55
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by JeffDM View Post

    In other words, a digital Rube Goldberg machine.


     


    THAT'S the name, dangit! I was trying to use an analogy earlier that involved one, but I couldn't remember the name! I even made one myself as a final in a physics course.


     


    Of course now I can't remember where I was and what I was responding to that involved a Rube Goldberg machine… 


     


    ???? ???????

  • Reply 20 of 55
    auxioauxio Posts: 2,035member

    Quote:

    Originally Posted by colding01 View Post


    Get yourself a usenet account, Sickbeard, SABnzb and a PC to to server all that content up on Plex Media Server. Cut that cord!




     


    I've personally been using a mix of PS3 Media Server, an HD antenna, and NHL Gamecenter for live hockey games, and it's worked well for me.


     


    Does Plex transcode media files on the fly as well as PS3 Media Server does?  I can pretty much stream anything I throw at it to my PS3 without issues, so that's why I'm a bit hesitant to change.  Being able to stream a limited amount of content to my iPad/iPhone isn't as important as being able to watch absolutely anything on my HDTV.
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