Eddy Cue suggests Apple television unlikely without content deals

Posted:
in iPod + iTunes + AppleTV edited January 2014
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."
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Comments

  • Reply 1 of 87
    jragostajragosta Posts: 10,473member
    <vc><strong>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.</strong>"

    Good. Can we finally put these Apple television rumors to bed?
  • Reply 2 of 87
    rogifanrogifan Posts: 10,669member
    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.
  • Reply 3 of 87
    jragosta wrote: »
    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.
  • Reply 4 of 87
    quadra 610quadra 610 Posts: 6,744member


    Suppress rumours. Misdirect and mislead. 


     


    Then bring it out during a Keynote.


     


    ;)

  • Reply 5 of 87
    dysamoriadysamoria Posts: 2,210member
    Proofread before submitting stories, AI. For crying out loud.
  • Reply 6 of 87


    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. 

  • Reply 7 of 87
    rogifanrogifan Posts: 10,669member
    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.
  • Reply 8 of 87
    bdkennedy1bdkennedy1 Posts: 1,459member


    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.

  • Reply 9 of 87


    Classic Apple-style FUD, I'd say.


     


    It's coming, but not until 2013.

  • Reply 10 of 87
    bdkennedy1bdkennedy1 Posts: 1,459member


    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.


     


    ;)


  • Reply 11 of 87

    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

  • Reply 12 of 87


    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.

  • Reply 13 of 87

    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...

  • Reply 13 of 87

    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.

  • Reply 15 of 87


    Apple reached the evil number!!!


     


    AAPL: 666

  • Reply 16 of 87
    jkichlinejkichline Posts: 1,336member


    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.

  • Reply 17 of 87
    jragostajragosta Posts: 10,473member
    bdkennedy1 wrote: »
    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.
  • Reply 18 of 87


    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? image





    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. 

  • Reply 19 of 87
    charlitunacharlituna Posts: 7,215member
    bdkennedy1 wrote: »
    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.
  • Reply 20 of 87
    charlitunacharlituna Posts: 7,215member
    bdkennedy1 wrote: »
    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.
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