Greg's Bite: Apple Frightens the TV Industry
TweetFollow Us on Twitter

Greg's Bite: Apple Frightens the TV Industry

Posted by Greg Mills

The tech rumor mill is in overdrive right now over the prospects of Apple revolutionizing another major industry: television. The television manufacturers, according to reports, is in full panic mode not knowing what Apple is going to do their market share.

Razor thin margins are the norm, so losing market share without being able to quickly pare down expenses could be disastrous. Not knowing what magic Apple will do leaves them very worried. The 3D and internet connected TV never really pushed sales and these days, 55 inches and up displays are not that big a deal .... so what does Sony or the other TV hardware companies do?

The TV "software" business is so fragmented it is bewildering to both consumers and the industry as well. NetFlix and other internet downloaded video content providers struggle to keep up with innovation and they all know Apple, at least, has its feet wet in that industry. What revolutionary digital video content download plan does Apple have up its sleeve?

Steve Jobs will go down in history as the innovator that up-ended the status quo of numerous industries that had settled for mediocrity and failed to innovate. Never suffering fools, Steve knew that the industries to go after had a number of characteristics that made them vulnerable to Apple elbowing its way in. Also, we can gather from the experience of previous industrial revolutions that Steve Jobs led what is different about the TV industry.

1. There is enough money in the target industry to be worth Apple getting into the business.
2. It is somehow related to the synergy of Apple, electronics or Internet related.
3. The industry is complacent and has not innovated or been able to reinvented itself.
4. The legendary Apple user friendliness and a fresh, innovative device of some sort (iPod for example) are perfected at Apple.
5. On the down side, hopelessly fragmented markets are a problem that is hard to fix.

Examples of this are:

The Music industry had become such a cookie cutter process of creating physical media and marketing that music in a set way, through established wholesalers and retailers. As storing music on computers became popular, the piracy rate suddenly became the elephant in the room. The copyright police began to punish the very few users who got caught downloading music and applied amazingly harsh fines. The publicity over massive fines for online music theft was still not enough to kill the growing music piracy problem.

Music sharing web sites were also attacked legally and finally shut down as others popped up. Once people got used to stealing or "sharing" music over the Internet, sales of music in media form at the local record shops of the world dropped off to unsustainable levels. Steve Jobs offered the music companies a cash flow that was less than the industry wanted, but more than they were getting at the time.

This marketing plan leveraged the iTunes Store with on-line payment and a very cool new MP3 player, the iPod. The iTunes Store and iPod changed music distribution and created what Steve Jobs called a new "go to market" plan that worked, made the industry money and Apple got a cut for every song they sold in addition to selling millions of iPods.

Digital publishing has begun to convert the dead tree book stores as people become used to buying books o- line and reading them in digital format. Magazines and newspapers have had limited success, due to greedy publishers who want to pocket the savings of going digital instead of passing it on to consumers. When the price for digital books and magazines settles down to fully reflect the savings of digital distribution, the revolution in publishing will have taken place. We already see the great books stores closing stores around the country.

Famously, the Daily newspaper launched for iPad users hasn't taken off very well. Murdoch can afford to continue to support the Daily for a while, but no matter how well funded, a basic law of economics has to be realized. There is a perception of market value that causes consumers to either anti up or refuse to buy something that seems too high. Market perception of a deal is critical for swift changes in an industry.

Ironically, the concept of digital publishing has allowed people to publish manuscripts and sell their books without going to the publishers, who used to have the power of an industrial god to make or break writers. Now, one can simply write a book in Apple Pages, export to ePub format and then upload the resulting file to Apple's servers and the act of digital publishing has been accomplished. The book is then sold by Apple with a 30% cut for them and 70% for the author.

I will divide the TV industry into to two major divisions for this analysis, TV hardware and TV software.

All of this relates to the industry of television, in that there is plenty of money to make it profitable for Apple to innovate. Actually, TV has a number of facets that are within the synergy of Apple, the industry isn't very innovative despite strong marketing for incremental improvements in TV sets. We will see what killer new hardware Apple brings to market.

The problem is likely to be content providers sometimes won't play ball. Steve Jobs isn't there to twist arms and it remains to be seen if anybody at Apple can play the GodFather as well as he did. The software or content is certain to be delivered via the Internet and likely will use the new server farm Apple built. The problem they will have to overcome to compete with the cable and satellite TV companies is the fragmentation of channels and copyrighted content that will have to be provided to make any delivery system competitive. Fox, for example, has had knockdown, drag-out fights with cable providers demanding unreasonable fees for content.

The rumor is that Apple is going to revolutionize the hardware of TV sets but without content, no hardware magic will matter. Steve Jobs didn't indicate anything more specific than he abhorred the spaghetti tangle of wires that plug into a generic TV set. He also hated the complication of the plurality of remotes we all have for all the various boxes that deliver digital content to our screens. Apple TV for example has an HDVI out port and operates with a one button remote.

His point is well taken, as our big screen Visio has a remote for the TV, a remote for the Dish Satellite box, a remote for the Blu-Ray player, a remote for the Apple Sound System, a remote for the PlayStation 3 and a remote for the Apple TV device. We have to rely upon our 12 year old daughter to keep it all working. I joke but she knows shortcuts using remotes that I never bothered to learn. All of this reminds me of my elderly parents who needed me to change channels since they could never quite grasp the concept of the cable remote, which required you to first address the device you wanted to change, such as TV, VCR or cable box.

I can appreciate the potential of Apple upgrading the existing Apple TV device and perhaps adding Siri to streamline the control of television. I have a hard time seeing how Apple could really revolutionize the screen portion of the TV enough to convert it from being a commodity item to being an Apple magical product, able to generate Apple sized margins. Apple has a history of making monkey out of tech writers, so lets see what comes out this spring, according to some researchers.

That is Greg's Bite

 
AAPL
$101.79
Apple Inc.
+0.21
MSFT
$46.68
Microsoft Corpora
+0.16
GOOG
$589.27
Google Inc.
+4.50

MacTech Search:
Community Search:

Software Updates via MacUpdate

iMazing 1.0 - Complete iOS device manage...
iMazing (formerly DiskAid) is the ultimate iOS device manager with capabilities far beyond what iTunes offers. With iMazing and your iOS device (iPhone, iPad, or iPod), you can: Copy music to and... Read more
Xcode 6.0.1 - Integrated development env...
Apple Xcode is Apple Computer's integrated development environment (IDE) for OS X. The full Xcode package is free to ADC members and includes all the tools you need to create, debug, and optimize... Read more
Apple Safari 7.1 - Apple's Web brow...
Apple Safari in OS X Mavericks brings you all-new ways to find and enjoy the best of the web. It works with iCloud to give you a seamless browsing experience across all your devices. It looks out for... Read more
Delivery Status 6.1.2 - Check delivery s...
Delivery Status displays delivery status of packages for a variety of shipment services. Can't wait for your packages to arrive? Don't waste your time checking the site constantly, just open this all... Read more
Mavericks Cache Cleaner 8.0.9 - Clear ca...
Mavericks Cache Cleaner is an award-winning general purpose tool for OS X. MCC makes system maintenance simple with an easy point-and-click interface to many OS X functions. Novice and expert users... Read more
OneNote 15.2.2 - Free digital notebook f...
OneNote is your very own digital notebook. With OneNote, you can capture that flash of genius, that moment of inspiration, or that list of errands that's too important to forget. Whether you're at... Read more
Apple Configurator 1.6 - Configure and d...
Apple Configurator makes it easy for anyone to mass configure and deploy iPhone, iPad, and iPod touch in a school, business, or institution. Three simple workflows let you prepare new iOS devices... Read more
SpamSieve 2.9.16 - Robust spam filter fo...
SpamSieve is a robust spam filter for major email clients that uses powerful Bayesian spam filtering. SpamSieve understands what your spam looks like in order to block it all, but also learns what... Read more
OS X Server 3.2.1 - For OS X 10.9.5 Mave...
OS X Server is the next generation of Apple's award winning server software. Designed for OS X and iOS devices, OS X Server makes it easy to share files, schedule meetings, synchronize contacts, host... Read more
Apple Security Update 2014-004 - For OS...
Apple Security Update is recommended for all users and improves the security of Mac OS X. For information on the security content of this update, please visit this website: http://support.apple.com/... Read more

Latest Forum Discussions

See All

Down Among the Dead Men (Games)
Down Among the Dead Men 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Avast! Take to the high seas in a fully interactive piratical tale of broadsides and buccaneers. From author Dave... | Read more »
Sling Adds Chromecast Support Through Sl...
Sling Adds Chromecast Support Through Slingplaye​r Mobile Apps Posted by Jessica Fisher on September 18th, 2014 [ permalink ] | Read more »
How to Completely Delete Your iPhone’s C...
The iPhone 6 is out tomorrow, and plenty of people are excited about it. So much so that they’re planning to – or already have – traded in their old iPhone to go towards it. The thing about trading in hardware is it’s very important to make sure... | Read more »
Dragon Quest I Review
Dragon Quest I Review By Andrew Fisher on September 18th, 2014 Our Rating: :: THINE QUEST AWAITETHUniversal App - Designed for iPhone and iPad Its historical significance aside, Dragon Quest 1 is a fun, campy, difficult, thoroughly... | Read more »
It Came From Canada: Overkill 3
Overkill 3 is like every trope of big modern gaming rolled into one. It’s a sequel to an action-packed military shooter. It’s flashy and scripted and flaunts its sophisticated graphics. And it’s a mobile game with a heavy emphasis on in-app... | Read more »
New Modes and Leader Boards in Update fo...
New Modes and Leader Boards in Update for Rules! Posted by Jessica Fisher on September 18th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
TwistedRun Review
TwistedRun Review By Rob Thomas on September 18th, 2014 Our Rating: :: DON'T TWIST YOUR ANKLE!Universal App - Designed for iPhone and iPad TwistedRun is kind of like running up a giant curly fry into the sky. Or maybe that was just... | Read more »
Scope Review
Scope Review By Jennifer Allen on September 18th, 2014 Our Rating: :: LOCATION AWAREiPhone App - Designed for the iPhone, compatible with the iPad Want to easily find photos from around the world based on their location? Scope is a... | Read more »
HipstaFox Review
HipstaFox Review By Jordan Minor on September 18th, 2014 Our Rating: :: FANTASTIC MR. FOXUniversal App - Designed for iPhone and iPad HipstaFox is a great single that makes players long for the whole album.   | Read more »
Ninja Raft (Games)
Ninja Raft 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: ** Special Launch Price ** "Ninja Raft is definitely the game to play if you’re into Tower Defense games and want to play something... | Read more »

Price Scanner via MacPrices.net

Save up to $300 on the price of a new Mac wit...
Purchase a new Mac or iPad at The Apple Store for Education and take up to $300 off MSRP. All teachers, students, and staff of any educational institution qualify for the discount. Shipping is free,... Read more
13-inch 2.8GHz Retina MacBook Pro available f...
B&H Photo has the new 2014 13″ 2.8GHz Retina MacBook Pro on sale for $1699.99 including free shipping plus NY sales tax only. They’ll also include free copies of Parallels Desktop and LoJack for... Read more
16GB iPad Air on sale for $449, save $50
Walmart has the 16GB iPad Air WiFi on sale for $449 on their online store for a limited time. Choose free home shipping or free local store pickup. Their price represents a $50 savings over standard... Read more
13-inch 256GB MacBook Air on sale for $1099,...
B&H Photo has the 2014 13″ 1.4GHz 256GB MacBook Air on sale for $1099.99. Shipping is free, and B&H charges NY sales tax only. Their price is $100 off MSRP. Read more
Toshiba Introduces TransMemory ID High-Speed...
Toshiba’s Digital Products Division (DPD), a division of Toshiba America Information Systems, Inc., today introduced the TransMemory ID USB 3.0 Flash Drive, a simpler storage solution for people who... Read more
New iPads and OS X Yosemite Release Coming Oc...
The DailyDot’s Micah Singleton reports that Apple is planning to hold its next product announcement event on Oct. 21, at which it will unveil the iPad Air 2 and iPad mini 3 and release a final build... Read more
Logitech Bluetooth Multi-Device Cross-Platfor...
Logitech has an enviable track record of making some of the best computer keyboards and mice. At least in my estimation, the best freestanding keyboards I’ve ever used have been Logitech units,... Read more
Roundup of Apple refurbished iPad Airs and iP...
Apple is offering Certified Refurbished iPad Airs for up to $140 off MSRP. Apple’s one-year warranty is included with each model, and shipping is free. Stock tends to come and go with some of these... Read more
Sprint offers 16GB iPad mini for $199.99 with...
Sprint is offering 1st generation 16GB iPad minis for $199.99 with a 2-year service agreement. Standard MSRP for this iPad is $429. Their price is the lowest available for this model. Read more
2.5GHz Mac mini remains on sale for $549, sav...
B&H Photo has the 2.5GHz Mac mini on sale for $549.99 including free shipping. That’s $50 off MSRP, and B&H will also include a free copy of Parallels Desktop software. NY sales tax only. Read more

Jobs Board

Project Manager, *Apple* Financial Services...
**Job Summary** Apple Financial Services (AFS) offers consumers, businesses and educational institutions ways to finance Apple purchases. We work with national and Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.