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

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Airmail 3.3.2 - Powerful, minimal email...
Airmail is an mail client with fast performance and intuitive interaction. Support for iCloud, MS Exchange, Gmail, Google Apps, IMAP, POP3, Yahoo!, AOL, Outlook.com, Live.com. Airmail was designed... Read more
Numi 3.15.1 - Menu-bar calculator suppor...
Numi is a calculator that magically combines calculations with text, and allows you to freely share your computations. Numi combines text editor and calculator Support plain English. For example, '5... Read more
Airmail 3.3.2 - Powerful, minimal email...
Airmail is an mail client with fast performance and intuitive interaction. Support for iCloud, MS Exchange, Gmail, Google Apps, IMAP, POP3, Yahoo!, AOL, Outlook.com, Live.com. Airmail was designed... Read more
Numi 3.15.1 - Menu-bar calculator suppor...
Numi is a calculator that magically combines calculations with text, and allows you to freely share your computations. Numi combines text editor and calculator Support plain English. For example, '5... Read more
TextSoap 8.4.1 - Automate tedious text d...
TextSoap can automatically remove unwanted characters, fix up messed up carriage returns, and do pretty much anything else that we can think of to text. Save time and effort. Be more productive. Stop... Read more
TextSoap 8.4.1 - Automate tedious text d...
TextSoap can automatically remove unwanted characters, fix up messed up carriage returns, and do pretty much anything else that we can think of to text. Save time and effort. Be more productive. Stop... Read more
Backblaze 4.3.0.44 - Online backup servi...
Backblaze is an online backup service designed from the ground-up for the Mac. With unlimited storage available for $5 per month, as well as a free 15-day trial, peace of mind is within reach with... Read more
Numi 3.15 - Menu-bar calculator supports...
Numi is a calculator that magically combines calculations with text, and allows you to freely share your computations. Numi combines text editor and calculator Support plain English. For example, '5... Read more
EtreCheck 3.3.3 - For troubleshooting yo...
EtreCheck is an app that displays the important details of your system configuration and allow you to copy that information to the Clipboard. It is meant to be used with Apple Support Communities to... Read more
BusyContacts 1.1.8 - Fast, efficient con...
BusyContacts is a contact manager for OS X that makes creating, finding, and managing contacts faster and more efficient. It brings to contact management the same power, flexibility, and sharing... Read more

Latest Forum Discussions

See All

The best new games we played this week
We were quite busy this week. A bunch of big mobile games launched over the past few days, alongside a few teeny surprises. There're lots of quality games to load your phone with. We've gone and picked out five of our favorites for the week. [... | Read more »
Magikarp Jump beginner's guide
Magikarp Jump is a mystifying little game. Part Tamagotchi, part idle clicker, there's not a whole lot of video game there, per se, but for some reason we can't help coming back to it again and again. Your goal is to train up a little Magikarp to... | Read more »
Goat Simulator PAYDAY (Games)
Goat Simulator PAYDAY 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: ** IMPORTANT - SUPPORTED DEVICES **iPhone 4S, iPad 2, iPod Touch 5 or better Goat Simulator: Payday is the most... | Read more »
GRID Autosport delayed until autumn
Sorry mobile racing fans -- GRID Autosport has been delayed a few months. The game is now expected to launch this fall on iOS. Feral Interactive announced that they wanted more time to work on the game's UI and overall performance before launching... | Read more »
Zombie Gunship Survival Beginner's...
The much anticipated Zombie Gunship Survival is here. In this latest entry in the Zombie Gunship franchise, you're tasked with supporting ground troops and protecting your base from the zombie horde. There's a lot of rich base building fun, and... | Read more »
Mordheim: Warband Skirmish (Games)
Mordheim: Warband Skirmish 1.2.2 Device: iOS Universal Category: Games Price: $3.99, Version: 1.2.2 (iTunes) Description: Explore the ruins of the City of Mordheim, clash with other scavenging warbands and collect Wyrdstone -... | Read more »
Mordheim: Warband Skirmish brings tablet...
Legendary Games has just launched Mordheim: Warband Skirmish, a new turn-based action game for iOS and Android. | Read more »
Magikarp Jump splashes onto Android worl...
If you're tired ofPokémon GObut still want something to satisfy your mobilePokémon fix,Magikarp Jumpmay just do the trick. It's out now on Android devices the world over. While it looks like a simple arcade jumper, there's quite a bit more to it... | Read more »
Purrfectly charming open-world RPG Cat Q...
Cat Quest, an expansive open-world RPG from former Koei-Tecmo developers, got a new gameplay trailer today. The video showcases the combat and exploration features of this feline-themed RPG. Cat puns abound as you travel across a large map in a... | Read more »
Jaipur: A Card Game of Duels (Games)
Jaipur: A Card Game of Duels 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: ** WARNING: iPad 2, iPad Mini 1 & iPhone 4S are NOT compatible. ** *** Special Launch Price for a limited... | Read more »

Price Scanner via MacPrices.net

Memorial Day savings: 13-inch Touch Bar MacBo...
B&H Photo has the 2016 Apple 13″ Touch Bar MacBook Pros in stock today and on sale for up to $150 off MSRP. Shipping is free, and B&H charges NY & NJ sales tax only: - 13″ 2.9GHz/512GB... Read more
Apple refurbished 13-inch MacBook Airs availa...
Apple has Certified Refurbished 2016 13″ MacBook Airs available starting at $849. An Apple one-year warranty is included with each MacBook, and shipping is free: - 13″ 1.6GHz/8GB/128GB MacBook Air: $... Read more
Apple restocks refurbished 11-inch MacBook Ai...
Apple has Certified Refurbished 11″ MacBook Airs (the latest models recently discontinued by Apple), available for up to $170 off original MSRP. An Apple one-year warranty is included with each... Read more
12-inch 1.2GHz Retina MacBooks on sale for up...
B&H has 12″ 1.2GHz Retina MacBooks on sale for up to $150 off MSRP. Shipping is free, and B&H charges NY & NJ sales tax only: - 12″ 1.2GHz Space Gray Retina MacBook: $1449.99 $150 off... Read more
15-inch 2.7GHz Silver Touch Bar MacBook Pro o...
MacMall has the 15-inch 2.7GHz Silver Touch Bar MacBook Pro (MLW82LL/A) on sale for $2569 as part of their Memorial Day sale. Shipping is free. Their price is $230 off MSRP. Read more
Free Tread Wisely Mobile App Endorsed By Fath...
Just in time for the summer driving season, Cooper Tire & Rubber Company has announced the launch of a new Tread Wisely mobile app. Designed to promote tire and vehicle safety among teens and... Read more
Commercial Notebooks And Detachable Tablets W...
Worldwide shipments of personal computing devices (PCDs), comprised of traditional PCs (a combination of desktop, notebook, and workstations) and tablets (slates and detachables), are forecast to... Read more
Best value this Memorial Day weekend: Touch B...
Apple has Certified Refurbished 2016 15″ and 13″ MacBook Pros available for $230 to $420 off original MSRP. An Apple one-year warranty is included with each model, and shipping is free: - 15″ 2.6GHz... Read more
13-inch MacBook Airs on sale for up to $130 o...
Overstock.com has 13″ MacBook Airs on sale for up to $130 off MSRP including free shipping: - 13″ 1.6GHz/128GB MacBook Air (sku MMGF2LL/A): $869.99 $130 off MSRP - 13″ 1.6GHz/256GB MacBook Air (sku... Read more
2.8GHz Mac mini available for $973 with free...
Adorama has the 2.8GHz Mac mini available for $973, $16 off MSRP, including a free copy of Apple’s 3-Year AppleCare Protection Plan. Shipping is free, and Adorama charges sales tax in NY & NJ... Read more

Jobs Board

*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
*Apple* Media Products - Commerce Engineerin...
Apple Media Products - Commerce Engineering Manager Job Number: 57037480 Santa Clara Valley, California, United States Posted: Apr. 18, 2017 Weekly Hours: 40.00 Job Read more
*Apple* Media Products - Commerce Engineerin...
Apple Media Products - Commerce Engineering Manager Job Number: 57037480 Santa Clara Valley, California, United States Posted: Apr. 18, 2017 Weekly Hours: 40.00 Job Read more
Best Buy *Apple* Computing Master - Best Bu...
**509643BR** **Job Title:** Best Buy Apple Computing Master **Location Number:** 001482- Apple Valley-Store **Job Description:** **What does a Best Buy Apple Read more
*Apple* Media Products - Commerce Engineerin...
Apple Media Products - Commerce Engineering Manager Job Number: 57037480 Santa Clara Valley, California, United States Posted: Apr. 18, 2017 Weekly Hours: 40.00 Job Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.