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
$567.00
Apple Inc.
+42.25
MSFT
$39.53
Microsoft Corpora
-0.16
GOOG
$525.07
Google Inc.
-1.87

MacTech Search:
Community Search:

Software Updates via MacUpdate

Ember 1.5.1 - Versatile digital scrapboo...
Ember (formerly LittleSnapper) is your digital scrapbook of things that inspire you: websites, photos, apps or other things. Just drag in images that you want to keep, organize them into relevant... Read more
Cyberduck 4.4.4 - FTP and SFTP browser....
Cyberduck is a robust FTP/FTP-TLS/SFTP browser for the Mac whose lack of visual clutter and cleverly intuitive features make it easy to use. Support for external editors and system technologies such... Read more
TechTool Pro 7.0.3 - Hard drive and syst...
TechTool Pro is now 7, and this is the most advanced version of the acclaimed Macintosh troubleshooting utility created in its 20-year history. Micromat has redeveloped TechTool Pro 7 to be fully 64... Read more
MacFamilyTree 7.1.6 - Create and explore...
MacFamilyTree gives genealogy a facelift: it's modern, interactive, incredibly fast, and easy to use. We're convinced that generations of chroniclers would have loved to trade in their genealogy... Read more
EtreCheck 1.9.9 - For troubleshooting yo...
EtreCheck is a simple little app to display 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... Read more
TeamViewer 9.0.28116 - Establish remote...
TeamViewer gives you remote control of any computer or Mac over the Internet within seconds, or can be used for online meetings. Find out why more than 200 million users trust TeamViewer! Free for... Read more
Viber 4.1.0 - Send messages and make cal...
Viber lets you send free messages and make free calls to other Viber users, on any device and network, in any country! Viber syncs your contacts, messages and call history with your mobile device,... Read more
Apple iOS 7.1.1 - The latest version of...
The latest version of iOS can be downloaded through iTunes. Apple iOS 7 brings an all-new design and all-new features. Simplicity Simplicity is often equated with minimalism. Yet true simplicity is... Read more
1Password 4.3 - Powerful password manage...
1Password is a password manager that uniquely brings you both security and convenience. It is the only program that provides anti-phishing protection and goes beyond password management by adding Web... Read more
Lens Blur 1.3.0 - True out-of-focus boke...
Let Lens Blur transform your existing photo into true SLR-quality out-of-focus bokeh effect! Everyone needs a gorgeous personalized background for a social profile, blog, Web/UI design, presentation... Read more

Latest Forum Discussions

See All

Soccer Rally 2 Review
Soccer Rally 2 Review By Carter Dotson on April 24th, 2014 Our Rating: :: GOALKEEPINGUniversal App - Designed for iPhone and iPad Soccer Rally 2 is the most serious vehicular soccer game ever created.   | Read more »
Galaxy Conquerors Review
Galaxy Conquerors Review By Jennifer Allen on April 24th, 2014 Our Rating: :: RETRO SHOOTINGUniversal App - Designed for iPhone and iPad Old school shooting is fun but inaccurate in Galaxy Conquerors.   | Read more »
Yomi Review
Yomi Review By Rob Thomas on April 24th, 2014 Our Rating: :: C-C-C-COMBO BREAKERiPad Only App - Designed for the iPad Round One – Fight! No quarters required for this iOS adaptation of a tabletop adaptation of the arcade fighting... | Read more »
Injustice: Gods Among Us Updated with Ne...
Injustice: Gods Among Us Updated with New Characters, Leaderboards, Gear, and Online Multiplayer Posted by Rob Rich on April 24th, 2014 [ | Read more »
Spin It Review
Spin It Review By Jordan Minor on April 24th, 2014 Our Rating: :: SPIN ME RIGHT ROUNDUniversal App - Designed for iPhone and iPad Spin It has a fine puzzle game model, but its execution lacks energy.   | Read more »
Productivity App NoteSuite is Having its...
Productivity App NoteSuite is Having its Biggest Sale Ever, Just for One Week Posted by Rob Rich on April 24th, 2014 [ permalink ] | Read more »
Wayward Souls Review
Wayward Souls Review By Carter Dotson on April 24th, 2014 Our Rating: :: CARRY ON, WAYWARD SONUniversal App - Designed for iPhone and iPad Wayward Souls is a roguelike-inspired action-RPG that sets a high bar for other games to... | Read more »
The Sandbox Gets Update, Receives New Ca...
The Sandbox Gets Update, Receives New Campaign and New Elements Posted by Tre Lawrence on April 24th, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Football Management Simulator One For El...
Football Management Simulator One For Eleven Released Worldwide Today for iOS Posted by Simon Reed on April 24th, 2014 [ permalink ] Free-To-Play football management title One For E | Read more »
Leo’s Fortune Review
Leo’s Fortune Review By Jordan Minor on April 24th, 2014 Our Rating: :: FORTUNATE SONUniversal App - Designed for iPhone and iPad Leo’s Fortune delivers a platforming experience as creative and refined as any console game.   | Read more »

Price Scanner via MacPrices.net

Award-Winning NoteSuite Productivity App is $...
Minneapolis based Theory.io has announced an 80-Percent Markdown NoteSuite for iPad. NoteSuite helps users stay organized by capturing their notes, to-dos and documents in one organized place.... Read more
16GB 1st generation iPad mini available for $...
Radio Shack has a select number of refurbished 1st generation 16GB WiFi iPad minis available for $199.99 on their online store. Choose free shipping or free ship-to-store. We expect these to sell out... Read more
13-inch 2.5GHz MacBook Pro on sale for $100 o...
B&H Photo has the 13″ 2.5GHz MacBook Pro on sale for $1099 including free shipping plus NY sales tax only. Their price is $100 off MSRP. Read more
iPad Sales “Lull” A Reality Correction Of Unm...
I have lots of time for Jean-Louis Gassée, the former Apple Computer executive (1981 to 1990) who succeeded Steve Jobs as head of Macintosh development when the latter was dismissed in 1985. Mr.... Read more
Apple Makes OS X Betas Available To All – Wit...
Apple’s OS X Beta Seed Program, which lets you install the latest pre-release builds, try it out, and submit your feedback, is now open to anyone who wants to sign on rather than to developers and... Read more
Apple Releases iOS 7.1.1 Update
The latest iOS 7.1.1 update contains improvements, bug fixes and security updates, including: • Further improvements to Touch ID fingerprint recognition • Fixes a bug that could impact keyboard... Read more
Logitech Announces Thinner, Lighter, More Fle...
Logitech has announced an update to its Ultrathin for iPad Air, iPad mini and iPad mini with Retina display, improving the flexibility and design of its award-winning predecessor with an even thinner... Read more
Logitech Introduces Hinge, Big Bang and Turna...
Logitech has announced expansion of its tablet product line with three new cases – the Logitech Hinge, the Logitech Big Bang and the Logitech Turnaround – each for the iPad Air, iPad mini and iPad... Read more
WaterField’s Rough Rider Leather Messenger Ba...
WaterField Designs have announced the new 15-inch size of their popular Rough Rider leather messenger bag, a vintage-looking bag that combines Old West charm and ruggedness with distinctly modern... Read more
New Mac Pro on sale, save $100 on the 4-Core...
J&R has the new 4-Core Mac Pro in stock today and on sale for $2899 including free shipping plus NY sales tax only. Their price is $100 off MSRP, and it’s the lowest price available for this... Read more

Jobs Board

*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
Position Opening at *Apple* - Apple (United...
…customers purchase our products, you're the one who helps them get more out of their new Apple technology. Your day in the Apple Store is filled with a range of Read more
*Apple* Solutions Consultant (ASC) - Apple (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple Read more
*Apple* Inc. Research Data Specialist - Appl...
…of Worldwide Market Research & Intelligence. The team is responsible for conducting Apple branded consumer market research. It is also responsible for analyzing data Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.