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Apple TV is a Natural Play
by Andrew McCaskey
The Power in the ITunes Music Store
There has got to be some credibility in the multiple rumors that are floating concerning the pitch from Apple to various television networks and content owners to allow Apple to provide television content for a monthly $30-$40 fee through iTunes. Disney seems to be the most likely content provider to buy into the deal, based on the close relationship that Disney and Pixar have had over the years.
If there is one thing that Apple has been able to do, it is to show how to effectively sell and deliver digital content efficiently. And with close to 100million installations of the iTunes Music Store software on Windows machines, it has the penetration and delivery depth that even Hulu will envy.
One player that will be a lot more difficult to grab will be NBC Universal, especially if the proposed merger with Comcast goes into effect. That could put NBC at a significant dis-advantage with competitive material available on the iTunes platform and an expectation that even more programming be available online in some form.
It didn’t have to be that way – reasonable channel packages from cable and satellite providers that got rid of the shopper channels, television preachers, infomercial channels and similar dreck at $85 a month and moved to that $35 price point could have prevented the whole problem.
Apple just sees a consumer need and prepared a product that people will want at a price they are more than willing to pay. Nothing evil about that.
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