Apple (AAPL) Nears Deals Which Could Change American Living Rooms...
Tweet Send to a Friend
Get Alerts CMCSA Hot Sheet
Down)
Trade CMCSA Now!
Comcast (Nasdaq: CMCSA) and Time Warner Cable (NYSE: TWC) are ticking higher Thursday following reports that Apple (Nasdaq: AAPL) could be in discussions with major U.S. operators to allow customers to view content on its own set-top-box (STB) unit.
But the chatter comes after years of Apple trying to gain a spot in U.S. households. One of the big hurdles operators face is letting Apple grab a spot in the broadcasting process. Typically, operators rent an STB to customers for about $10 to $15 per month, while competitors like Samsung, Google's (Nasdaq: GOOG) Motorola, Google itself, and TiVo (Nasdaq: TIVO) already sell STBs without a notable impact.
However, Apple used the same strategy in mobile and look how that turned out. (Answer: well.) Apple convinced carriers to combine their service with Apple's hardware and software just ahead of the iPhone launch in 2007.
Apple's current offering, Apple TV, is an STB device which allows for viewing of paid content and streaming music, but doesn't provide the ability to watch live TV. Whether a new version of Apple TV will include new technology to optimize cable broadcasting hasn't been made clear. Mostly, speculation surrounds Apple debuting a new TV set sometime in 2013.
Not everyone wants to shell-out $1,500 for a new TV, though. Apple knows this and might feel just as comfortable selling a more compact STB for $100 to $400 or so.
Despite the immediate impact it would have on the TV industry, new technology would also make a new Apple STB formidable in the gaming environment. Those that play video games know Microsoft (Nasdaq: MSFT) and Sony (NYSE: SNE) are expected to do a hardware refresh in 2013 (rumors, nothing confirmed). Both are also trying to transition the gaming console into more than just games, opting for an entire home entertainment experience. There's no reason the next offering from Apple wouldn't be able to do the same thing.
Regardless, a deal with operators has to be worked out first. With Apple historically demanding a 30 percent cut of certain transactions, cable operators to service the box, and exclusivity in providing STBs for operators, it might be a tough negotiation.
Should a deal get struck, then Apple might once again find itself changing yet another industry. Something it's completely comfortable in doing.
Shares of Apple are up in early Thursday trading.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
But the chatter comes after years of Apple trying to gain a spot in U.S. households. One of the big hurdles operators face is letting Apple grab a spot in the broadcasting process. Typically, operators rent an STB to customers for about $10 to $15 per month, while competitors like Samsung, Google's (Nasdaq: GOOG) Motorola, Google itself, and TiVo (Nasdaq: TIVO) already sell STBs without a notable impact.
However, Apple used the same strategy in mobile and look how that turned out. (Answer: well.) Apple convinced carriers to combine their service with Apple's hardware and software just ahead of the iPhone launch in 2007.
Apple's current offering, Apple TV, is an STB device which allows for viewing of paid content and streaming music, but doesn't provide the ability to watch live TV. Whether a new version of Apple TV will include new technology to optimize cable broadcasting hasn't been made clear. Mostly, speculation surrounds Apple debuting a new TV set sometime in 2013.
Not everyone wants to shell-out $1,500 for a new TV, though. Apple knows this and might feel just as comfortable selling a more compact STB for $100 to $400 or so.
Despite the immediate impact it would have on the TV industry, new technology would also make a new Apple STB formidable in the gaming environment. Those that play video games know Microsoft (Nasdaq: MSFT) and Sony (NYSE: SNE) are expected to do a hardware refresh in 2013 (rumors, nothing confirmed). Both are also trying to transition the gaming console into more than just games, opting for an entire home entertainment experience. There's no reason the next offering from Apple wouldn't be able to do the same thing.
Regardless, a deal with operators has to be worked out first. With Apple historically demanding a 30 percent cut of certain transactions, cable operators to service the box, and exclusivity in providing STBs for operators, it might be a tough negotiation.
Should a deal get struck, then Apple might once again find itself changing yet another industry. Something it's completely comfortable in doing.
Shares of Apple are up in early Thursday trading.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Tesla (TSLA) Ramps Higher (GM)
- Wow, Just Look at the Pipes on That...Smartphone? (AAPL) (INTC) (ARMH)
- Next Big Thing from Apple (AAPL) Could be a Big Flop - Analyst
Create E-mail Alert Related Categories
Insiders' Blog
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
