Monday, October 29, 2012

Prisoners of Cable - Derek Thompson - The Atlantic

Excerpt from an overview of reasons why TV, at least in North America, won't be like the music industry
"A full-blown iTV would complete a hat trick of screen domination for Apple—phone, computer/tablet, and TV—and the ability to move video between devices might create a kind of “halo effect” that would make each product more alluring. But Apple is primarily a hardware company, and its profits lie primarily in selling you devices. To change the economics of television programming, Apple would need to take on the cable providers by striking deals with media companies, starting with the Big Seven. That’s just not happening. Instead, as The Wall Street Journal reported in August, Apple is working with cable providers to bring content to Apple TV and its potential successors, having long ago ditched the idea that it wanted to be in the business of haggling with Viacom over the right cost of the giant media company’s channels. Apple has realized that it doesn’t have to beat Comcast and Verizon to own your living room. It only has to join them."
Prisoners of Cable - Derek Thompson - The Atlantic
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