It seems television is going to be reinvented.
According to a report by the Wall Street Journal on Sunday evening, Apple is seeking to establish a partnership with Comcast, the largest broadband and television provider in the United States today. The purpose of the relationship would be to offer customers with high-quality and affordable Internet-based television service.
A joint venture would consist of an Apple TV set-top box that would provide consumers with both web-based content (movies, television programs and other applications) and live Comcast cable programming. Any such agreement would transform the television viewing experience for households everywhere.
Apple is apparently looking to be classified as a “managed service” that would particular right of entry to “last mile” connections or “the portion of a cable operator’s pipes that connect to customers’ homes.” Comcast wants to maintain customer data – Apple wants users to log in using their Apple IDs and wants to control customer data – and requires assurance that any service would not more expensive than traditional pay-TV prices.
The negotiations are still in their preliminary stages and the conclusion of the detail remains uncertain, but it has been known for quite some time that Apple has sought to enter the television market for a number of years. It is understandable to many tech experts because it would require Comcast to make an immense sum of investment – Apple would still receive a percentage of subscription revenue.
Another dilemma is that Apple must seek and secure rights from television networks. There have been previous negotiations between Apple and major media companies to gain rights to live channels and “in-season stacking rights” for video-on-demand. What this means is that Apple would be permitted to stream complete current seasons of shows on major networks and other cable channels and thus eliminate the need for a digital video recorder (DVR).
With the growing trend of American consumers cutting the cord, analysts say Comcast has more to benefit from such an arrangement with Apple – the technology firm has been in similar discussions with Time Warner Cable, while other computer companies, such as Microsoft and Sony, have attempted to launch similar ventures.
The issue with the television market could be explained by Steve Jobs, who stated in 2010:
“There isn’t a cable operator that’s national, there’s a bunch of operators. And it’s not like there’s GSM, where you build a phone and it works in all these other countries. No every single country has different standards. It’s very ‘tower of Babel-ish’, no, that’s not the right word. Balkanized. It’s very balkanized.”
It can be pretty much surmised as this: it’s messy, it’s complicated and it will still be a long time before any deal is finalized. Despite this, according to CNN, many television executives are intrigued by Apple’s pursuit.
Neither Apple nor Comcast have commented on the reports.
Earlier this month, it was discovered by Apple Insider that the company is preparing to unveil its fourth-generation Apple TV model that would sell for $99 but offer a larger number of video apps. It could be revealed to the public during the springtime.
