Apple's New TV Service Will Pave The Path For 'Bigger' Ambitions

In a report published Tuesday, Cantor Fitzgerald analyst Brian White commented on Apple Inc.'s AAPL potential launch of a web TV service this fall.

White stated that Apple's "growing TV ambitions" over the past few years, combined with the announcement in January by Dish to launch Sling TV and Apple's HBO NOW announcement, an Apple TV streaming service is "ready to become a reality."

"In our view, Apple is paving the way for grander ambitions in the TV market as we believe ordering channels on an a la carte basis with HBO NOW, or in smaller bundles through a streaming TV service, has the potential to help this process along," White wrote. "We believe the current pay TV model remains antiquated, expensive, over-bundled and in dire need of major changes."

Related Link: Apple's TV Service Could Be 'Groundbreaking' With Siri And PrimeSense Technology

White stated that Apple is one of the few companies in the world that hold the potential to transform the TV industry – a welcomed development as consumers are ready for a change. The analyst added that a potential streaming TV service and offerings such as HBO NOW pave the path for even bigger ambitions for Apple with a full-blown TV that allows the company to completely control the user experience.

Shares are Buy rated with a $160 price target.