Why Apple's Web TV Doesn't 'Change The Game' Like It Did For Music
Apple Inc. (NASDAQ: AAPL) is reportedly on its way to launch its own streaming service in association with major U.S. broadcasters, which may include CBS, FOX and ABC. Many are applauding the move, but some are skeptical if Apple will really be able to disrupt TV like it has done with other industries.
Edmund Lee from Re/code is doubtful that Apple can really change the game in streaming like it did with music. Lee was on CNBC Tuesday to share his views on Apple's new streaming service.
Music Was A Different Ball Game
"I don't think it changes the game as much as it did for music," Lee said. "With music the way they disrupted is they wanted to de-bundle the album, sell single tracks and the music industry basically relented. They wanted to do the same with television; when Steve Jobs was still alive, he wanted to ‘Hey, I just want people to buy one channel or two channels'."
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TV Doesn't Work That Way
He continued, "That's not how TV works. The business is designed around bundles, they held their ground and guess what this new forthcoming service will also be a bundle service. So, in a way the programmers are still winning that side of the battle and Apple won't have quite as much leverage."
Programmer's Got Leverage
"If we are talking about leverage, it's really the programmers, the TV channels basically ABC, CBS, all of the major ones, the cable networks as well. What they are trying to do is they are trying to get a leg up against the cable, telcos, satellite guys against which they are always negotiating for those fee rights. If they can start selling it through other channels directly online, it gives them a bit more leeway," Lee concluded.
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