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Why Apple's Entry Into Streaming Doesn't Affect Major Broadcasters... Except Comcast

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It was revealed recently that Apple Inc. (NASDAQ: AAPL) might be planning to launch its own streaming services in association with major broadcasters in the U.S. However, Comcast Corporation (NASDAQ: CMCSA)-owned NBCUniversal is not going to be a part of it.

Mediatech Capital Partners' Porter Bibb and Bloomberg's Alex Sherman were on Bloomberg TV to discuss whether NBC is not allowed to be a part of Apple's streaming service and why the overall broadcasting industry is not impacted by Apple's entry into television.

Related Link: Has Apple Been Planning A Streaming Service Since Before Tim Cook?

It Will Work Itself Out

Sherman was asked whether NBC is allowed to refuse being a part of Apple's streaming service. "They are pushing the boundaries on it," Sherman said.

"To be honest, I would be very surprised if NBC was a long-term hold that on this, because Comcast isn't going to rock the boat with the FCC about trying to buy Time Warner Cable. So, you will think that if they are seen as standing in the way of innovation of a potentially competitive product; regulators would not look too kindly on that. So, I imagine this will work itself out with NBC."

Television Has Become An App

"I think Apple is ‘too little, too late,' and the cable industry is really not bothered by Apple's entry," Bibb said. "Apple has been fooling around with television for over a decade. That was Steve Jobs' Holy Grail. And this particular product, the Apple TV, has been five years in the works. And as a consumer product, it's a failure. They have maybe a million people buying it."

Bibb continued, "They are trying to recreate the set-top box, and that's one of the reasons that Comcast broke off the talks that they had with Apple last year, because Comcast has their X1 set-top box, which they want to push.

"Apple wants everybody in the Apple iO operating ecosystem. That's not going to happen, because television has become an app now," he concluded.

 

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