Apple Recon

I am not sure how reliable Apple Recon when it comes to Apple related news and rumors, but they have just woken up to the fact that Apple TV could very well disintermediate the television networks and the cable companies from television content distribution.

In fact I wrote about it in mid-january.

Given enough bandwidth, it becomes possible to deliver TV shows and movies directly to the consumer over the internet. Apple’s iTunes, Netflix and Amazon’s Unbox Wideo are all starting to do this but I get the impression that there are still some bandwidth and latency issues to overcome. These issues will be sorted out in due course, and this will pave the way for content producers to deliver TV shows and movies directly to the consumer, either as a pay for service or with ads, or a combination of both.

I think this will be great for consumers because they will be able to pick and choose what shows they want to watch and when they want to watch them.

I think that the television networks and the cable companies should take a long hard look at this incursion into their market and figure out how to adapt, otherwise they may well go the way of the dodo. While the introduction of Apple TV looks like a wise tactical move for Apple on the surface, it extends the reach of iTunes from the computer into the living room, and this is a move that has strategic implications for this industry.

What is ironic here is that the cable industry, by providing consumers with more and more bandwidth over cable, contributes to its own demise in the long term.

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