“In a report to clients issued Friday, RBC’s Mike Abramsky ticks off the key takeaways from his meeting with Eddy Cue (vice president for iTunes and Internet services), David Moody (vice president for worldwide Mac marketing) and CFO Peter Oppenheimer,” Philip Elmer-DeWitt reports for Fortune.
At one point, “they were talking about Apple TV, but it was as if they were thinking about future tablet computers,” Elmer-DeWitt writes.
Here’s what Abramsky reports, in analyst shorthand, about that portion of the conversation: “Video/Content Opportunities. After music, video content is expected to be the next “exploding” opportunity, but requires overcoming industry rights dysfunctionality, competing with subsidies (cable box, video), and developing the right consumer ‘offer.’ Apple TV, while still a ‘hobby,’ is well positioned to benefit from evolving market dynamics. Apple was less enthusiastic about the online book/newspaper market, given unattractive industry structure.”
Elmer-DeWitt writes, “Sounds like they expect an Apple tablet — should they be building one — to be used a lot more for watching movies than for reading novels and newspapers.”
Read the full article, with other highlights of the Apple execs’ remarks, here.