“A published report Tuesday that Apple Inc. is ramping up a subscription-video service that could compete with cable and satellite TV is intriguing, analysts said, though a competing online video effort already underway could create obstacles for the initiative,” Rex Crum and David B. Wilkerson report for MarketWatch.
“Shaw Wu, an analyst who covers Apple for Kaufman Bros says, ‘Some sort of a la carte business model with iTunes could make a difference in how Apple expands into TV. The issue is going to be getting the networks to go along in a way that doesn’t cut too much into their business,'” Crum and Wilkerson report.
Crum and Wilkerson report, “Harry DeMott, a former media analyst who now runs the venture capital firm Riva Ridge Ventures [remarked that] the main appeal of Apple’s new service — and all of the online video services — to the networks may be the possibility of finding entirely new consumers. ‘If you look at a lot of the people who watch Hulu or ABC.com … I think those are people who have sort of been lost to the networks to begin with.'”
Full article here.