“Apple has been rumored to be making the TV network rounds once again, in order to build an affordable and disruptive streaming service,” Mark Reschke writes for T-GAAP. “Sounds great, but there is one mammoth hitch. If pricing is not aggressive enough it will not be well received.”
“Consumers dislike their communications companies as much as they disliked their mobile phones before iPhone. Comcast, Time Warner and DirecTV bundle packages are overpriced and deliver far too many programming options people do not care about,” Reschke writes. “If Apple can bring to market a set of desired network options at affordable rates, Apple TV and its service would force cable entities to offer more choices, or lose subscribers.”
MacDailyNews Take: The cable/satellite box interfaces that come with every single cable system we’ve tried make Microsoft look like genius UI designers in comparison. Yes, they’re that bad.
“The most recent information comes from JP Morgan’s Rod Hall, who reported that Apple’s TV package will provide 25 channels along with a monthly fee of $30 – $40,” Reschke writes. “Millions of U.S. cord cutters pay $40 – $60 a month for 10mbps – 25mbps internet access and download speeds. Adding another $40 for a streaming bundle pushes the combined price nearly to that of cable bundled cable packages, which provide hundreds of channels, multi-channel DVR capabilities and superior image quality over that of live streaming solutions. If Apple cannot provide a pricing model that makes sense to cord cutters and current cable subscribers alike, what is the motivation to change habits and purchase Apple’s network bundle?”
Read more in the full article here.
MacDailyNews Take: We’ll have to see what the offer is exactly, but it’s highly doubtful that Apple would bother if they couldn’t deliver something unique.