“Akamai Technologies reported Q2 profit that missed views amid network investments tied to the delayed launch of Web TV services by Apple, sending its stock down late Tuesday,” Reinhardt Krause reports for Investor’s Business Daily. “Akamai’s current quarter EPS and revenue guidance also fell short of expectations. Akamai’s stock fell 11% in after-hours trading.”
“Akamai is the biggest provider of content delivery network (CDN) services to media and entertainment companies. Akamai’s capital spending jumped 34% to $112.4 million from the year-earlier period,” Krause reports. “Akamai has upgraded its network of computer servers to support a Web TV service planned by long-time customer Apple. Apple’s Web TV launch may slip into 2016, analysts say.”
“Akamai CEO Tom Leighton, on its earnings call, said there’s potential 2016 upside as well as risk in video-related network investments,” Krause reports. “‘It’s really hard to predict the rate of adoption and when new OTT (over-the-top TV) services will become available,’ Leighton said.”
Read more in the full article here.
MacDailyNews Take: Hopefully much will come together (HomeKit, Apple TV, Applel Watch, iPad, iPhone) when Apple’s Internet TV service is finally revealed in all of its glory.
SEE ALSO:
US judge delivers potential landmark ruling, says Internet TV should be treated like cable – July 17, 2015
Apple Internet TV potentially worth billions to the bottom line – July 15, 2015
CBS CEO: We’re still in negotiations with Apple over new Internet TV service – May 27, 2015
Time Warner CEO ‘pretty confident’ Apple will launch Internet TV service soon – April 29, 2015
Disney presses Apple to carry more channels on forthcoming Internet TV service – April 8, 2015
Apple asks TV programmers to supply their own streams for proposed Internet TV service – April 1, 2015
I want Akamai to quit spamming my computer with offending and unwanted cookies; I don’t use its services and and I will ask when I want to use them. Otherwise stay off of my computer.
Stop using their services (good luck with that), and you’ll stop receiving their cookies.
Can’t see how they can blame an unreleased service for their issues.
Agreed.
really ? I believe Akamai serves all of Apple’s data to the world. The cloud, iTunes.. everything. They made a specific investment for a new Apple service that may require the same insane bandwidth it takes to serve everything else Apple. Of course it can be blamed!
You do understand that they had to spend money to build up services capabilities don’t you? They have no return on that investment (ROI). That expenditure was clearly for the long awaited Apple TV service. It’s beginning to look like Apple couldn’t pour piss out of a boot if the directions are written on the heel. Their services attempts are nothing but clusterfucks. Pathetic!
Did they?
Here we have a rumor that they had to spend money to build up services to (rumor) support a deal (rumor) to deliver content for a new Apple TV service (rumor).
Setting aside your moaning, Mona [Harry Potter reference]… It’s hard for me to imagine Akamai having a contract with Apple that did not include a start date for the service, at which point Apple would be paying Akamai money to maintain that service, whether it was active or not. Is there another revenue stream involved that is dependent upon users making use of the stream, such as a bandwidth tax paid by Apple?
Before calling Apple naughty names, I’d rather know exactly what’s going on here.
I’ll also point out the very long standing intransigence of the US media oligarchy who live in the last century and outright refuse to deal with the 21st century. They’ve hampered every progressive attempt to change the media delivery paradigm. There have been many reports over many years of Apple attempting to overcome the Luddite nature of the media oligarchy and failing to do so. There have been some changes, with TV networks grudgingly setting up their own streams, both paid and unpaid. But formally killing off the need for cable TV and/or satellite TV is not, as of yet, happening to any great extent. HBO and a couple other services are the exception.
When you start waiting for content people, your hardware will go down hill see Sony.
I hate to admit..
But if apple promissed a certain release date in their negotiations…then Akami considered expenditures relative to that release date, after which revenues would flow in.
This apple Tv thing may be an fantacy to the publics mind… But apparently a real thing with dates and deadlines for Akami and anyone else involved in the process of making it a reality .
At least it gives credence to this Apples TV revolution thing becoming real soon !?
Why is this being called “Web TV”. Microsoft bought that name as a trademark, albeit spelled “WebTV” and the name for the service eventually becoming “MSN TV” before it became another MS casualty.
https://en.wikipedia.org/wiki/Web_television
Whatever it is let’s get it done. I want to terminate Comcast TODAY! Need to change Timber’s moniker to Slow and Slower.
He called it a web tv service, as a generic term because its TV and over the web. He probably doesn’t remember MS’ actual WebTV product, because who does ?
Whoever quoted him decided to spell it “Web TV” which makes it sound more official when you read it.
I’ve never seen ‘web’ capitalized except when referring to the, invented by Philips, Web TV devices.
Really?
I describe what we humans to be ‘reality’ as a vastly complex matrix of energy patterns. We see matter. But what’s ‘really’ there is energy in various configurations within the overall three dimensional space we occupy. The more energy within an energy configuration, the greater its mass and therefore gravity. Literally everything we humans observe in our world has the quality of gravity. I’m tempted to consider gravity to be another dimension, added to the three we already define as ‘space’. I strongly suspect that will become the case in the future.
Therefore, what is ‘really’? It’s consistently a lot more than we humans can sense or understand.
Wander and wonder onward…
MDN, where can I get one of these Appel watches ?