THE CABLE PIPELINE

What happens when you put a cutting-edge and innovative company like Apple into the TV business? That may be what business analysts are scrutinizing in the Apple TV venture, which has slipped “under the radar” of most pundits, because Apple is being very low-key about the business. It has surged and slowed with the tide as the company works to figure out how to make it a viable venture.

 It has both successfully and methodically worked on ITunes-HD Rentals, gaming, iPhones, software, and now Apple TV, which will not be just any set-top box filled with innovative consumer applications; it will be a DVR with the potential to combine what may be an unbeatable combination of consumer applications and could go whizzing past traditional broadband services before being recognized.

 What do current Cable/Telco companies have to fear? It could be the likes of competing with a company like Apple, with the resources to partner with content programmers, and consumer electronics companies, to offer a significant and competitive product in competing with Pipelines in the consumer market place. This would be some serious competition for the Tru2Way application, if and when it gets up and running, while Apple has already teamed with LG Electronics in a $500 million deal to that end.

 Gene Munster, a Piper Jaffery Analyst indicates that:

 “We continue to believe that Apple will eventually offer a monthly subscription for iTunes TV shows accessible on Apple TV, iPods, iPhones, and Macs/PCs. Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub-library of its TV shows for a standard monthly fee ($30 to $40 per month).”

 Apple indicates that it will continue to invest in Apple TV from COO Tim Cook’s statement:

 “we fundamentally believe there is something there for us in the future”

 This is a high-stakes game of first to market with the best-product and best-price in the consumer home digital interactive video, electronics, and broadband market. While the competitors are from different sectors, manufacturing Vs service, the outcome could be quite surprising. There is no room for the slow moving in this rapidly changing consumer realm. Companies have to be focused on offering the right product, at the right price, at the right time.