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Monday, 19 September 2011 11:24

Tame Apple Press starts talking up Apple TV

Written by Nick Farell
apple

More corporate bottom licking
Bloomberg's credibility just shot down the loo after it started talking up Apple's latest plan to get into 3DTV. In one of the more sycophantic press pieces we have seen since Jobs exited as CEO, Bloomberg claimed it “liked the way that Tim Cook was thinking” with his plans to release a 3DTV.

The plan would see a new Apple TV set replacing today's cable systems, game consoles, and 3D goggles. “Get ready, America, because by Christmas 2012 you will have an Apple TV in your living room,” Bloomberg said. Notice the use of advertising language masquerading as news?

Bloomberg correctly points out that Tim Cook, needs a hit and appears to be choosing television as the way to do it. TV is still the king of all media but more than 86 per cent of available channels are never used by an individual viewer.

Bloomberg claims that if Apple were to offer a better service, people might pay up for it. We should emphasis the word if.

Apple is hoping to make a killing out of TV advertising. Online advertising only raised $1 billion in 2010 despite years of hype. TV advertising scored $70 billion in 2010 and is forecast by Forrester Research to reach $84 billion by 2015. If Apple could gain just 10% of the $74 billion in current video subscription fees and $70 billion in television ad media, it would take in more than $14 billion, Bloomberg enthuses.

Bloomberg admits that Apple faces plenty of hurdles. For a start tellies are an infrequent purchase. Apple likes to flog things that will be out-of-date within a year to 18 months. People don't change their telly because the new one has an aluminum frame.

Apple is also going to find it tough getting content at a price which makes it worthwhile for punters to be interested. Big Content also will not let Apple have its way when it comes to telly content and will be just happy to let Apple die.

So far Apple has not had success in the telly market either. Its Apple TV is widely seen as a joke. The other problem is that no one is actually buying 3D TVs at the moment. The industry is in recession. There is not enough 3D content out there to make it worthwhile, and besides people can't afford the new tellies.

All up if Apple is hoping to lean on its weakest leg in the future then Cook is doomed. Nothing that Bloomberg says can sort that out for them.

More here.


Nick Farell

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