pflint

Apple TV recently announced that they have sold 1 million units.   The question comes to mind is how many units or more importantly households will Apple TV need to penetrate before the cable tv networks take them seriously?   When do they make the decision that Apple TV distribution is worth fighting for?   My guess is that if they could you would see MTV, HBO and ESPN on Apple TV today.  The problem is that their affiliate distribution agreements with the cable operators prevent them.    Cable operators are concerned that web distribution of cable tv programming will erode their subscriber base.   And based on history they should be.  Their answer to this problem is “TV Anywhere”.    Cable subscribers will have the ability to access programming that they have paid to receive in their homes eventually over the web as well.  Comcast launced their xfinity iPad application which directly addresses this issue.  Very soon you will be able to control your tv remotely and watch programming on your iPad.   BTW this is a great application. 

Having spent many years in the cable tv business I remember when satellite television was introduced and the negotiations content providers had with the cable operators to allow their programming to be distributed over satellite.  Years later Direct TV embraced technology innovation to compete.  They introduced DVR enabled set top boxes before cable and they introduced HD programming faster than cable.  These two intitiatives enticed millions of consumers to abandon cable and place a dish on their roof.  Apple TV and perhaps even Google TV pose a similar threat once they achieve scale.

When MTV launched in 1981 with the I want my MTV campaign consumers were encouraged to call their cable operator and request it.  I can’t wait for the day when programmers will be as agressive about getting their content on Apple TV.

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