Perezonomics
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For Apple To Be the Hero, There Must Be a Villain

5/12/2016

 
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I don’t think that services is the panacea for Apple that many do but I don’t discount their importance to Apple in selling more iPhones and iPads. In 2010 after dealing with the headaches of getting my own music onto my Creative Zen, I finally cried uncle and purchased my first Apple iPod Touch. iTunes made the device more desirable.
 
Kirk McElhearn on the latest episode of The Committed podcast made an excellent point regarding Apple’s iTunes. That is, the reason that Apple was able to get the record companies on board was due to the havoc that Napster was wreaking on their world and there is no one playing that role now. The presence of a clear and present danger caused these disparate nomadic bands to crown someone king.
 
That is the missing ingredient this time around with Apple’s efforts to try and get some kind of TV service off the ground. There is no clear villain. Netflix? A respectable business that pays them fees? That’s a toothless tiger. BitTorrent? An arcane system full of land mines. Too small.
 
It’s hard to imagine Apple ever getting the deals necessary  with the media companies  to offer a low-cost TV subscription unless there is a Napster-scale threat. That would be a wholesale digital looting by the public that is rampantly stealing any TV show that they want and cancelling their cable subscriptions. 

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    Robert Perez

    Manufacturing and distribution analysis since 1993.

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