Apple's Internet TV service to subvert the traditional cable TV


The same thing, different companies do the difference between the industry and society, there is a world of difference. Japan's Sony Internet TV (live channel plus video on demand) service is coming soon in the United States, but the market is limited.


On Monday, American authoritative media reported that Apple is planning an Internet TV service and will launch a package containing 25 channels in the fall. The United States network media "Huffington Post" that Apple's move will bring a major earthquake to the traditional cable and satellite television, the cable industry may now feel "very horrified."

US media pointed out that Apple's Internet TV service will bring a huge impact to the pay television industry, forcing them to lower prices, improve services, or launch similar channel packages to fight back.

According to Jan Dawson, an independent telecommunications industry analyst in the United States, Apple’s move will put tremendous pressure on traditional cable and satellite TV and change the rules of the game. In fact, many pay TV providers have long-term lack of competition, leading to high prices, poor customer service, complex channel packages, and disgusting user interfaces.

Since last year, some television stations and channels in the United States have started to launch Internet TV services and no longer require users to qualify for cable and satellite TV subscribers. However, the number of channels is limited and services are still being launched. The pay TV industry has not really seen the impact.

According to the report of the Federal Communications Commission of the United States last year, from 1995 to 2013, the price of the US cable TV "basic channel package" rose by 188%. Executives in the pay-TV industry have claimed that users get more channel services through bundled packages, so the price increase is completely reasonable.

However, the reality is that many cable TVs offer packages for more than 200 channels at a time, and users do not need so many channels at all. Daniel Ernst, a US technology and media industry analyst, said that regular families often watch less than 20 channels.
Ernst said that consumers want to watch several major television stations, such as ABC, CBS and Fox, plus a few premium channels such as ESPN and HBO, plus Internet video service Netflix.

According to reports, Apple's Internet TV service will not be able to subscribe to a single channel, but the minimum channel package is only 25 (including ABC, CBS, Fox and ESPN), there will be no problem of the number of channel bloated. There is still no NBC in the big TV station. It is reported that there was a problem in the negotiations between Apple and the Taiwanese.

The price of Apple's Internet TV service is still ominous. It is reported that the monthly subscription is 30 to 40 U.S. dollars, and the New York Times in the United States claims 20 U.S. dollars. The terminal equipment that this service lands includes the apple set-top box, and Apple's mobile phone, tablet, computer and other equipment.

In addition, at this spring's new product launch conference, Apple announced that the set-top box will introduce the Internet streaming service of the well-known paid channel HBO, and users do not need to become subscribers of the HBO channel of the cable or satellite network in advance.

For the pay-TV industry, various unfavorable factors have surfaced and the industry has entered a predicament. The news that Apple has entered Internet TV can be described as worse.

As we all know, in recent years, the subscribers of US cable and satellite TV have been losing. More and more young people watch TV dramas, reality shows and other programs through Netflix and Amazon's video services, and have never opened cable services. .
Sony will soon launch Internet TV services in the United States. In addition, communications giant Verizon also announced that it will launch a web-based TV service later this year.

Of course, faced with changes in the habits of television viewers' consumption habits, some keen pay-TV companies have initiated a transition. At this year's Las Vegas International Consumer Electronics Show, satellite television service provider Dish announced that it will launch an Internet TV service that includes 12 channels for a monthly subscription of US$20.

Analyst Ernest said that Apple introduced a player and music download service, bringing a revolution to the music industry. In the competition with cable TV, Apple is also in a favorable position.

The media pointed out that Apple’s Internet TV service will provide a better set-top box user experience and will not charge so-called set-top box rental fees. Therefore, once users defect to the Apple TV service, it will be difficult for cable TV to fight back.

For the pay-TV industry, Apple's other formidable part is its huge brand influence and fan base - Apple is a favorite company for most Americans. In the BrandIndex brand rankings, Apple ranks in the top ten among more than 1,300 brands, and all cable TV operators have brand names at the end.
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