Apple + Ad-Free TV Subscriptions= More Trouble for Cable TV Providers

The Appetizer

Apple is considering offering, “ad-free, broadband-delivered television subscirptions,”– and CBS and Disney are interested.  The subscription is offering the broadcast networks  $2- $4 per month per subscriber, and $1-2 per month per subscriber for basic cable networks.

The Main Course

The Dessert

If this flies, expect to see Apple to be in some serious fist fights with the cable and IPTV industries.  This does three things– 1) it gives users what many have always asked for and wanted– no advertisements interrupting their programming and it allows them the potential ability to pick and choose what networks/stations they actually want versus having to take packaged channel offerings like cable, satellite, and IPTV providers currently offer 2) it would immediately make the content available multi-platform thanks to Apple’s products  3) It would eliminate the need for someone to have a cable, satellite, or IPTV subscription.  All they would have to do is send their subscription stream to their television sets via Apple TV, and just like that, the same stream that was on their mobile device or computer, would now be on their tv set– without commercials!  And more importantly, it would only be the content providers that they want instead of everyone.  Apple has the following, so along with turning the tides of the music, video rental, and videogame industry, now it would also effect the cable, sattellite, and IPTV providers.  This is a lot bigger than it may initially look becaue if it does happen, there is another group that will be effected if it successfully takes off– advertisers.  If a large chunk of viewers subscribe directly to network streams instead of watching free television that has advertising, then their viewership impact decreases, which could effect their sales.  And of course for television networks, it could/would effect how much they could charge for ad-based programming.  However with that said– people love free.  About the only incentive that this has for people to purchase the ad free offerrings of the content is the flexbility of its availability and potential option of picking and choosing what they want for channels.  Now if Apple goes the other route and sells packaged channel options, there is still the threat to the cable, satellite, and IPTV providers because again, it will be multiplatform available immediately.  While the traditional providers are still integrating multiplatfrom (ie- TV Everywhere) models into their system,  and IPTV networks have a leg up on them thanks to already being streamed via internet,  Apple already has the best of both worlds– users and products that can be used with each other in the hands of millions of loyal and growing followers.  And all Apple would have to do to companies such as Uverse who have apps that are being released on their (Apple) mobile platforms is block them– and then they (Apple’s competitors) are in trouble.  Just ask Adobe.

The Overall Meal

5 Stars!

The Doggybag

Simple Question– do you think it will it catch on?

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