Report: Apple TV, Facing Huge Obstacles, ‘Likely to Come Later Rather Than Sooner’

Aug 27, 2012  •  Post A Comment

Consumers waiting for an Apple TV product may have a long wait on their hands, according to an article from Fortune, which bases its story on a financial analyst’s report about his meeting last week with two Apple executives.

The report, issued Friday, was from Pacific Crest’s Andy Hargreaves, who spoke Wednesday with Apple CFO Peter Oppenheimer and Eddy Cue, senior VP for Internet services and software.

Cue told Hargreaves that Apple "will enter markets where it feels it can create great customer experiences and address key problems," according to the Pacific Crest report.

While Apple could create a better user interface, Cue pointed out that Apple faces challenges in finding a different way to deliver content from the current multichannel pay-TV structure, the story notes.

The report continues, "Unfortunately for Apple and for consumers, acquiring rights for traditional broadcast and cable network content outside of the current bundled model is virtually impossible because the content is owned by a relatively small group of companies that have little interest in alternative models for their most valuable content."

Other challenges include a lack of international scale and variations in regional broadcast, which "create significant hurdles that do not seem possible to cross at this point," Hargreaves wrote.

Cue’s message seems to indicate that Apple’s anticipated TV breakthrough "is likely to come later rather than sooner," Fortune points out.

One Comment

  1. This is the first crack in the Armour after Jobs death. He never would have wasted time on a project that is so dominated by contracts where he couldn’t get an advantage. That $700/share price may not last long if they keep wasting time and resources in areas like this.

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