In my last article The Battle For Your Living Room I discussed my thoughts on how Netflix would become the “winning company” competing for your living room space. And how those corporate titans, new and old, are under the assumption that they may possess the winning strategy. In this article, I want to focus on how I think Apple may have the winning strategy this time around.
The invention of the television has truly captured our imagination; it enabled us to explore a multitude of fantasies and gave rise to a new medium for transmitting different ideas. And when TV technology became widely affordable to the mainstream, cable providers saw the potential to capitalize on their business models; prices started to increase and cable providers started creating price packages featuring gazillions of channels. This myriad of channels was soon met with consumers endlessly flicking through their content library. Suddenly, people started to realize they didn’t need all these channels to enjoy cable. Their frustrations mounted until they decided it was time to seek out an alternative.
Now fast forward to the present and cable television is showing a sign of decline. Not because people are tired of watching TV, but because they are getting fed up with over priced subscriptions.
“Personally, I haven't subscribed to any cable providers in years. As I try to look for an excuse, as to why I should pay comcast, dish network, or any other local cable providers for dozens of channels when I only really watch a handful. I still haven't found that excuse to pick up the phone and place the order. At this point, I don't want to see Comcast or any major cable providers succeed in their current form. while innovative companies are re-creating a better platform to consume media.”
With that said, Apple has spearheaded into the market and can be seen as one of the leaders in this revolution; causing disruption in the current cable model. Apple’s winning strategy? it’s simple, they are allowing sub-ecosystem (Netflix, Hulu, and others) into their already growing ecosystem, which already consists of about 250 million users who entrust them with their precious credit card information via iTunes. However, as simple as this strategy may sound, it wields a deeper, thought-provoking veil.
One illusion which is clouding most customers is the strong belief that Apple is going to disrupt the cable sector by designing a new type of TV. Don’t get me wrong I do believe Apple is going to release their own TV, but I don't believe a TV is the right strategy; I think Apple has already implemented their strategy and it’s right in front of our eyes. We already know that cable providers like Comcast are the so-called market leaders, In order for these tech giants to bring innovation to the current model is by entering the existing (cable model) the traditional way.
One illusion which is clouding most customers is the strong belief that Apple is going to disrupt the cable sector by designing a new type of TV. Don’t get me wrong I do believe Apple is going to release their own TV, but I don't believe a TV is the right strategy; I think Apple has already implemented their strategy and it’s right in front of our eyes. We already know that cable providers like Comcast are the so-called market leaders, In order for these tech giants to bring innovation to the current model is by entering the existing (cable model) the traditional way.
The only way to achieve this is by using the same strategy cable provider use: provide a cable top-box to customers in order for them to watch their content. Apple and Google, among a few others have created a miniature hardware box which acts like a bridge, allowing them to connect their users to other companies videos libraries. These boxes are most likely are collecting user behavioral data or some other metrics in order to better understand how the current cable business strategies work and use this information to hopefully create the right winning strategy.
Apple and Other players like Google taking notice how Netflix done it and taking the right action and deploying their own strategy base on (Netflix) model, but I feel Apple is ahead of their competitors; they are adding more content. Another thing is that most Apple customer own multiple Apple product in which you can also watch any content delivered to you via itunes. You don't simply have access in one single devices but all of Apple devices.
“I own multiple devices made by Apple and over the years I’ve truly enjoyed switching my content from one device to the other with ease”.
With Apple TV you can buy or subscribe to other services like Netflix and using their leverage to pull in the study stream of customer canceling their cable subscription Apple offering this services can easily appeal not just their own customer but also gain new customers to their mighty ecosystem. As the number of people buying Apple TVs increase, so does the accessible content on their platform. As time passes Apple, Netflix, hulu and others will possess the upper hand. Cable providers won't have any other choice but to give in and reduce the cost of their content . Allowing Apple (among others) to deliver their TV shows, movies, and other programs to the consumer who isn't looking to buy an overpriced subscription just to simply experience handful of TV channels.
Apple and Other players like Google taking notice how Netflix done it and taking the right action and deploying their own strategy base on (Netflix) model, but I feel Apple is ahead of their competitors; they are adding more content. Another thing is that most Apple customer own multiple Apple product in which you can also watch any content delivered to you via itunes. You don't simply have access in one single devices but all of Apple devices.
“I own multiple devices made by Apple and over the years I’ve truly enjoyed switching my content from one device to the other with ease”.
With Apple TV you can buy or subscribe to other services like Netflix and using their leverage to pull in the study stream of customer canceling their cable subscription Apple offering this services can easily appeal not just their own customer but also gain new customers to their mighty ecosystem. As the number of people buying Apple TVs increase, so does the accessible content on their platform. As time passes Apple, Netflix, hulu and others will possess the upper hand. Cable providers won't have any other choice but to give in and reduce the cost of their content . Allowing Apple (among others) to deliver their TV shows, movies, and other programs to the consumer who isn't looking to buy an overpriced subscription just to simply experience handful of TV channels.
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