Apple’s TV plans still stuck in neutral

Written by

Peter Kafka, Recode:

Apple and Hollywood studios are wrangling over pricing for “4K” movies Apple plans to sell on a new version of its Apple TV box.

And:

As The Wall Street Journal reports, the studios want a higher price and Apple wants a lower one. That is: This is the same fight Apple continually has with its media partners, whether it’s music, books or TV channels.

But the bigger story for Apple is that this used to be a fight that Apple would ultimately win, because Apple was the dominant player in digital media. That’s not true anymore.

Apple has played from behind plenty of times. This is another example of that. But, as Peter points out, this is a much more crowded playing field and the model Apple brings to the table is already commoditized. Amazon, Google, et al, already do streaming, 4K is more of a wrinkle in an existing model than a new twist.

Supposedly, the 4K pricing is still not in agreement. It’ll be one of many things to watch for on September 12th.



17 thoughts on “Apple’s TV plans still stuck in neutral”

  1. I don’t know that I agree with the supposition that Apple is no longer the dominant player in digital media. They may not be the only player, but they’re still the top dog.

  2. I think they would have a much better shot at getting a lower price if every other player wasn’t offering 4k at higher prices already. If they were first out of the gate they might have had a shot but here they are basically last to the 4k game and the market has already been set. I’m not saying it’s impossible but I think its more likely than not they will need to sell at the higher prices.

  3. Too bad the media players don’t trust Apple more than they appear to. They would do well to partner with them on this and other innovations coming down the pipe. I truly hope Apple’s content division eats their lunch, but I’m not holding my breath on this. Poaching a bunch of Sony execs doesn’t necessarily manufacture success.

  4. They might be #1 in music, but they are obviously nowhere near #1 in video.

    They’re irrelevant in the original content, one of many options in distribution (and way behind netflix), and one of several choices in hardware.

    The new AppleTV was pretty nice when released, but now is overpriced and underfeatured. Roku apparently outsells it by volume, and a lot of smart TVs already provide a good enough experience at no extra charge.

  5. By all means, tell me who sells (not streaming, this is about selling digital copies of 4k movies) more digital content?

    You’re confusing video streaming services (Netflix, HBO Now, Amazon Instant) with selling digital media. It’s why iTunes is separate from Apple Music.

    Sorry, I’m already tired of the argument that Apple is a failure in the streaming space because they don’t make hit TV shows. I personally don’t think Apple has any interest in being Netflix or HBO, but we’ll see.

  6. I’m not “confusing” streaming with sales – its an irrelevant distinction when discussing the “dominant player in digital media”. Obviously, people spend way more time watching content provided by Netflix than Apple.

    Apple brings nothing special to the table in video, and thus they are not the dominant player in digital media. They have no original content to speak of, their hardware is decent but not a standout, and consumers can get the stuff they sell/rent from at least a half dozen other outlets.

  7. I agree. Original content is great for television, but I think movies are what Apple is aiming for. There, Apple is on an even playing field with everyone else, just trying to make the best deal.

    The difference between Apple and everyone else is that Apple has multiple and varied platforms to grow on. Most of the competitors are tied to platforms they do not control.

  8. If there 4K films aren’t available to buy on day one. People will just get them elsewhere. And I’m sure they’ll be happy to get 100% of bugger all.

  9. You’re way off base when you say Apple has nothing special to offer. Perhaps you consider the iPad, iPhone, lineup of Macs, and the Apple TV nothing special, but by and large customers disagree. Check the viewer numbers from some of the streaming services to see just how much of their content is consumed on Apple devices (it’s significantly larger than any other companies devices). They also maintain the single largest collection of customer credit card data tied to digital content in the world.

    Apple doesn’t do a video streaming service, so the distinction is relevant when negotiating with studios on the price of new release 4k movies for sale. That’s not content that’s even available to the other players, as Netflix has mostly forgone movies (rarely can find a major movie to stream, release dates very late when they finally arrive) with focus on television content. Sorry, but it’s not all the same thing.

    The studio may take your approach and consider Apple no longer relevant in the digital media space. I think they’d be ill advised to do so, but we’ll see.

  10. Further, let’s dispense with the notion that original content is some unreachable goal for Apple. If they wanted to, they could be right there with Amazon tomorrow. Amazon and Netflix aren’t studios producing this stuff in house with their own talent. They’re simply outbidding networks and studios for good content (some big hits and a few misses) to own distribution. Apple has more money than both of them combined. If this was a pond they were set on playing in, they could make a huge splash tomorrow.

  11. In a year I don’t think I would watch more than 10 new movies, either in theaters or at home. I don’t care for getting it on the day it becomes available, and I watch so few of them I don’t even bother to figure out which VPN’s I need to pay off to pirate, and just buy the discs or movie tickets when I find time.

    Netflix doesn’t appeal to me, since I won’t have to pay much more than their monthly fees in a year, to own everything that I really want to watch.

    How are the movie studios going to convince someone like me to pay extra for their digital copies of 4K movies, which looks to cost the same or more than 4K Blu-rays?

  12. Maybe they could do it, but they haven’t actually done it. They’re not the “dominant player in digital media” – not even close.

  13. This is one area that Apple really misses Steve Jobs. His negotiating skills paired with his RDF were far better than whoever was on the other end of the phone call.

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