Apple Inc. (NASDAQ:AAPL) fanboys have been waiting for the company to make a huge splash in TV technology ever since Steve Jobs said he cracked the problem more than half-a-decade ago.
It looks like they may have to wait a bit longer.
Apple offers the Apple TV as a standalone gadget serving as a delivery platform for apps, not subscription and over-the-air networks. But Apple suddenly shelved plans to make a 4K TV last year. Just what was AAPL going to do?
Apparently, it’s a TV guide, as Recode reports:
“Apple has started talking to TV programmers and other video companies about creating a digital TV guide that would work on both Apple TV boxes and other Apple devices, like iPhones.
The idea is to let users see what kind of programming is available in video apps made by the likes of HBO, Netflix and ESPN, without having to open up each app individually, and to play shows and movies with a single click.”
Is AAPL on to Something?
Before you cue up the sad trombone, consider that there’s a good argument for this disappointing, if defensible, strategy. As of now, consumers who access TV programming through an Apple TV box or competing gadget have to navigate through a constellation of apps, each of which has its own sign-in credentials. It’s annoying.
With AAPL’s plan, consumers would sign in once and then access apps with a single click. Additionally, users will be able to see all content available from various apps in a single place.
The idea is that AAPL would make the experience of watching TV via internet far more easy and convenient. This is not a bad idea. Here’s Recode again:
“[If] Apple’s guide became a popular way for people to access video, then Apple could have real power in the TV ecosystem — power it had in the music industry when it built the iTunes store in 2003, but doesn’t have now when it talks to networks and studios.”
Unfortunately for anyone holding Apple stock, Recode reports that TV industry executives are skeptical of the idea. They want to direct viewers to their apps in order to promote their programming.
Whether this takes off or not, this isn’t going to move the needle on AAPL stock. If the company desperately needs to follow up the iPhone with another game-changing idea, this doesn’t appear to be it.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.
