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Apple TV apps will revolutionise telly

TV apps will disrupt the cable industry just as much as Apple disrupted the music industry

The Apple TV will completely revolutionize the cable TV and TV advertising markets through TV apps.

These apps will disrupt the cable industry just as much as Apple disrupted the music industry, claims Seeking Alpha's Matt Chessen.

Cable providers will be big losers in this revolution. "They failed to innovate and they'll pay the consequences," writes Chessen

See also: Apple iTV release date, specs and rumours

Chessen argues that cable providers have missed an opportunity by insisting that users subscribe to cable packages. Users should be able to subscribe to channels on an individual basis, or even to purchase individual shows as desired, he suggests. In Chessen's view TV apps available through Apple could allow this.

"The new Apple TV will allow content producers to create apps which will be used to distribute content," he predicts.

Apple TV review

A user who wants to watch a specific show could download an app and sign up for a subscription, cutting out the middleman cable provider. "All of the revenue would be shifted from the cable provider to the content provider and Apple, and the cable provider would be reduced to a commodity provider of bandwidth for content delivered by apps over the internet," writes Chessen.

Chessen notes that selling TV apps will allow content providers to segment their customers more effectively as well as generate revenue from subscribers who want to watch an occasional program, but wouldn't subscribe to a cable-based package.

Following on from this segentation, Chessen notes that Apple's TV apps will "revolutionize TV advertising". Apple will be able to deliver customized advertisements based on the profile of the individual user.

As a result, Apple could end up controlling a large share of the TV advertising market, predicts Chessen.

Read the full report here.


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