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Enderle Group president Rob Enderle on whether Apple will be able to strike a deal with cable operators.
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Thank you thank you.
Apple's next front tier cable TV -- the tech giant is currently in talks with some of the biggest US cable companies.
To let consumers use apple.
Set top boxes and place of the ones that they already have.
Will cable operators however shouted out rob and nearly as president of the -- -- joining us now from Mountain View California.
Why would -- cable companies at this point get -- to bet with apple rob.
Well that's to -- that's exactly the question that they really have no reason to do it.
They like the fact that customers are locked the end.
I it's very hard for customers to changes to that gives the cable companies and annuity in the what advantage people kind of thought they might have was.
Well if you're gonna buy your own cable set top box that ITV from apple.
Then the -- the cable companies don't have to pay for that piece of hardware but that hardware is well worth the lock in they have but the cut with the consumer.
As long as you've got that cable box.
You're not gonna go any place else or so they believe.
Right.
And target them rather than basically kind of going -- -- school written trying to cut a deal with the cable companies themselves.
By the kind of providers have -- lot better remember some of the content providers like Time Warner.
US.
With some of them wanting to support their own because since system in infrastructure and also a lot of the deals the cable companies strike -- relatively exclusive.
For what it is they do so that the quagmire of content ownership.
A lot of folks have Bob crashed on those shores you know who -- struggle -- -- even though they originally funded by content owners.
Netflix one of the better providers is clearly had a horrible time getting access to even old television shows.
Amazon's played in here and and if you look across all of them.
I even to -- they don't have the same kind of portfolio products that one cable company can provide and that's largely because this game is rigged.
The cable companies on the game and they don't want anybody else -- the table.
-- apple instead of going to set top box rates is there's the possibility out there that apple would just make a television set.
And then -- have all of that you know and it it gives you that.
Interface and that's it may be an easier.
On argument to make to get people to buy a product like that.
Well Smart TVs have been coming to market for awhile what Netflix built it and or Amazon built -- -- Hulu built in a mine's got all about.
That the the difficulty still remains the content apple certainly been rumored bringing out there on television but it really doesn't matter where you put the technology if you can't get license for the content to -- the same kind of problem Netflix had a while back.
Where they get all this access told television shows and then -- contract dispute happened and they lost all that access to television shows what that'll hold.
-- -- -- The easy to cable companies don't don't really have those problems on a regular basis.
They maintain access to get current continental count that they got a portfolio that and TV set top box makers.
Would just loved to have access to but can't get to it it's it does kind of suggest the government needs to open up the market other people play.
The problem is is typically when the government steps into a market like this says they want to help.
Everybody else runs for the hills because the health.
What more could -- to big government that's a lot hey rob thanks some might -- and nearly on apple.
And television and coming up later in -- we're gonna talk about Facebook fall Mac's shares are trading -- what exactly twenty dollars -- she.
