There is no longer doubt that Apple Inc (NASDAQ:AAPL) is working on a streaming TV service, although nobody knows exactly when that product will come to market. However, analysts are already citing where Apple’s future in TV service business really is – experience. Apple is well-situated to take advantage of the hate that people already have for cable companies and turn into a lucrative business opportunity.
Pacific Crest Securities is the latest to weigh in on the Apple streaming TV speculations. The investment banking firm has published a new report that predicts how Apple could spoil the party for Comcast Corporation (NASDAQ:CMCSA), Time Warner Cable Inc (NYSE:TWC) and other pay-TV providers.
Playing on user experience
According to the report, Apple Inc (NASDAQ:AAPL) can take advantage of the current pathetic television viewing experience so that it makes things better. By doing that, Apple can keep the cost of its TV services almost at the same level of cable TV service or higher, but still draw users to its side.
Viewer frustrations
Currently, many Americans are fed up with their cable TV providers, what with contracts that lock you in and confusing user interfaces. The other issues are exorbitantly high cost of rending equipment and fact that you can watch everything you want on the go like on your smartphone or tablet. Add to that pain the awful customer service and you get a clearer picture why many people are ready to cut the cord.
Apple Inc (NASDAQ:AAPL) is well-known for its ability to make complicated technologies and products simple and that can be seen all the way from iPhones to its mobile payment service called Apple Pay that prides its self of great usability. It can bring that to TV and make a whole world of difference.
Cost doesn’t matter as much
Pacific Crest Securities noted in a report that even if Apple Inc (NASDAQ:AAPL) were to price its TV service in the range of $40 to $50 per month, which could bring the overall cost to the same level as cable package, many people would still choose it on the basis of simplicity.
