Pacific Crest: Apple may rethink Internet TV service or something

“Dish Network has not hit a home run with its new Sling Web TV service, and Apple might not step up to the plate despite rampant speculation that it’s close to entering the game, says Pacific Crest Securities,” Reinhardt Krause reports for Investor’s Business Daily. “In a research report reviewing media and entertainment company Q3 earnings, analyst Andy Hargreaves sees upside for Netflix, despite management comments that media firms might license more content to its rival, such as Hulu, or launch their own direct-to-consumer streaming products.”

“Some analysts have interpreted Q3 earnings calls comments by CBS and 21st Century Fox as signs that an Apple Web TV service is still in the works, but Hargreaves is cautious,” Krause reports. “‘We continue to believe an Apple-branded service with a heavy focus on on-demand is likely. But odds may be increasing that Apple has decided the opportunity is not worth the effort,’ wrote Hargreaves.”

Krause reports, “The Pacific Crest analysts noted Apple CEO Tim Cook’s remarks on Oct. 19. Linear TV ‘”has outlived its usefulness … it’s time to lose sight of the shore and move on with it,’ Cook said.”

Read more in the full article here.

MacDailyNews Take: In January 2013, Pacific Crest Securities’ analyst Andy Hargreaves stated in a note that the high-end market for smartphones would be saturated sooner than expected which would lead to poor growth for Apple as demand for “incremental hardware improvements” was waning and he didn’t believe people would continue to upgrade to new iPhones.

In short, Andy Hargreaves couldn’t analyze his way out of a wet paper bag.

UBS analyst’s latest ‘research’ note on Apple is just another ‘actionable’ note and should be totally ignored – November 16, 2015
Apple shares continue to get slammed on commission/bonus related ‘actionable research’ – November 10, 2015


    1. There already is a solution, but you may not like it.

      What Apple did with the Apple TV 4 is open it up so that every “channel” can have its own app. You then buy the app, or subscribe through the app. Apple gets its percentage.

      The “channels” with the deeper pockets launch apps sooner and cost more… see HBO. The crap channels won’t have resources to launch right away and many will disappear.

      There will be “channel aggregators” like Hulu and Netflix. Others will likely launch.

      Eventually the concept of a channel goes away. Networks/studios will have their own apps and distribute their content through aggregator apps like Hulu and Netflix.

      Don’t be surprised if Comcast itself becomes an app (actually it already has subsidiary apps).

      Instead of being upset that you’re paying for channels you never watch, you’re going to be upset that you’re paying for shows you never watch.

      The average person isn’t going to pay less.

      Expect more “tent-pole-television”, especially early on.

      Expect more interaction and engagement when watching TV.

      Expect disruption. Any studio can make an app or convert an app template and release shows that no network would pick up. These may be controversial or have other risks. For every so many losers, there will be 1 big winner that suddenly puts that studios app on people’s devices.

      Expect consolidation. There are too many channels today. While indie studios can pop up with a big hit, they can’t stay on your home screen without followups. Some apps won’t have enough popular content to stand on their own and mergers are likely.

  1. How does he stay in work, an embarrassing prediction back in 13 so off kilter he should have sunk without trace and now follows that up with a totally confused follow up effort now which is completely counter intuitive to any sense of reality.

    1. Yup, just keep on with that tried-and-true technology.

      BTW, I’ve got some Railway Express (REA) stock that I can let you have cheap, as well as several cases of Polaroid cameras and Sony Walkman units.

  2. I have to say I’m very interested by Sky Q which was announced today. A main box with multiple tuners which you can connect satellite boxes to and stream your content around the house plus to mobile devices. If the software is even remotely usable (which it should be as sky boxes aren’t bad as is) it could be very good. Like it or not, traditional broadcast has a lot of material that the internet cannot yet offer (mostly sport) and being able to record and watch multiple things via a satellite broadcast is much more realistic for most people than trying to use an internet connection.

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