Re-posting an article posted on Seeking Alpha in May.
Update: The Wall St. Journal reported today that Apple is in discussions with major cable companies about letting consumers use Apple TV to deliver cable content, not just Internet content. It’s an interesting play by Apple. Delivering cable content and internet content side by side would certainly provide the best user experience, and would be in Apple’s best interest, but I didn’t analyze it simply because I don’t think the cable companies will ever go for it. I figured they’d just dig in and play defense to try and protect their economic fortress. In fact, that’s still my prediction. Why would cable companies hasten their own demise by giving Apple an easy presence in their users’ households?
But if a few cable providers do partner with Apple, they’re either reckless, or they have a plan for how they will capitalize on Apple TV. It will be interesting to revisit this issue when some agreements are in place and we can determine if the cable companies have foresight or foolishness.