Apple still has some lock-in for its iOS devices with exclusive apps, but as Android devices get more apps and become more popular.... Apple will definitely have to deal with being a niche player in a wider market (instead of its current dominant role in mobile devices).
I'm not sure content wars will really heat up in 2013, but it's definitely a battle that will be waged in the coming years....
I agree, and that's going to be a major challenge because as the iPhone becomes less the smartphone icon and likewise for the iPad (which both will become over time) then other players have more clout with the producers of content. Apple can't demand premiums and concessions as a second- or third-in-rank player.
Apple, so far, has been quite shrewd about using other people's content to help sell its hardware. The iPod was a huge hit... but it was dependent on music owned by all sorts of publishers. If Apple is going to get AppleTV going in a competitive way, it's going to have to deal with rightsholders for all kinds of video content. Apple already does this with iTunes, but to integrate it even further will be really tricky. Consumers want a DVR with access to both free and pay-for content, and AppleTV currently doesn't do free content that well. Amazon seems to be in a better position because it can charge users for Amazon prime shipping and then offer Amazon Videos for free.... Apple needs to find a subscription offering or some other service to offer that people will pay for and then throw in a subsidized video offering so that it can compete with OTA TV and Netflix and Hulu and Amazon and YouTube...
Good question on Apple, mhhfive! They present what I think is the core challenge for OTT video players who want to produce content. The challenge is that even with network TV commercials to help fund content, it's not easy to produce it. Given the much lower revenue streams associated with PPV or streaming-ad sponsorship, how do you make money with original content? The answer may come from Apple; they will either do something and thus prove it can work, or they may not even try, which will prove the smartest consumer player in the industry doesn't think it can EVER work.
Netflix is starting to create its own original shows (or remakes of older shows), so it's not just going to deliver content and pay royalties to content owners, it's becoming a content creator itself. Hulu is doing something similar, but Hulu is owned by some legacy content players, so its future is uncertain. Amazon and Google are also getting into the content creation game, so pretty soon we'll have a diverse field of content, but no unified way to view it all... I imagine some content will only be available on Android devices via Amazon/GooglePlay, and some content will only be available on iOS devices.. When will Apple get into the content creation market....?
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