Apple's Eddy Cue Suggests Apple Television Unlikely in Near-Term

Fortune reports on a new analyst report published by Pacific Crest's Andy Hargreaves. The report was written after a meeting on Wednesday with Apple's Peter Oppenheimer and Eddy Cue, Apple Senior Vice President for Internet services and software.

apple tv 2012 interface
Hargreaves' interpretation of that meeting was that an Apple television would be "extremely unlikely" in the near term. Hargreaves writes:

Relative to the television market, Eddy Cue, Apple SVP of Internet Software and Services, reiterated the company's mantra that it will enter markets where it feels it can create great customer experiences and address key problems. The key problems in the television market are the poor quality of the user interface and the forced bundling of pay TV content, in our view. While Apple could almost certainly create a better user interface, Mr. Cue's commentary suggested that this would be an incomplete solution from Apple's perspective unless it could deliver content in a way that is different from the current multichannel pay TV model.

As pointed out by Fortune's Philip Elmer-DeWitt, SEC rules prohibit sharing insider information that might have material affect on the company's stock, so Hargreaves' interpretation is just that - his interpretation of Apple's comments about delivering a "great customer experience and addressing key problems."

Apple has been rumored to be entering the television market for some time. The most recent rumors, however, have suggested that Apple is still deep in negotiations for content for their television services.

Related Roundups: Apple TV, tvOS 14
Buyer's Guide: Apple TV (Don't Buy)

Top Rated Comments

abhishake Avatar
110 months ago
The UI is already taken care of with the Apple TV.. Why make a TV for that.
Score: 7 Votes (Like | Disagree)
d0vr Avatar
110 months ago
No surprises here. Siri certainly wouldn't be 'cracking' the answer to any major concerns I have with how I currently use televisions.
Score: 5 Votes (Like | Disagree)
HobeSoundDarryl Avatar
110 months ago

I actually don't understand how/if the networks could lose $$ on a Cable-iTunes system. I know I would buy a share of Channels/shows. Wouldn't people like me surely help pick up profits? Its got to be the providers (TW/Comcast/etc.) holding the gun. "sign with them, and we're done"

It works like this: in a model where it's just the artists (those who create the content), Apple and us, someone has to make up the difference made in the model "as is". It's not just our individual subscription dollars. The model "as is" has lots of OPM (other people's money) flowing. In the artists-apple-us model, lots of that OPM flow is at risk. For example, commercials that run on all those channels "we never watch" yield revenues that doesn't come out of our pockets. A fair amount of that revenue flows to the artists that make the stuff we do watch. Kill off those channels we don't watch and we kill off that OPM money that helps pay for what we do watch. Then, either we or Apple would have to make up for that lost revenue when there's only us and Apple in the new model. Recognize that if it comes down to us or Apple coughing up the difference, only 1 of those two will actually be on the hook. Guess who. If we don't make up the difference, then the money evaporates that pays for the creation of the stuff we want to watch.

Similarly, Apple's replacement model generally depends on a broadband pipe owned by someone who is in the video subscription business too. They like their video subscription revenues "as is". But, if Apple is going to take that business from them, they'll be obligated to make up for those losses in some other way. What way? Raising the cost of broadband. Thus, even if we could save some money in the new model al-a-carte (setting aside the OPM subsidies that help pay for our entertainment now), the big communications companies through which Apple's replacement solution must flow will not just roll over and take the hit. Our broadband costs would simply rise... justified with phrases like "for heavier bandwidth users" (sound familiar?).

Too many are dreaming of al-a-carte with fuzzy math. It's not $100 for 200 channels = 50 cents a channel. I like 10 channels, so my bill should be cut to $5/month. You can't hit an industry with a 95% reduction in revenues and expect it to continue to crank out the same quality of output that is generates now. Al-a-carte actually implemented would be 200 channel bundles for $100/month or 10 channels al-a-carte for at least a $100/month. None of the players beyond us have any goals of minimizing our out-of-pocket. All of them share Apple's goal- to make as much money as they can. The artists and the middlemen want to make more money this year than last... and more next year than this year. There is no win in supporting any solution that thoroughly cuts their revenues by 90% or more... except for us dreamers who believe that can somehow work.

Too many others dream of al-a-carte (with the fuzzy math) and commercial-free. To make up for the OPM that flows through the existing model (without coming out of our pockets) it would cost each household about $54/month. If there's no commercials in the dream and no channels "I never watch" running commercials I'll never see, that OPM evaporates. In an artists-Apple-us replacement model, somebody- either Apple or us- needs to make up for that $54/month loss of revenue from those commercials not being purchased... OR the quality and volume of programming will significantly fall.

The full dream is us paying relatively nothing for anything we want commercial free... for Apple to pull this off so that Apple can get it's big cut of the profits (but where is that big cut of profits if we are paying next to nothing?)... and somehow this new model will still yield the money to pay the artists to make all of the shows and films- including gambling on brand new shows and films- that we watch. It's just a very naive dream.

For some big model replacement to come to pass means coming up with the (non-fuzzy) math that shows all involved how they are going to make more money than the current model. That math can't work with us paying 90% less in the dream.
Score: 4 Votes (Like | Disagree)
OldSchoolMacGuy Avatar
110 months ago

I understand that logic. Too often Apple has released products too soon, before they make them really special. I think a perfect apple TV is worth waiting for, especially considering its anticipated price. And honestly, I won't buy it for the interface alone. I have an AppleTV already for that. I want the content. Thats what will make it great and its worth the wait!


Wat? That's Apple's biggest draw. They didn't invent the smartphone but when they did release one, they did it right. Same for the MP3 player and the tablet. Much like Ford didn't invent the car nor did Google the search engine but they did it in a way that was better than everyone else at the time.
Score: 4 Votes (Like | Disagree)
george-brooks Avatar
110 months ago



EDIT: Also STILL on that same mockup?


Thats not a mockup, thats Apple's own image for the current AppleTV
Score: 4 Votes (Like | Disagree)
MacOSXAddict Avatar
110 months ago
No to an Apple Television but what about an Apple cable box?
Score: 4 Votes (Like | Disagree)

Top Stories

iphone 5s black slate

Images of Unreleased iPhone 5s in Black and Slate Shared Online

Sunday January 17, 2021 9:47 am PST by
Twitter user @DongleBookPro has today shared images of a prototype iPhone 5s in an unreleased Black and Slate color. The iPhone 5s was launched in September 2013. The device featured Touch ID, a 64-bit processor, and a True Tone LED flash for the first time. Other new features included a five-element lens with an f/2.2 aperture, a 15 percent larger camera sensor, Burst Mode, and Slo-Mo...
iP12 charge airpods feature 2

Hidden iPhone 12 Hardware Feature Could Still be Unlocked

Thursday January 14, 2021 2:51 am PST by
All iPhone 12 and iPhone 12 Pro models purportedly have a hidden reverse wireless charging feature, according to an FCC filing. The feature has not yet been activated, but could yet be unlocked for an upcoming Apple accessory. The FCC filing suggests that iPhone 12 models contain the hardware for Wireless Power Transfer (WPT) to accessories: In addition to being able to be charged by a...
Top Stories 43 Feature

Top Stories: MacBook Pro, iMac, Mac Pro, and iPhone Rumors, Best of CES 2021

Saturday January 16, 2021 6:00 am PST by
This week was sure a busy one in the Apple world, with a flurry of announcements out of CES early in the week followed by a rash of Mac- and iPhone-related rumors later in the week. The new rumors this week included details on updated MacBook Pro, iMac, and Mac Pro models, as well as a few other tidbits, so make sure to read on below to get caught up! Kuo: New MacBook Pro Models to...
macbook pro flexgate

Apple Extends 13-Inch MacBook Pro Backlight Repair Program

Sunday January 17, 2021 10:31 am PST by
Apple this week extended its worldwide 13-inch MacBook Pro Display Backlight Service Program, authorizing coverage for eligible notebooks for up to five years after the original purchase date or up to three years after the start date of the program, whichever is longer. The previous cutoff was four years after the original purchase date. Apple launched the program on May 21, 2019 after...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
google maps detailed street level e1611052089473

Google Maps Gains Enhanced Street-Level Detail in Four Major Cities

Tuesday January 19, 2021 2:34 am PST by
Google Maps has quietly been updated to include significantly more detailed street-level information in a handful of key cities around the world. Upon zooming in, Google's maps for Central London, Tokyo, San Francisco, and New York now benefit from shapes and widths that match the scale of roads more accurately. Meanwhile, enhanced graphical representations of sidewalks, crosswalks,...
16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
macbook pro screensaver table

Some M1 Macs Affected By Fast User Switching Screensaver Bug

Monday January 18, 2021 1:57 am PST by
A growing number of user reports online suggest some of Apple's M1 Mac models are susceptible to a Fast User Switching bug that spontaneously activates the screensaver and leaves the user unable to dismiss it. In macOS Big Sur, Fast User Switching allows users to quickly switch between user accounts without having to completely log out. Based on posts in the MacRumors forums, Apple...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
apple fitness plus burn bar

Fitness+ Subscribers Now Have Nearly 300 Workouts to Choose From

Monday January 18, 2021 3:24 am PST by
Apple on Monday added over two dozen new video workout sessions to Fitness+, continuing a recent trend of building out the catalog of its fledgling subscription service on a weekly basis. Fitness+ launched December 14, 2020, and is designed to help Apple Watch owners keep fit through a series of guided workouts that are available across multiple workout categories. As you follow along with...