According to a new Piper Jaffray note this week, analyst Gene Munster says he expects Apple to eventually get into the HDTV market providing a full home entertainment system alongside the Apple TV media device.
Additionally, Munster says that a new, updated Apple TV is coming before Christmas, including DVR and a monthly sub to iTunes TV shows.
“We believe Apple is exploring a subscription-based offering for its TV content in iTunes,” says Munster, via The Street. “Apple could leverage its deep library of content with many network and cable channel content owners to provide unlimited access to a sub-library of its TV shows for a standard monthly fee.”
Adds Apple COO Tim Cook of the Apple TV:
“It is clear that the movie rental business has really helped Apple TV and there are more and more customers that want to try it,” he says, noting that sales were up 300 percent year-on-year. “We’re going to continue to invest in it, because we fundamentally believe there is something there for us in the future.”
As for the HDTV, Munster expects a 2011 debut, and the completion of a full Apple home entertainment center.
“The device would push Apple further into the digital living room with interactive TV, music, movie, and gaming features,” he added. “Such a device would command a premium among a competitive field of budget TVs.”
Result for: rental business
In 2002, the retail giant Wal-Mart decided to launch an online DVD rental business, in an effort to rival Netflix. However, Netflix did what it has to all its other competition and practically drove the startup out of business.
By 2005 Wal-Mart decided it was a waste of money and let Netflix take over its DVD rental operation while Netflix would promote Wal-Mart’s in-store DVD movie sales.
This decision led to a class action lawsuit early last month as the companies were accused of “conspiring to create a monopoly for online video rentals.” The “collusion” between the companies led to higher prices for Netflix customers, alleged the suit.
This week, the companies find themselves facing a new class-action lawsuit of the same type, this time from a plaintiff in Chicago.
As proof that the deal in 2005 promoted “unfair trade”, the plaintiff notes that Netflix raised its average subscription price from $14.99 to $17.99 USD almost immediately after the agreement with Wal-Mart. At the time, Wal-Mart’s comparable monthly plan was $12.97 USD.
“The subscription fees charged by Netflix to Plaintiff, as well as the other members of the Class, were maintained at artificially high levels,” states the suit. “Plaintiff and the other members of the Class paid higher subscription prices to Netflix than they otherwise would have paid.”
Result for: rental business
In 2002, the retail giant Wal-Mart decided to launch an online DVD rental business, in an effort to rival Netflix. However, Netflix did what it has to all its other competition and practically drove the startup out of business.
By 2005 Wal-Mart decided it was a waste of money and let Netflix take over its DVD rental operation while Netflix would promote Wal-Mart’s in-store DVD movie sales.
This week though, that decision is back in the news as a lawsuit has been filed against both companies accusing them of “conspiring to create a monopoly for online video rentals.” The “collusion” has led to higher prices for consumers, alleges the suit.
The deal between the companies also “enabled Netflix to maintain monopoly power and led Blockbuster Inc. to raise subscription rental prices by $3 to meet Netflix’s higher prices.”
