tag:blogger.com,1999:blog-5984451426701094678.post5705856217232465914..comments2024-03-28T13:12:50.073-04:00Comments on Steve Allen's Blog: Apple takes on TVSteve Allenhttp://www.blogger.com/profile/10546186762363913670noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-5984451426701094678.post-45245536799760190502012-08-24T15:25:32.412-04:002012-08-24T15:25:32.412-04:00Watch what you want whenever you want... The stru...Watch what you want whenever you want... The struggles we watch DirectTV have with Viacom to agree on appropriate costs to air their channels, Time Warner with the NFL network, etc... there isn't enough differentiation between current television options out there to justify significant changes in spending (I don't care if you call your DVR "the hopper" it isn't worth $20 a month to me). The supply side of elasticity to a change in fees is very high it appears in the competitive landscape that exists today.<br /><br />But if consumers could watch what they wanted, when they wanted, integrate TV with their iPad, iPhone, computer and layer in apps to add another layer of value...that could not only drive a paradigm shift in the market for what people prefer, but it could make the elasticity of demand for apple TV relatively inelastic. $400 phones, $800 tablets, and computers that cost 2X the price of a comparable PC are continuing to dominate the market place. Apple will be able to afford to pay whatever it takes to have these channels available. This might even drive up the price for the current suppliers in the market, making their products even less desirable.<br /><br />Americans go to work, they sleep, they eat, and they watch TV. Using the 80/20 rule means that people should be willing to spend more money on TV if it adds significant value. If they get it right I think it will change the way we consume this product in general - even if it cost twice what typical TV options cost today.<br /><br />Don McIntoshnoreply@blogger.com