Apple Math

The addition of Hulu Plus to AppleTV is an interesting addition to what Tim Cook simply referred to a "hobby" during the last investor call. Especially considering when Apple has sold 4million units so far this year alone.

So what's next?

Imagine this: "Siri - Please play that episode of South Park where Eric Cartman wants to go to Stan's birthday party at Casa Bonita."

Apple is creating ecosystems and going where customers have been long underserved and there is significant demand for a better way. But while everyone is focused on mobile, I think there's quite a bit slight of hand ("...nothing to see here folks…just a $400million hobby…move right along...") going on with regard to Cable TV. I'll put it this way (click here for a larger version):

Screen Shot 2012 07 31 at 5 07 44 PM





IMO Apple is quickly and quietly going after Cable TV providers with better delivery methods, a la carte selection and on demand viewing. Don't be surprised as premium content creators begin signing agreements with Apple:  HBO, ESPN, Disney, BBC as well as other international creators (maybe even TVNZ - Shortland Street for everyone! :) 

AppleTV then quickly becomes a vastly improved distribution medium and of course they'll extract a modest toll in the process. And with a world wide revenue opportunity it'll mean $billions more for Apple - funded in part by the giant sucking sound as viewers cut the cable for broadcast TV and keep it for internet access only. Heck - for only two months cable TV cost ($50/month) you can buy an AppleTV. And the difference can fund subscriptions to Netflix, Hulu Plus and more.

Or imagine this: after NBC's mis-handling of the Olympic games, can an Olympics app for the AppleTV be very far behind?