iTunes faces competition in video market
updated 12:35 pm EST, Tue November 8, 2005
Stiff competition in 2006
Goldman Sachs says that Apple could face during 2006, as Viacom and General Electric have agreed to provide on-demand TV shows to cable and satellite companies--just hours after their premiers--for $1 each, half the price of videos on Apple's iTunes Music Store. David C. Bailey of Goldman Sachs reiterated an "in-line" rating for Apple, but said the ability to watch shows on a television (instead of a computer or iPod via iTunes) are strong indications that Apple will not be able to easily replicate its digital audio dominance in the digital video market, according to a report from Forbes.com. "We continue to view Apple as a positive trade into January based on investor sentiment, news flow, and strong earnings. However, Apple's longer-term ability to maintain its multiple is based on outsized iPod growth, its ability to lead in the evolution of the digital home, and ongoing Mac share gains--all of which face stronger headwinds in 2006."
Junior Member
Joined: Feb 2000
Maybe, maybe not
In order for any vendor to compete with iTunes video, it has to be accessible to the market. However, NBC has chosen to go with DirectTV. In so doing, it has excluded Dish Network, the other satellite providers, and all cable customers. CBS is going with Comcast. In so doing, it has excluded all satellite providers and every cable provider except Comcast. Both have decided to target home viewers to the exclusion of all other potential markets. NBC and CBS have snatched defeat from the jaws of any chance of victory.