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."