updated 02:30 pm EDT, Wed March 23, 2011
Move could marginalize Apple TV
Apple is reportedly considering changes to its AirPlay standard, which may be updated with support for video streaming. Unnamed sources familiar with the matter have told Bloomberg the company would continue to expand licensing agreements with hardware manufacturers, who would be able to take advantage of streaming movies, TV shows or other videos.
It remains unclear if such a move would eventually marginalize the company's Apple TV set-top box, which serves as a hardware solution linking video- and audio-based content to hardware via HDMI and other physical connections. Although the device has been updated with new features, the second-generation model moved away from integrated storage and relies more heavily on streaming content.
If the reports are accurate, the strategy shift is expected to help bolster video sales through Apple's own iTunes store. Company's also pay $4 per AirPlay-supported device sold, though it remains unclear if the video expansion will equate to a jump in licensing fees.