View this article at: http://dev.macnn.com/articles/05/11/08/stiff.competition.in.2006 Tuesday, Nov 08, 2005 12:35pm iTunes faces competition in... Goldman Sachs says that Apple could face stiff competition in the digital video market 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."