Like I, and others, have postulated—Apple TV a hobby, my tushie it is. Tim Cook sees the big play is media distribution and if inklings (if we don’t use ink anymore are these diglings?) are correct, Apple might already be working with cable companies to see how much capacity might be needed for a new (and not the puck) Apple TV device.
Jefferies & Co.’s James Kisner is quoted on Barrons.com (as related to marking a stock a buy for ARRIS ) with this tantalizing bit of news:
Our discussions with industry contacts suggest that at least one major N. American MSO is working to estimate how much additional capacity may be needed for a new Apple device on their broadband data network. We believe this potentially suggests an imminent launch of the Apple TV, a positive development for ARRIS, who is directly exposed to data traffic growth from incremental IP video streams on cable networks
Who are ARRIS? Not a household name but any stretch, but they make gear for cable companies. Gear that transmits data. Ah ha you say.
It’s important to understand that network capacity is largely engineered to peak traffic levels – thus we’ve based our analysis on what peak data consumption might be based on 50% of Apple TV users watching an HD video stream all at once (this might realistically happen on a Friday or Saturday night). We then translate the incremental data usage to incremental port requirements (each port maps to roughly 40mbps of capacity).
So imagine more, better streaming programing via Apple. Maybe we’re not talking about a device at all, but a service that cable companies subscribe to themselves to offer more movies and shows on demand.
The holiday question will be, then, is the Apple TV puck a lame duck or the device that might help make it all happen? As someone who has been putting off getting an Apple TV, that is something I want to know!