At this point, the old guard media has no reason to blow up its cush model of collecting fees from cable and satellite companies for subscribers. They control the pace of the metamorphosis to a world where we consume all of our content via an Internet connection and without the need for a traditional subscription. Because of big media's foothold on the most prime programming (live events, first-run TV, appointment viewing, etc.), it has no reason or incentive to blow up its own model before it feels the need. A gradual transition works much better. And it's exactly what we'll see.I think (and I hope) Apple understands that big media doesn't need to give it access to prime content (and break up its long-standing and lucrative model) to take advantage of its technological prowess. If Apple does a television set that blows up the now commoditized hardware category, it makes the cable/satellite experience better just as it did music, video and communication platforms with iPod, iPad and iPhone. From there, the big media conglomerates will oversee the transition to total IP delivery on their own time under their own terms using their own platforms. I can't see it happening any other way -- at least not on a mass scale. The longer Apple banged its head against wall in negotiations-to-nowhere with content companies, the more I think it realized this reality and shifted focus to something that looks more like what the Quartz article explains and less like a traditional cable offering delivered via the Internet. Think of it as a refreshed and slightly-upgraded (content-wise) Apple TV set top box morphed with a television consumers will pay a premium price for. We have seen the story go down this way with Apple several times before. Follow @rocco_thestreet -- Written by Rocco Pendola in Santa Monica, Calif.
Saving Apple From a Tragic Fall
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.