Mark Cuban: AAPL/GOOG TV needs Apps (specifically, games)

October 25, 2010

Famed entrepreneur and blogger Mark Cuban points out what ANT pointed out long ago:

For any sort of internet to TV to take off its gonna need a trojan horse and apps are that horse (specifically casual games for Cuban)

The content deals from the networks will come later when the rise of apps has slightly decreased average hours of TV watching. APPL and GOOG need to conquer the living room and then negotiate from strength (i.e. 75-100mm units) with the networks and movie studios.

The only question is: WHY IS THIS TAKING SO LONG?
(answer: Apple and Google are worried that they may spread app developers too thin by adding a third distinct platform in addition to the phone and tablet platforms)

ANT thinks this is smart and the best way to go about this. When the apps hit your living room the content owners are going to be scrambling to keep ‘shows’ relevant vs. a deluge of farmville/twitter/fbook and new apps that haven’t been thought of yet.

Mark Cuban drilled down to the core of the issue. It’s all about boredom alleviation and peoples medicine of choice is beginning to shift.

The next thing to start thinking about is how profitablethis space would be for apple/goog.

Apple TV hardware is cheap and has low margins. Billions of apps downloaded barely generates a few percentage points of revenue on apples income statement. So the only way for this to be relevant financially is to build a scale video subscription and advertising business. Doing so necessitates deals with the content owners or a purchase of someone with those deals (i.e. Netflix – although this would be an imperfect solution given it’s deals are not comprehensive and it’s business is currency device agnostic).


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