As Foxtel struggle to hold onto subscribers it's been
revealed that Apple is building out a large scale 4K streaming network that
will be capable of delivering TV programs to an Apple TV as well as movies
music and education and documentary content to schools.
Sources in Europe have told me that Apple management believe
that the key to their TV strategy is content and that the Company is looking to
deliver several new devices that are capable of delivering unique content to
both consumers, and education networks.
The Wall Street Journal claims that Apple who since the
creation of their content network have relied on third-party content delivery
networks (CDNs) such as Akamai and Level3 to ensure reliable streaming of its
media content, is now building out its own content delivery network so that
users get high level content over an Apple owned network as opposed to third
An Apple source in Italy told me that senior Apple
management in the USA believe that they can gain an edge over Samsung Sony and
LG in the TV market by delivering "smart display devices" that have
access to a vast library of Apple content. I have also been told that Apple is
researching the development of their own content with third party production
Companies similar to what Netflix is currently doing in the USA and Europe.
The new content network could be part of a larger plan to
expand existing Apple TV services to accommodate TV over IP.
Other sources have told the Wall Street Journal that Apple has
"intense interest" in expanding existing television infrastructure and the
overall experience for consumers and education departments looking to use
content to educate students.
Apple's iCloud service and having more control over its own
delivery, and Apple TV services could also be behind the in-house CDN build-up.
Apple has also made recent hires in the area of television
and cable growth. Thus far, it has hired Lauren Provo (formerly part of
Comcast's Internet division) and Jean-Fran?ois Mul?, for VP of technology
development at CableLabs. Mul? is now an "engineering director" at
Experts in CDN management say that Apple is signing
long-term deals for bandwidth and networking expertise, with one authority
quoted by the Journal saying that Apple has bought enough bandwidth from web
carriers to stream "hundreds of gigabits of data per second" -- far
more than it presently has need of.
In Australia Apple recently held talks with Telstra and
Optus as well as some third party broadband providers according to a former
The problem for Telstra is that Apple is a major competitor
to the carrier due to their 50% shareholding in Foxtel and the expansion of the
Telstra T Box network.