Apple to Contribute to the 'Breakdown of the Cable Bundle' in a Variety of Ways

Apple to Contribute to the 'Breakdown of the Cable Bundle' in a Variety of Ways

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Apple CEO Tim Cook says the company will contribute to the 'breakdown of the cable bundle' this year.

During the company's fiscal Q1 2019 earnings call today, Cook was asked how Apple views the opportunity in video.

Here's his response...

We see huge changes in customer behavior taking place now and we think that it will accelerate as the year goes by to sort of the breakdown of the cable bundle that's been talked about for years and I think that it'll likely take place at a much faster pace this year. And so we're going to participate in that in a variety of ways.

One of those is through Apple TV and you're well familiar with that product.

The second way is AirPlay 2 which we have as you just pointed out, we have support on a number of different third party TVs and we're excited about that. It makes the experience in the living room with the people using our products even better. We think that people are really going to like that.

Another way is, of course, all the third-party video subscriptions that are on the store. We're participating in this today and I would guess that that's going to accelerate into the future as the bundle breaks down and people begin to buy likely multiple services in place of their current cable bundle.

And then finally original content. We will participate in the original content world. We have signed a multi-year partnership with Oprah. But today I'm not really ready to extend that conversation beyond that point. We've hired some great people that I have super amount of confidence in and they're working really hard and we'll have something to say more on that later.

Cook is likely referring to executives Zack Van Amburg and Jamie Erlicht Apple poached from Sony in June 2017. The pair has reportedly been given $1 billion to procure and create original content for a streaming video service that will launch later this year.

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Apple to Contribute to the 'Breakdown of the Cable Bundle' in a Variety of Ways