Apple iTV held up by content deals, VP says

Apple "iTV" mockup
Santa may not bring an HDTV down the chimney this Christmas

Just about everyone believes Apple is working on its own television set, dubbed the Apple iTV, but you might want to scratch it off your Christmas list for this year.

A new report claims Eddy Cue, Apple's senior vice president of internet software and services, sat down with analysts on Wednesday, where the topic quickly turned to Apple's HD television ambitions.

After noting that Apple would have no problem building "a better user interface," Cue suggested the real problem is content delivery.

Incomplete solution

Pacific Crest analyst Andy Hargreaves issued a company update on Friday, describing "the poor quality of the user interface and the forced bundling of pay TV content" as key problems with the current television market.

Referring to a better UI as "an incomplete solution," Cue implied packaging content outside of the current cable and satellite channel bundle method would be "virtually impossible" in the near future.

"The content is owned by a relatively small group of companies that have little interest in alternative models for their most valuable content," Hargreaves added.

Cue reiterated the company would "enter markets where it feels it can create great customer experiences and address key problems," but for now it would appear Apple's HDTV ambitions are being held hostage by content providers.

Via CNNMoney

TOPICS