Apple Live TV: Promising Source of Customer Stickiness

Our bullish investment thesis for

Media content negotiations have likely held up an Apple Live TV service in recent years as we suspect content owners have preferred to move slowly to date, favoring owned firms (like Hulu) and traditional TV distributors (Dish, DirecTV). Hulu (now owned by four major media providers) could be particularly well positioned to emerge as a leading cross-platform service. However, we think that content providers want as broad a distribution as possible, which will eventually allow an Apple TV service to come to market. Compared with competing offerings, we don’t expect Apple to garner differentiation via unique content rights, but we do expect the firm to have a few advantages in Live TV.

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