Uncertain Future of Apple's Television Venture
History of Apple Television Rumors
Back in 2011, Piper Jaffray analyst Gene Munster firmly believed that an Apple television was not only in the making but was about to be launched. Since then, we have been closely monitoring Munster's predictions that Apple would introduce a television set either "this year" or "within a year." These predictions were repeated in subsequent years, including 2012, 2013, and 2014. However, in 2015, he finally changed his mind. Although it seemed logical in the early days, with Munster and a few others being so confident, it became increasingly difficult to envision how this could be feasible today.
Large-screen, high-spec TVs have become common nowadays. Take a look at the best-selling TV sets at Best Buy. The number one model is the 65-inch Sony Bravia 3 LED 4K with HDR, Dolby Vision, Dolby Atmos, 4K upscaling from HD content, and various image-processing technologies for both movies and games. It costs $650. Next is a 75-inch Samsung model with 4K resolution, HDR, upscaling, motion-processing, and color-processing. It costs $550. The third in line is a 50-inch Samsung with similar specifications, priced at $250.
Challenges for Apple in the TV Market
While the presence of cheaper models has never deterred Apple from pursuing its goals in other product categories, the TV market is different. In other areas where the company operates, there are significant spec differences between Apple products and low-end ones. However, in TV, one can obtain truly impressive specs in large sizes for prices that seem unreasonable for Apple.
Sure, there are high-end models available. Samsung offers a 114-inch microLED model for a whopping $150,000 as a special order and a $20k 85-inch model that is more or less readily available. But the reality is that almost anyone who desires a high-spec TV can buy one for under a thousand dollars, and the brands selling them make only a small profit on most models. Televisions are a low-margin business.
Potential for Apple in the TV Market
It is not impossible for Apple to launch a high-priced TV with its usual 37%-ish margin. It could enter the territory of Bang & Olufsen. But it is likely that it would sell premium TVs in even smaller volumes than the Vision Pro. The Vision Pro makes sense for Apple not because it is generating immediate profits but because it gives the company a foothold in an emerging market with significant future growth potential. This potential may materialize in three years, five years, or even ten years - it is difficult to predict. However, it is not unreasonable for Apple to believe that it will take off at some point and that it is establishing a stake in anticipation of that time.
In contrast, an Apple television has no long-term potential for significant future growth. Admittedly, the author, who hasn't owned a television for over 20 years, might not be the best person to ask. But if they were to buy a TV, they would prefer a simple dumb screen (or a smart TV with apps they never use) along with an Apple TV box. This is the model that Apple has been following for years. Buy any TV and convert it into an Apple one by paying $129 or $149. When the smart features become outdated, instead of replacing the entire screen, just buy another cheap Apple box. The author doesn't expect this model to change. Please take our poll and share your thoughts in the comments.
Why the Choice of Nielsen?
The freshly signed agreement with American Spirit Media, founded by Thomas B. Henson in Charlotte, makes Nielsen its lone supplier of audience measurement, data, and analytics for its collection of broadcast TV stations. All of American Spirit’s TV properties enjoy shared services agreements. One such agreement is with TEGNA, and it involves WUPW “FOX36” in Toledo. The remaining five properties are operated via a shared services agreement with Gray, including WXTX “FOX54” in Columbus, Ga.; WSFX-TV in Wilmington, N.C.; WDBD-40 in Jackson, Miss.; KVHP-29 in Lake Charles, La.; and KAUZ-6 in Wichita Falls, Tex.This new agreement with the six stations also includes an “expanded set” of Nielsen Local TV products, such as Ad Intel, which is Nielsen’s Local media advertising aid. As President/CEO of the company, Thomas B. Henson expressed his satisfaction, stating, “American Spirit Media is pleased to use Nielsen’s industry-trusted Local TV ratings and ad intelligence to power our content and advertising strategies across all of our markets. In an increasingly fragmented environment, having the right measurement partner is essential in order to make meaningful decisions and optimize successful strategies for our stations and our advertisers in the years to come.”The Importance of Local TV Measurement
Local TV measurement plays a crucial role in the success of broadcast television stations. It provides valuable insights into audience behavior, preferences, and viewing patterns. With the help of Nielsen’s Local TV ratings and ad intelligence, stations like American Spirit Media can better understand their viewers and tailor their content and advertising strategies accordingly. This leads to more targeted advertising campaigns and increased viewer engagement.For example, by analyzing the data provided by Nielsen, stations can identify the most popular shows and time slots, allowing them to schedule their programming more effectively. They can also gain insights into the demographics and interests of their viewers, enabling them to attract more relevant advertisers. Moreover, the expanded set of Nielsen Local TV products, such as Ad Intel, offers additional tools for stations to optimize their advertising strategies and measure the effectiveness of their campaigns.The Impact on Advertising
The partnership between American Spirit Media and Nielsen also has significant implications for advertising. In an increasingly competitive advertising landscape, having accurate and reliable measurement data is essential for advertisers to make informed decisions about where to allocate their budgets. With Nielsen’s Local TV ratings and ad intelligence, advertisers can gain a better understanding of the reach and impact of their ads on local TV audiences.This allows advertisers to target their campaigns more precisely and measure the return on investment (ROI) of their advertising efforts. For instance, advertisers can use Nielsen’s data to identify the stations and time slots with the highest viewership among their target demographics. They can then focus their advertising efforts on these specific areas, increasing the likelihood of reaching their intended audience and achieving better results.Furthermore, the innovation and investment required to measure the dynamic Local TV landscape remain central to Nielsen’s mission. With partners like American Spirit Media, Nielsen is able to continue to develop and improve its measurement tools and services, providing even more value to both stations and advertisers.The Future of Local TV
The renewed and expanded services agreement between American Spirit Media and Nielsen signals a positive outlook for the future of local TV. As the media landscape continues to evolve and become more fragmented, having a reliable measurement partner like Nielsen is crucial for stations to stay competitive and make informed decisions.With the right measurement data, stations can adapt their strategies to meet the changing needs and preferences of their viewers. They can explore new content formats and distribution channels, while also optimizing their advertising partnerships. This will help them to attract more viewers and advertisers, and ultimately drive revenue growth.In conclusion, the partnership between American Spirit Media and Nielsen represents a significant milestone in the local TV industry. It provides stations with the tools and insights they need to succeed in an increasingly competitive environment, while also offering advertisers a more targeted and effective advertising platform. As the industry continues to evolve, it will be interesting to see how this partnership shapes the future of local TV.