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Apple Should Acquire MLBAM If It Wants Apple TV To Work

March 08, 2015

MLBAM has recently expressed interest in a sale, and Apple has partnered with them numerous times for product launches, which provides a groundwork to build upon. This acquisition would position Apple as not just a streaming device maker, but as a first-class infrastructure provider. Apple would be able to offer a complete package (infrastructure and distribution) for publishers that want to launch subscription services, and would be able to leverage this advantage to give Apple TV a superior content lineup.

Apple TV currently sits on the high-end of a growing market (streaming media devices), but has yet to establish itself as the clear market leader. Competitors such as Roku, Google (NASDAQ:GOOG) (NASDAQ:GOOGL) Chromecast, and the Amazon.com (NASDAQ:AMZN) Fire Stick have all gained ground on Apple over the course of 2014. This recent chart from research firm Parks Associates shows the general marketshare trends for streaming media devices over the past three years.

Apple TV's drop from 2013-2014 is likely due to increased competition from Google Chromecast and Amazon Fire TV, along with the lack of updates or significant content deals. Although Apple TV is now priced at just $69 (making it one of Apple's few products in the impulse-buy range), it still represents a premium offering. The Google Chromecast retails for just $35, the Amazon Fire TV Stick is $39, and the Roku offers models starting at $49.99.

From the article "Apple Should Acquire MLBAM If It Wants Apple TV To Work" by Cameron Graham.

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