Apple to Team Up With TWC on Content Deal?

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Feb. 12 (Bloomberg) –- Boy Genius Report President & Editor-In-Chief Jonathan Geller and Bloomberg’s Cory Johnson discuss Apple’s plan for a new set-top box and a possible content deal with Time Warner Cable. They speak to Trish Regan and Alix Steel on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

What will it mean if i have been apple tv box linked to time warner?

What will it look like and how will it change my viewing experience?

It is similar to the device they have now in terms of the box itself.

If they have an agreement with the cable divider, you will look at the apple user interface.

You do not have to deal with the clunky dvr.

We will not have to deal with that anymore.

It will tie into the apple ecosystem.

You will able to set your iphone program wherever you are and you can watch all your devices -- on all your devices.

Everybody has been so focused on apple tv.

The fact that they are aligning with big bag cable companies themselves, how does it change the equation for when people might eventually cut the cord so to speak gekko it really is a game changer -- speak?

It really is a game changer.

The deals with the cable carriers have been long-term deals they have had.

If apple can somehow break into that, they have been trying for some time.

The apple software instead of the software they have been using, it is an interesting one.

At this point, the box has been a way to stream other types of content.

We have had one on there now.

And apple tv is an interesting product.

Apple thinks they have figured out a better way, to have cracked the tv code.

Cable providers have been very look reluctant to deal with apple because they look at what happened to the record industry and itunes and they do not want to give away their business to apple.

If they do not play ball, do they not run the risk of coming effectively obsolete?

It seems like you want to play the game.

How much will this cost?

That is the question.

If they are worried about people cutting the cord, the question to you is, how much can time warner cable ring out of apple in terms of content?

If you look at gaming consoles and where we are today, i am of the belief this is the last big gaming console lifecycle.

Xbox one and playstation for, they are big and expensive.

If you look at what apple will do with the tv box, it will probably not cost more than $199 area in the lifecycle of a console, seven years, apple could end up selling you three or four updates.

It is an interesting strategy that i think the company will probably go after.

Does time warner or any cable kumble -- company doing business with apple become like at&t and then the interface is what apple is responsible?

I am equating it to the iphone.

That is an interesting way to think about this.

You look at the relationship with the cable provider.

It is not just about watching hbo anymore or bloomberg television or whatever else.

It is also about getting data and the device it goes to star stood be more important.

The point about the games is exactly right.

Xbox one has a lot of the same features where it could operate as a set top box.

They do not have to do with the cable operator.

I've talked to executives on this point.

We have bolted and then we would love it if cable operators would let people control cable assets through their xbox, but we are not waiting to release a device to get those arrangements in place.

You could imagine time warner would offer the apple tv as an add-on for customers waiting to pay more for this is a man time warner might become a big customer of apple.

My question is if apple is going to put their time and money into the apple tv, what other products are they not going to put money into that investors were thinking about?

Class i do not know if that is a great way to put it.

Apple is always thinking of what new products categories they will have in the future.

We have a big category coming up.

I am not sure what they would be diverting money or spending into, but i would be very excited if apple did a tv -- an update.

You think about the money spent, $18 billion over the last four or five years, you have got to start to ask, when will that pay off?

You mentioned wearables.

A lot of talk about a watch.

We have heard a lot of talk about apple tv.

What else is on the horizon?

What about for the mobile payment system?

Is that something that might come to fruition soon?

With touch id, that is absolutely what will happen.

The fact you have fingerprints, one of the most secure ways of identifying yourself, your signature, so to speak, that is huge for apple.

500 million user accounts with active credit cards, the largest in the world.

For them to be able to snap their fingers is pretty trivial and we will definitely see that.

All the concerns with packing, given what happened to target recently, people are worried about having their information out there.

Perhaps, cory, if it is linked to your fingerprint, maybe people will feel more settled and protected?

Yes.

Apple is concerned about privacy and they still think of themselves as software.

If they were to strike these relationships, this has been so difficult.

One of the things not talked about when steve jobs pass was his ability to strike a deal.

He was on the phone hounding music companies to put their music on itunes.

He was personally involved.

In the lobbing of the book and a street, he and the senior vice president of apple in charge of dealing the book industry, to put their title on the new ipad device, that is something apple has been slow with.

Industry has been slow to part with -- partner with apple in that regard.

That brings up a larger point of how much apple will have to pay for the content considering time warner cable worried about losing subscribers.

They want to keep their margins juicy.

They have to put of original content.

That is the question.

How much will at the oh -- will apple put out?

This will hurt motorola now.

Apple might supplant them in the living room.

I think the cable operators recognize a better interface might benefit them because they will have happy consumers.

Revolutionary.

It would mean you have got to get a better modem.

My apple tv is a full different eco-stand.

If you could make it easier, we are there.

Thank you.

As cory mentioned, you can watch

This text has been automatically generated. It may not be 100% accurate.

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