How big cable uses its muscles to prevent online competition

by Da'Von B.

This is why you won’t see innovation in this field, also why an actual Apple television doesn’t make sense without content deals (an actual television set doesn’t make too much sense at all but alas…). And yet there’s no investigation into what’s going on here, all eyes are pointed to an iBooks trial where Amazon basically commanded 90% of the eBook market before others jumped in.


Rumors that Apple (s AAPL) may launch a full-fledged TV set to finally take on the TV business have been around for years. So why hasn’t Apple launched such a product yet? One reason could be that cable companies don’t want it to.

Bloomberg reported Wednesday that Time Warner Cable has been using its negotiating muscles to keep TV networks from licensing content to Apple and others. An industry insider who declined to be named confirmed this account in a conversation with GigaOM, saying that the company has been aggressively pushing for these kinds of clauses in its recent contract negotiations.

At the center of the dispute are so-called virtual cable operators — companies that operate pay TV services without having any physical infrastructure of their own. Instead of using their own satellites, cables or phone networks to get TV signals to the consumers, virtual operators would simply stream…

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