Apple Ready To Launch Video Service?

Apple is preparing to launch a video service taking on Netflix, argues Jefferies analyst Peter Misek. Misek says Apple will use its new massive data center in North Carolina to offer an advanced web-based video subscription product, and likely will use a revenue sharing model similar to the App Store, giving content owners 70 percent of the revenue.

Apple will likely prove a formidable competitor if it does so, for one reason. As it has done in the past, Apple is likely to use the service to sell more of its devices. As elsewhere these days, the most dangerous competitors are those who are willing to essentially give away or merchandise something of value because doing so helps a firm sell more of what it really make its money doing. In Apple's case, music, apps and video are just interesting bits of software that help it sell more devices.

That obviously is dangerous for other providers, including cable companies and Netflix, that make their money from video subscriptions.

HTC also is launching its own mobile video service, for the same reasons.

Apple Ready To Launch "Far Reaching" Video Service That Will Disrupt Traditional TV Business