This article discusses the upcoming battle between Apple and media companies over content licensing deals for Apple’s new iTVs. The author argues that media execs have learned their lessons well from Steve Jobs’ audacious approach to negotiating content licenses a decade ago, but still face significant challenges in asserting the true value of their content.
The main points made by the author are:
- Media companies have come to realize that content is king and will no longer be willing to give away easy money for licensing deals.
- Apple’s vast war chest ($100 billion) makes it a strong contender to win the online video game, but the company still needs to offer an exceptional experience with its iTVs.
- The true value of content lies not just in the initial sale price but also in the long-term purchase relationship that drives Apple’s growth.
The author concludes by suggesting that media companies should be audacious like Steve Jobs and demand terms that reflect the true value of their content. If they fail to do so, they may miss out on significant revenue opportunities in the online world.
