Apple and the hidden challenge standing in the way of their web TV service

Reinhardt Krause, writing for Investors.com:

Some analysts have pushed back the arrival of Apple’s web TV service to the second-half of 2016. Apple’s focus on ensuring high quality streaming could be one reason for the delay as well as acquiring content rights.

Most of what you read about Apple’s rumored web TV service (where Apple provides both the set top box and the content) revolves around the complexities of acquiring rights from players like the major networks (ABC, CBS, NBC, Fox) and others.

But a subtler problem is the complexity of handling the stream surge problem, where demand for content can build quickly, beyond the network’s availability to deliver. A perfect example of this is demand for a live sports event:

Dish Networks’ (NASDAQ:DISH) new Sling OTT (over-the-top) has been hampered by streaming issues, including problems during college basketball’s “March Madness.” For Apple, the worry is that while it can estimate demand for a web TV service, it doesn’t want traffic surges to give the service a black eye.

Handling surge streaming well is a critical issue. Interesting article.