2. Apple could offer access to live TV from network channels in combination with other web-based video services. One middle-of-the-road option could be for Apple to deliver live TV from network channels (either over the internet or over the air) to the Apple Television. Apple could then leverage a new App Store for the Apple Television to supplement the basic live TV features with Netflix, Hulu Plus, or any content provider that chooses to build an app for the television. In this instance, Apple would also likely continue to offer its iTunes movie and TV content through the iTunes store to the Apple Television.
3. Apple could offer monthly subscriptions, on an a-la-carte basis, for live TV packages with content from content providers. Clearly the most challenging option, if Apple truly wanted to control the entire television experience - which, again, the company chose not to do when entering the smartphone market - it would have to become a virtual MSO (Multiple Services Provider) and offer monthly subscriptions for live TV services. Such an offering would be unlikely given existing licensing arrangements between content providers and service providers as well as the fact that it lies outside of Apple's core competencies, even in media. That said, it would enable the company to control the entire experience and possibly deliver new features that are currently unavailable through existing television service providers and CE device makers.
Our take? Anybody can build a TV set, although Apple may have bought itself access to better screen technologies. Fixing TV's broken user interface is right in Apple's wheel house. Apple's iCloud and iTunes store might give it an edge, but TV viewers so far haven't seemed terribly eager to buy TV shows a la carte. The biggest unknown is whether Tim Cook or Eddy Cue can talk Hollywood into signing the kind of content deals Steve Jobs was never, in his lifetime, able to get.