Apple 2.0

Covering the business that Steve Jobs built

Steve Jobs on TV's go-to-market problem

December 23, 2011: 8:28 AM ET

He laid out the reasons NOT to build an Apple television at All Things D in 2010

Jobs at All Things D8

There's been a lot of talk about Apple (AAPL) launching a full-fledged interactive television ever since Walter Isaacson quoted Steve Jobs saying he'd "finally cracked it."

But before the company can successfully market such a product, it must overcome the formidable hurdles that Jobs laid out the year before he died at All Things D8.

He was asked in a Q&A what was needed to fix television's broken interface. It's not a problem of technology or vision, Jobs replied. It's the lack of a viable go-to-market strategy.

"The television industry," he explained, "has a subsidized business model that gives everybody a set top box for free or for $10 a month. And that pretty much squashes any opportunity for innovation."

The YouTube video that appeared in an earlier version of this story was removed at the request of All Things D. You can see their video, with 15-second pre-roll ad, here. The full 1:36 interview is still available on YouTube here. The TV section starts at the 1:31:40 mark.

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About This Author
Philip Elmer-Dewitt
Philip Elmer-Dewitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been covering Apple since 1982, first for Time Magazine, and now on the Web for Fortune.com.

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