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Apple Inc. (AAPL) is weighing an expansion of its AirPlay audio service to include streaming video from an iPhone or iPad to television sets, according to two people familiar with the project.

Under the plan, Apple would license its AirPlay software to consumer-electronics makers that could use it in devices for streaming movies, TV shows and other video content, said the people, who asked to remain anonymous because the plans haven’t been made public. Apple now only licenses AirPlay for streaming audio. Devices that could be used for video may be available this year, one of the people said.

This makes so much sense.

Apple Television sets here we come.
 

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This makes much more sense than the rumours of Apple selling their own branded TV. I always thought that Apple TV, especially with version 2, was the best way to deliver that kind of functionality to the living room compared to building their own TV set. It's also the most logical extension/evolution of what they are already doing in the audio space.

I'm really pleased at how Apple's implementation of iTunes HomeSharing has evolved. Plus the improvements in the Remote app for iOS devices and the addition of AirPlay to those devices have really made the whole eco-system a pleasure to use around the house.
 

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One company that wouldn't like this is Netflix
 

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I'm not sure I see it that way. Apple and Netflix don't really compete against each other. I think they complement each other's services even if there is some overlap. Netflix's subscription streaming service seems to be more about access to older 'library' content whereas Apple iTunes service is more about access to 'first run' content although they do have older 'library' content as well. Now, if Netflix were to start streaming first-run content or Apple start a subscription service then they will certainly be butting heads.

Anyway, I'm sure Netflix is well underway in negotiations to be included in future 'net' connected TV sets. It would seem like a natural next step in their evolution.
 

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Isn't it better for Netflix? I mean anyone with an iPad (or maybe even an iPhone?) can now stream Netflix content to a home theatre. It puts millions more set-top boxes within reach for Netflix...
 

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Netflix is way overpriced for what they actually offer.

What's the actual barrier to entry to setting up a media streaming company?

Not the technology or infrastructure, it's the contracts with the media companies which Apple already has the beginnings of.
 

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Another proprietary system that locks you to one provider. We're going to end up with so many boxes if you want access to everything available...
 
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