Apple (NASDAQ: AAPL) reportedly has become the latest content provider to decide that building its own network to provide a speedier lane for its content is better than using traditional pipes from incumbent providers.
Like other content providers, Apple has worked with traditional network providers to support its flagship consumer products such as iTunes for music and movies, iCloud for storing photos and other content, and the Siri voice-activated assistant.
News of Apple's network moves comes as it introduces a streaming-music service at its developer conference in San Francisco. An additional TV service may be announced at a later date, according to news reports.
Andrew Schmitt, an analyst at IHS Infonetics Research, told Bloomberg that Apple's move is all about gaining more control over how it delivers content to users.
"User experience is very important to Apple, but delivery of its content is the one part of that experience it doesn't control," Schmitt said. "If they want to control and maximize that user experience, they're going to have to control that last piece."
According to Bloomberg, Apple's proposed network plans include two main elements: building a faster network, and upgrading their data centers. Analysys said in a report that Apple invested $1 billion into data centers last year.
Content owners building their own network infrastructure has become an emerging trend--one that's not just relegated to Apple. Other active participants include Microsoft (NASDAQ: MSFT) and Google (NASDAQ: GOOG).
Microsoft has made an investment in submarine cable players Hibernia Networks and Aqua Comms to enhance its connectivity across the Atlantic ocean region, as well as with the New Cross Pacific (NCP) Cable Network that will connect North America to Asia. The company is also the first customer on Aqua Communications' America Europe Connect (AEConnect) project, a submarine cable system being built by TE SubCom.
No less compelling is Google. The Internet search giant, which is one of Microsoft's largest cloud competitors, is participating in FASTER, a five-company effort to build a trans-Pacific cable system that will link major cities on the U.S. west coast to two coastal locations in Japan.
- Bloomberg has this article
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