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Apple TV challenges Amazon and Google — could lead to online TV price war

September 2, 2010

Apple Inc. recently showed off its revamped Apple TV device, signaling its intent to make that business a viable alternative to mainstream cable TV and satellite services, according to MarketWatch.

But in doing so Apple also raised the stakes in its competition with Internet-based Google Inc. and Amazon.com Inc. — both of which are already competing with the iconic technology giant in areas like e-books, digital music and mobile phones.

Amazon  already offers video-on-demand services and already has reduced some of its prices to compete with Apple's planned offerings. And Google also has developed its own TV service, streaming content from the Internet as well as movies and shows from Netflix Inc., which it plans to launch in the fall.

"We view yesterday's announcements from Apple as marginally positive for Netflix and increasingly competitive to Amazon and Google," Marianne Wolk of Susquehanna wrote in a note to clients Thursday morning.

Colin Sebastian of Lazard Capital Markets wrote in his own report that Apple's move — and the corresponding price cut from Amazon — could lead to a price war in the online TV category.