More Clues Apple Is Working to Replace Your Cable TV Company

Apple’s content delivery network of choice has recently reported that it expects to see its combined revenue from its two biggest customers drop in half this year. Why should you care? Well, this may be a sign that Apple may be looking to build a network of servers to deliver streaming content to their users.

Rumor has it that Apple has been looking to build its own subscription-based streaming television service for quite some time. The company is looking to offer a “skinny bundle” of some of the most popular channels available for a substantially lower price than most cable and satellite services offer.

Launch of the service has reportedly been delayed several times due to negotiations with content providers. Perhaps Apple’s declining business with Akamai suggests that they are looking in-house to bolster their streaming capabilities – a possible sign that they are making headway in their negotiations, and we may see the debut of the television service soon.

A content delivery network (also known as a content distribution network or CDN) is a network of servers that deliver massive amounts of data to end users. CDNs typically have servers strategically placed around the globe, and will deliver content from the server geographically closest to the end user. Many large internet companies use CDNs to deliver content quickly and efficiently to their users, while at the same time taking some of the stress off of the company’s servers.

Apple’s CDN of choice for the past fifteen years has been Cambridge, Massachusetts-based Akamai.

According to Business Insider, Akamai’s CEO, Tom Leighton, recently reported during an earnings call that business with its two largest companies has been on a recent decline. “Over the last two years, our two largest customers in particular, comprise about 13% of Akamai’s overall revenue. As we look ahead to 2016, we expect these two accounts to still be our largest media customers, and they will contribute about 6% of our overall revenue.” Akamai’s largest customer is Apple, and its second largest customer is Microsoft.

Leighton also stated “this seven point change in contribution results from their increased do-it-yourself, or DIY efforts.” With Apple looking to open three new data centers in the next two years, including a second in Reno, NV, it appears as if Apple may be looking to decrease their reliance on third-party CDNs, and deliver much of their content themselves. Business Insider speculates that this may indicate that Apple is preparing for its long-rumored TV streaming service.