Apple will likely prove a formidable competitor if it does so, for one reason. As it has done in the past, Apple is likely to use the service to sell more of its devices. As elsewhere these days, the most dangerous competitors are those who are willing to essentially give away or merchandise something of value because doing so helps a firm sell more of what it really make its money doing. In Apple's case, music, apps and video are just interesting bits of software that help it sell more devices.
That obviously is dangerous for other providers, including cable companies and Netflix, that make their money from video subscriptions.
HTC also is launching its own mobile video service, for the same reasons.
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