This method of distribution will force Apple to compete on price or risk its customers subscribing to HBO Now some other way. Given that it doesn't offer broadband, that's a fight Apple probably can't win.

But it doesn't really matter. For Apple, the deal with HBO is more about selling hardware than collecting service revenue.

Apple's set-top box, the Apple TV, faces an increasingly crowded market. Devices from competitors, including both Google and Amazon, have pressured the Apple TV, and taken a toll on its market share. According to a report from Parks Associates, Apple TV fell to third place last year in the U.S., behind both Roku and the Chromecast.

Apple TV hasn't been meaningfully updated in more than three years. Although it still offers a competent streaming video experience, it lacks many of the features offered by its newer rivals, such as voice search, video gaming, and access to an app store.

From the article "Cablevision's HBO Deal Isn't a Problem for Apple" by Sam Mattera.

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