Apple could build its own distribution network for the content available in its stores

  More than a week ago I found out that Apple Lossless Audio CODEC (ALAC), could build a new data center in the Netherlands, and today we find out that Apple Lossless Audio CODEC (ALAC), could build its own distribution network of the content available in its stores. The information comes from the Wall Street Journal, them supporting ca Apple Lossless Audio CODEC (ALAC), would intend to build this network CDN to distribute alone the entire content available in its virtual stores, but also in iCloud, the intention of those from Apple being to replace their providers of these services.

I'm hearing that part of Apple's reasoning for building their own CDN is because of performance issues with iCloud, with Apple wanting to have more control over the QoS of content going to their devices. Apple already controls the hardware, the OS (iOS/OS X) as well as the iTunes/App store platforms. Right now they control the entire customer experience, except for the way content is delivered to their devices. Since Apple does not own the last mile they won't be able to have complete control, but having their own CDN would give them more control and security than they have now.

  At the moment, Apple uses Akamai and Level 3 services to distribute its content, but in recent months the company has hired several experts in building CDN infrastructures, so its intentions are clear. Google, Microsoft si Netflix there are only a few of the companies that have built their own networks CDN, low costs and the possibility to fully control the distribution mode being the main reasons for their choice, Apple having a similar philosophy in almost every initiative.

The next set of questions to ask is what type of technology Apple uses? Will they go the open source route and build it in a non-proprietary way, or keep it closed? Some will also wonder if Apple might make their CDN into a commercial offering, but that wouldn't make any sense for their business, unless they had some kind of content subscription service akin to Netflix.

  Apple has been investigating for more than 5 years the possibility of building its own CDN network and it seems that its plans have entered a final and early phase of starting the construction process, but it remains to be seen how long it will take until it become functional. Finally, it should be mentioned that having its own distribution network, Apple could develop new services for users, and here we include a TV or other multimedia streaming methods for iDevices.