Apple is getting ready to launch a "a new far reaching cloud-based service" focused on video, Jefferies analyst Peter Misek says in a note to clients, as reported by "Business Insider" (http://macte.ch/d8H1k).

Misek says Apple will use its new massive data center in North Carolina to offer an advanced web-based video subscription product that rivals Netflix.
This will allow Apple to take advantage of its iOS lock-in and increase device sales, he adds. According to "Business Insider," here are the highlights of the analyst's report:

° In addition to North Carolina, Apple may be considering building a other data centers elsewhere in the U.S. and then in Europe. These "super data centers" are going to be used to deliver video to Apple devices.

° Supporting his overall video theory, Misek says, "We find it notable that the content companies, citing a lack of domain license, asked Cablevision to remove channels from its iPad app. We believe these same companies are negotiating some sort of deal with Apple."

° The big advantage of building an inclusive video service for Apple is that it can drive sales of iPads, iPhones, and other Apple gadgets. If it works, it's an Apple-specific software service that Google can't offer with Android.

° Misek Apple will launch either a new set top box or an actual television in 2012 or 2013. While the TV business is usually not good from a margins perspective, the analyst thinks Apple's years of supply chain management, software and hardware design could be a big advantage.

"Aside from incorporating Apple TV-type functionality, what else could Apple include in the iTV?" Misek writes. "We believe a full browsing experience potentially incorporating an iPad, iPod Touch, or iPhone as remote control or input device is very possible. We think Apple could provide an extremely elegant solution effectively allowing the user to move content between the multiple screens ... "We have run a sensitivity analysis on the potential impact. Assuming an iTV launch, a cloud-based services launch, and a halo effect on existing devices (boosting units and average selling price by 5 percent), fiscal 2012 revenues would range from $150 billion to $171 billion versus our $134 billion and consensus' $118 billion."