Assuming that Apple were to create a remastering studio and invest the money necessary to remaster all movies shot on film, and then assuming Apple duplicated the entire UltraFlix offering, and then assuming Apple were to lower their prices to be the same as UltraFlix and others, not higher, and assuming that 100% of the Apple TV customers used iTunes to rent their movies, they would still only at best take away 12.3% of the UltraFlix revenue based on the current penetration, which is currently declining, not growing. Set top boxes are becoming less and less used because the TV's now have the ability to run apps naively with no box attached.

Yes, Apple has unlimited resources. Yes Apple is a significant force in the Market. Yes, Apple could just buy up players in this market, but at the moment they are not in a position to eliminate the market or the opportunity for UltraFlix.