Apple Continues to Pursue Streaming TV Service Despite Content Provider Hesitation
A new report by The New York Post
claims to have learned that Apple has had trouble convincing content providers to come on board with a streaming TV service. Studios have refused to give in to Apple, which wants complete control over “all aspects” of the service, including pricing. A source described Apple’s stance as “we decide the price, we decide what content” which left media executives feeling like “they want everything for nothing.”
Apple’s Senior VP Eddy Cue has been described in the past as Apple’s “dealmaker” and is said to be leading the talks. Insiders have mentioned that Apple is proposing to offer “channels as apps for its devices” including the Apple TV set-top box. The report however wasn’t clear on whether Apple is hoping to bundle content together into a subscription or offer it on an individual basis. Although iTunes already offers movies and TV shows for rent or purchase but Apple seems to be interested in streaming over the web. The company is expected to run against competitors in the space, including the networks themselves, as many of them have launched their own apps in the App Store for the same purpose.
It isn’t the first time Apple tried to gain some support for a subscription TV service though as it also tried to do the same in 2009 and was unable to procure commitments from the industry. According to some executives, Apple’s interest in splitting advertising revenue was one of the sticking points that derailed the negotiations in the first place. Furthermore, Apple believe to have turned to cable operators in a recent effort to convince them to work with the idea but the cable executives “pretty much shut the door” on Apple according to another report.
The Cupertino California company even sought out to have discussions with AT&T and Verizon. Sources at Rogers and BCE (Canadian telecoms) also mentioned being approached by Apple about its TV initiatives and were rumored to have received prototype versions of its much-rumored high-definition television set. Apple does seem to be prioritizing its effort of bringing a streaming TV service to market first before launching its own TV set and is rumored to release this service by Christmas of 2012, which would fit a number of speculations of the Apple TV set being released in late 2012. In the meantime, Apple is expected to unveil an update to its $99 Apple TV set-top box as early as next week.
Source: The New York Post