Apple Struggling to Get Content for iPad

[Paul Daniel Ash]

With just a couple of weeks to go before the iPad launch, Apple is having a hard time getting big content providers, like TV networks and publishers, to cut deals on providing content for Apple's new device. The Wall Street Journal reports that Apple is scaling back its plans in the face of resistance from the content providers, and observers are wondering if the lack of attractive content may cause iPad sales to stall after enthusiasts - who have helped push iPad pre-orders near the half-million mark - are done buying.

Apple has made much of the iPad's multimedia capabilities since the product announcement back in January. Calling it a "magical and revolutionary new device," Steve Jobs sat on a couch the stage at the Yerba Buena Center for the Arts in San Francisco and showed off how useful the device was for not only web browsing, but also watching TV and movies, and reading newspapers and magazines. However, the licensing deals for the TV and newspaper content have not materialized, as companies are nervous about the iPad cannabilizing their traditional revenue sources.

According to what the Journal report refers to as "people familiar with the matter," Apple is being forced to give up its plans to provide an "all-you-can-eat" subscription plan that would have allowed users to watch unlimited TV programming on their iPads for a flat monthly fee. The major networks are having second thoughts about the idea, worrying that it might cut into their revenues, including the billions they get from their deals with cable TV carriers and satellite networks. Reportedly, Apple is pushing hard to sell them on the idea of lowering the price per TV episode to $0.99 US from $1.99 or $2.99, arguing that increasing iTunes sales would be a new source of income.

Similarly, publishers of newspapers are also resisting Apple's overtures, and the same report says that these deals are being put "on the back burner" for now. One of the main sticking points appears to be Apple's lack of support for Flash content on the new device, which many companies use to serve ads and other content. the publishers are reluctant to rework their sites to work around Apple's disdain for Flash, meaning that the notorious "blue Lego" will continue to haunt the iPad browsing experience.

One bright spot for Apple is the apparent excitement among book publishers for the new device. Deals are reportedly already set with major and independent publishers including Hachette Book Group, HarperCollins Publishers, Macmillan Publishers, Penguin Group and Simon & Schuster, and the new iBookstore should have a broad assortment of titles available when it launches. Users will also have the option of loading content that is encoded with the open ePub standard, and both Amazon and Barnes & Noble have announced that they are developing iPad apps for their e-book offerings.

[battlecrushr]

they shoulda planned better

[dale1v]

A bit unnerving for potential customers; hearing this two weeks before launch...

[dray]

It serves them right for being so greedy and controlling of their devices and content.

[adp]

lol @ the picture...seems like Jobs shares McCain's cheek tumor

Yes...the infamous blue brick...

[CaptainChaos]

Newspapers especially have been hit hard from folks not buying paper printed material so this seems like a logical way to get customers back. They already have online subscriptions so how does it not make sense to offer one for the iPad?

[madczech]

I guess as soon as it comes out... developers will run towards the ipad not the other way round... same as what happened to the iphone... Im in no concern that they wont get enough stuff for the ipad! I mean is there anything else like it on the market except the ipod touch and the iphone??

[Luppin]

Watching TV on 47" screen or a 10" one, boy that sure is a hard decision

I doubt anyone would give up their cable/satelitte subcription in favor of buying TV shows on iTunes but if the iPad is designed for "couch-surfing" then wouldn't the owner already be on the couch, with the TV in front of them? Maybe if you're on a flight somewhere this could be useful, but sitting in the park/on the subway with this extremely attention-grabbing device isn't exactly the best way to protect your investment.

[moon#pie]

Epic picture! Serves apple right.

[k.nitsua]

Things are still good on the eReader front - so I'm still a happy clam ^_^

[billchase2]

Not worried. I'm sure it'll take off... just give it a little more time.

[lolcats1]

Not worried. I'm sure it'll take off... just give it a little more time.

just like the lama burgers

[EdmundGerber]

I can see Apple leaking code to jailbreak devs, just to get this thing popular, if this news is true.

[clive.weller]

Ha Ha Ha Ha Ha Ha Ha! SERVES THEM RIGHT.

[savon]

This post reminds me of a TV Commercial that Kyle Matthews (founder of MMi) was in a few years ago. What a sexy beast: [ame=http://www.youtube.com/watch?v=yb9zNU-pk_I]YouTube - RNR Custom Wheels | Wheels Or No Wheels[/ame]

[boxxa]

If they just supported flash, I am sure people would be happy with Hulu.

[stickyd]

Apple may be rushing to try and secure an "all-you-can-eat" subscription-based service, but in no way will content be limited on the iPad as this article implies. You'll still be able to download music, tv shows, movies, etc...Apple wanted a monthly service fee to allow it's iPad users to select any network, show or movie to download, but the networks are pushing back. Therefore, Apple is trying to negotiate a $.99 per episode for TV downloads. This is all to benefit it's customers. However, if they don't get this done by launch, it's by no means a failure as some would imply. There's no other deals remotely similar to what Apple was trying to negotiate, so it's a moot point. Idiot bloggers!

[screamforme02]

Secrets dont make friends. And neither does a closed minded environment. HP slate here i come and maybe a little ASUS all in one keyboard.

[Amadomon]

If they just supported flash, I am sure people would be happy with Hulu.

I for one am not at all sold on the need for Flash, and I am the furthest thing from an Apple fanboy (though I am a Flash developer). Flash IS CPU-intensive, and few sites use it properly. Also, today I watched a video on my iPhone from the new Flashless NY Times site, which was thrilling. Already, developers are preparing for HTML 5, which WILL make for a MUCH better browsing experience. Sit tight and prepare to be amazed.

[Kyle Matthews]

please tell me you made that photo