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  • Apple Reportedly Making Progress in Talks with Major Networks for Streaming TV Service

    According to a recent report, talks with major networks regarding an Apple streaming TV service appear to be making major advancements ahead of an anticipated launch this fall. The Cupertino California company has finally broken through with ABC, CBS, NBC and Fox according to the New York Post. The major obstacle in negotiations was said to be Apple’s interest in live feeds of local channels but since the networks don’t directly control affiliate feeds, Apple’s team asked the networks to secure affiliate rights rather than spend time pursuing each one itself.

    As of right now, it appears that the networks are close to being able to negotiate with Apple on behalf of affiliates according to the sources. In compensation, the affiliates are being promised a share of the extra revenue that Apple’s service is said to help generate. CBS or Disney (which currently owns ABC) will is likely to be the first to sign a deal with Apple according to the sources, which mentioned that they are also likely to back the idea that Apple plans to sell customers a “skinny” channel bundle.

    With everything being said and done, there are likely to be several obstacles as well. These obstacles include whether TV partners will have to sacrifice 30% of subscription fees if they’re paid via the App Store. For those of you who didn’t know, Apple normally claims 30% of all the App Store purchase revenue, even if a person is paying for a third-party service that is simply delivered through an iOS app. Maintaining this split would potentially take a deep bite out of network revenues. Another issue is that networks have signed the “most favored nation” clauses with other parties meaning they can’t charge Apple less than others. The Cupertino California company is also undecided on how much it plans to charge with estimates ranging anywhere from $10 to $40 a month.

    The sources also noted that Apple is hoping to launch this service as soon as late fall and may incorporate some channels that are typically cable-only like Discovery and ESPN.

    We’ll have to wait and see if everything being said turns out to be true.

    Source: New York Post
    This article was originally published in forum thread: Apple Reportedly Making Progress in Talks with Major Networks for Streaming TV Service started by Akshay Masand View original post
    Comments 1 Comment
    1. CZroe's Avatar
      CZroe -
      Apple doesn't get any of the money when Inorder Dominos or Pizza Hut with their apps. Why are they allowed to end-around if others aren't?

      Also, they targeted Amazon in particular with the Kindle services (book sales), but what about the Amazon app itself? I bought a ton of stuff during Prime day yesterday and some was using the app. It didn't use Apple's in-app payments but neither did Kindle.