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  • Apple Reportedly Still In Negotiations with Content Owners for Streaming TV Service

    Although new Apple TV hardware is expected to be released at the upcoming September 9th event, the long awaited subscription television service is reaffirmed to remain on hold, largely due to ongoing negotiations with content owners. Jessica Lessin of The Information recently mentioned the subscribers this past Friday that she has been told by sources that the “economics” of a subscription TV service remain the main sticking point between Apple and its potential partners. To be more specific, the price that the Cupertino California company wants to charge consumers is said to be too low for content markers, preventing the service from debuting next month.

    Lessin wrote the following regarding the matter:

    There's still a big gap between the price media companies want for their TV channels and the roughly $40 a month Apple wants to charge consumers. Something has to give.
    Lessin’s sources mentioned that if the service is absent, Apple will focus on the integration with HomeKit accessories, allowing the Apple TV to be a hub for controlling connected devices in the home. She also mentioned that Apple plans to highlight security, placing emphasis on the fact that data will be stored on the Apple TV itself as opposed to being stored in the cloud.

    The Cupertino California company’s main interest according to rumors has been to get pricing that is roughly $40 or less. Back then, it was said that Apple hoped it could work out the deal to help launch its new service alongside a new set-top box in June, just in time for this year’s Worldwide Developers Conference. We already know that this didn’t work out for Apple as neither the service nor the hardware were unveiled.

    It is now being said that the new Apple TV is set to be a part of Apple’s September 9th event. The device is said to include support for both Siri Voice Control, a new remote with touchpad and a dedicated App Store for third-party downloads.

    Despite the launch of the new hardware being imminent, multiple reports are claiming that the subscription service has been internally delayed to sometime next year due to talks with major networks still in the works. In addition to the licensing hurdles, the Cupertino California company has also been said to lack a network infrastructure that is able to feed what’s expected to a large number of Apple TV boxes. As of right now, Apple supposedly needs to populate servers around the US with content to ensure a smooth streaming experience but so far is only fielding data centers in California, Nevada, North Carolina and Oregon. The company has been working on building out its own proprietary network but is apparently working with Akamai to handle the bulk of its content distribution work.

    We’ll have to wait until we get more concrete evidence.

    Source: The Information via AppleInsider
    This article was originally published in forum thread: Apple Reportedly Still In Negotiations with Content Owners for Streaming TV Service started by Akshay Masand View original post