Apple moving forward with streaming TV service even as content providers resist
The New York Post spoke to sources familiar with Apple's plans to learn that the company has had trouble convincing content providers to come on board with a streaming TV service. Studios have refused to give in to Apple, which reportedly wants complete control over "all aspects" of the service, including pricing.
"We decide the price, we decide what content," one source described Apple's negotiating stance as being. "They want everything for nothing," another media executive said.
Apple Senior VP Eddy Cue, who has been described in the past as Apple's "dealmaker," is said to be leading the talks. Insiders said Apple has proposed offering "channels as apps for its devices," including the Apple TV set-top box. The report was, however, unclear on whether Apple is hoping to bundle content together into a subscription or offer it on an individual basis.
Though iTunes already offers movies and TV shows for rent or purchase, Apple is reportedly interested in streaming over the web. The company is expected to run up against competitors in the space, including the networks themselves, as many of them have launched their own apps in the App Store for that purpose.
Apple reportedly tried to drum up support for a subscription TV service in 2009, but it 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 negotiations.
More recently, Apple is believed to have turned to cable operators in an effort to convince them to work with it. "They (Apple) want to create the interface, and they wanted to work with the cable guys to manage bandwidth across the TV and broadband pipeline," a source told the Post. According to the report, cable executives "pretty much shut the door" on Apple.
Apple has reportedly also had discussions with telecom companies, such as Verizon and AT&T. Last month, sources at Canadian telecoms Rogers and BCE said they have been approached by Apple about its TV initiatives and have even received prototype versions of its much-rumored connected television set.
Tipsters indicated, however, that Apple is prioritizing bringing a streaming TV service to market first before launching its own TV set. Apple is said to be aiming to launch the service before this Christmas. That would fit with reports that have claimed Apple is not due to release a TV before 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. Channel inventory of the device has dried up in recent weeks, adding to mounting evidence that an update is imminent. Apple last refreshed the device in late 2010.
66 Comments
Apple might still be trying to set up such a service, but there is zero way they can act in spite of the media companies. Apple doesn't control copyright on the shows and therefore thy can't just do what they want.
The New York Post has had more than a few articles like this. It's like thy are trying to out do Digitimes
More recently, Apple is believed to have turned to cable operators in an effort to convince them to work with it. "They (Apple) want to create the interface, and they wanted to work with the cable guys to manage bandwidth across the TV and broadband pipeline," a source told the Post. According to the report, cable executives "pretty much shut the door" on Apple.
Since they first demoed the Apple TV in 2006 they have had nothing but difficulty. I'd say there success with iTunes Music Store was too overwhelming and complete that everyone is too afraid.
I suppose one can look the iPhone, too, to see how Apple's success has changed the control focus but aren't the carriers making more money because of the dramatic change in the desire for data on smartphones?
Either way, I'm glad to read that the Apple HDTV looks to be a "last resort" solution and I fully expect Apple to be able to get a foothold in the next year or two.
PS: 1080p AppleTV 3.0 with App Store and SDK next week?
PS: 1080p AppleTV 3.0 with App Store and SDK next week?
I'm not gonna hold my breath for all that, but? here's hoping.
I'm not gonna hold my breath for all that, but? here's hoping.
Yeah the last two things can come later and are likely better suited for WWDC when they will likely demo iOS 6 and the new SDK.
I do think that a 1080 Apple TV is certain which means that 1080p iTS content is then fairly likely.
I haven't subscribed to a cable service in 5 years. My movie watching in theater has dwindled to not even once a month. What exactly are these idiots doing? They're losing their customers and watching the ship sink right before their eyes.