“Apple wants the TV guys to provide their shows for its proposed streaming video service,” Peter Kafka reports for Re/code. “But that’s not the only thing Apple wants from the TV guys: It wants them to provide the streams, too.”
“Streaming video costs aren’t prohibitive: Delivery to your living room runs an average of around five cents per hour per stream, says Tom Morgan, a video industry veteran now running streaming service Net2TV,” Kafka reports. “That said, outside of Netflix, which streams billions of hours of video every three months, most streaming services haven’t experienced significant demand to date. The notion of paying their own freight for a heavily promoted Apple service has given executives pause, sources say.”
Read more in the full article here.
MacDailyNews Take: If Apple doesn’t handle the streaming, perhaps they think they won’t have to pay the ISP interconnection fees in order to ensure the quality of the streaming. However, if the content providers fail to ensure streaming quality, consumers will still blame Apple, just as they blame Apple TV today when some ISP’s bandwidth magically gets choppy whenever Apple TV is in use. Hopefully, Apple is thinking ahead and realizes that, regardless of the culprit, it’s Apple who will get blamed if the content stutters, freezes, or otherwise fails to stream perfectly. We expect Apple understands this and has a plan.