“Yes, Apple has walked away from the negotiating table with the TV guys, which means you won’t be getting a subscription TV service from Apple anytime soon,” Peter Kafka reports for Re/code. “And yes, there’s a dispute between Apple and the TV guys about how much Apple should pay the TV guys.”
“But there’s a conflict about money in any negotiation,” Kafka reports. “Apple’s beef with the TV Industrial Complex is a bit more nuanced. It’s also a significant one: If Apple gets its way, TV will undergo a significant change, just like the music business did when Apple launched its iTunes store in 2003.”
“If Apple gets its way, it means the traditional pay TV package, which averages around 100 channels, will get shrunk by nearly 80 percent,” Kafka reports. “And while TV executives will say they understand that consumers don’t want to pay for channels they don’t watch, all of them will argue that their channels are must-haves. That means 21st Century Fox, for instance, is reluctant to sell Fox and Fox News without bundling in its FX channels or its new Fox Sports 1 network. The same goes for Disney (ABC, ESPN, Disney, etc.) and NBCUniversal (NBC, Bravo, USA, SyFy, etc.) and on down the line.”
Read more in the full article here.
MacDailyNews Take: Just continue cutting the cord and buying Apple TVs and soon enough the balance of power will tip Apple’s way.
Once again, Apple’s Internet TV service will have to have ESPN. It will also likely require the “Big Four” networks (ABC, CBS, Fox, NBC) – although it could launch with three out of four and eventually hammer out a deal with whichever one is being the most reticent. That said, having already missed the launch of the new Apple TV, Apple might as well wait until they have a full dance card.
Beyond the Big Four, if you go by ratings (total viewers), the top 20 cable networks are:
7. Fox News
12. Adult Swim
13. Nick at Nite
15. ABC Family
Source: Nielsen estimates, full year 2014
Apple debuts new Apple TV ad, ‘The Future of Television’ – December 9, 2015
Greedy media companies stymie Apple’s plan to offer Apple TV Internet TV package – December 9, 2015
CBS CEO Moonves says Apple puts live TV service ‘on hold’ – December 8, 2015
Fox’s James Murdoch, CBS’s Les Moonves hint at looming Apple Web TV service launch – November 5, 2015
CBS CEO Moonves says Apple TV content deal is likely – October 14, 2015
CBS CEO: We’re still in negotiations with Apple over new Internet TV service – May 27, 2015
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]