Greedy media companies stymie Apple’s plan to offer Apple TV Internet TV package

“Apple Inc. has suspended plans to offer a live Internet-based television service and is instead focusing on being a platform for media companies to sell directly to customers through its App Store, according to a person with knowledge of the matter,” Adam Satariano and Lucas Shaw report for Bloomberg.

“While Apple isn’t giving up entirely on releasing a live-TV service, its plan to sell a package of 14 or so channels for $30 to $40 a month has run into resistance from media companies that want more money for their programming, said the person, who asked not to be named discussing a prospective product,” Satariano and Shaw report. “CBS Corp. Chief Executive Officer Les Moonves said at a conference earlier Tuesday that Apple had put its live TV plans ‘on hold.'”

“The struggle highlights the difficulty new entrants face in trying to persuade media companies to overhaul the conventional pay-TV bundle, which costs about $85 a month. To break the logjam, Apple would either have to charge more, or the media companies would have to accept less,” Satariano and Shaw report. “Moonves, speaking at the Business Insider Ignition conference, said he expects Apple to eventually offer a bundle of channels. ‘This will happen,’ Moonves said. ‘It has four major networks and 10 cable networks, let’s say, and the price point will be in the $30s, $30 to $35, $40 maybe. People will not be spending money on channels they don’t want to watch.'”

Read more in the full article here.

MacDailyNews Take: Apple TV’s plans to take HDMI 1 will have to wait.

So, eventually, when/if it ever happens, 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.

What else would you consider to be must-haves?

Beyond the Big Four, if you go by ratings (total viewers), the top 20 cable networks are:

1. ESPN
2. USA
3. TNT
4. Disney
5. TBS
6. History
7. Fox News
8. FX
9. Discovery
10. AMC
11. HGTV
12. Adult Swim
13. Nick at Nite
14. A&E
15. ABC Family
16. Lifetime
17. Syfy
18. Food
19. TLC
20. Bravo

Source: Nielsen estimates, full year 2014

SEE ALSO:
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

28 Comments

    1. Not really, Fox News in entertainment disguised as news.

      They tried to get a lisence to air in Canada about 10 years ago. Our CRTC refused them a news lisence, told them they were welcome to reapply as an entertainment channel. They never did LOL.

  1. Never doubt the:
    A) Antiquated thinking,
    B) Stupidity,
    C) Parasitic bad attitude…
    … Of the media oligarchy.

    They hate their customers, screw them at every opportunity, engender the hatred and retribution of their customer victims, enabling the corresponding bad attitude of media piracy, a death spiral of self-destruction.

    So is it any surprise that the worst of the moronic media moguls have no use for Apple TV? Of course not. They hate Apple and its newfangled technology gizmos. Just fork over the dollars, dammit!

  2. For entertainment I watch movies on iTunes and Netflix on my Apple TV. I also enjoy user generated content on YouTube and various live cam apps. For news I use the CNN, Yahoo News and Ted apps and the YouTube and Apple news sites mainly on my iPhone. For financial news I use the Bloomberg app on the Apple TV. The only thing I use cable TV for is some sports. The rest of cable TV has lost me as a customer because it is so inconvenient to find something interesting.

    Most people in my circle don’t watch shows on cable TV anymore. This includes people between the ages of ten and the mid seventies. At some point, advertisers will wake-up and demand lower pricing from cable TV just like they do with Android, and when that happens channels will pay less for content creation. Many content creators will make more revenue releasing their shows on multiple streaming platforms like Apple TV, YouTube, Netflix, Amazon TV, etc.

  3. Dear MDN,
    Adult swim is not a network or a channel. Nick at Nite is not a network or a channel. They are both part of a channel. (Cartoon network and Nickelodeon respectively)

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