After several years of waiting, Apple TV fans may have to wait at least until next year for the long-rumored TV subscription service. The negotiations that have slowed the process involve the difference in the $40 a month Apple wants to be able to charge customers, compared to the higher prices expected by TV networks for their content, the report said. Apple had been in discussions with CBS, NBC and Fox, but disagreements over pricing have emerged. The Wall Street Journal reported in March that the service would offer programming from about 25 channels, including major networks ABC, CBS and Fox, that would be available on all devices running Apple’s iOS operating system, including the Apple TV.
Apple wants to revolutionize television the same way it did music by cutting the price of the average cable bill almost in half. Because of that competition, content providers can hold out for better terms.
The service was originally expected to be announced in June, and would compete with Dish’s Sling TV, and Sony’s upcoming streaming TV service. But negotiations with TV content providers are known to drag on for years.
Apple Inc.is trying to work out contracts with cable networks for its new live streaming…
It now has a market cap of more than $656 billion.
“Apple could send every bit from one central point, but the bandwidth costs would be exorbitant”, said Nick Del Deo, an analyst at Moffettnathanson LLC. “Plus, the service would be bad”.
Akamai CEO Tom Leighton declined to say whether the company’s increased spending was tied to an Apple TV service.
Even when the service does launch, it will clearly be restricted to the United States, with the kind of gradual roll out once staged by iTunes, and more recently Apple Pay.
Apple’s been asked to comment on the report.
To be fair Apple is not the only tech giant which has been unable to manage the TV stations.
Launching the video network at the September event would have helped it coincide with the beginning of the new network TV season in the US.