Apple to delay release of live TV service, Bloomberg report says

Cord-cutters expecting to get their movies and television shows over an Apple-administered TV service this year will reportedly have to wait until at least next year.

Apple, Inc’s live streaming television service has been delayed again, with a report Thursday that the tech giant has been unable to come to an agreement with the large television networks. Apple also lacks the computer network capacity to ensure a good viewing experience, according to the sources, who asked not to be identified because the talks are private.

The firm nonetheless plans to introduce a extra highly effective model of its Apple TV set-top field on the occasion, which shall be held in San Francisco. The company earlier successfully convinced music labels to sell music at prices as low as 99 US cents through its online stores. That’s roughly half of the average cable bill in the US.

Media conglomerates like the possibility of a new player entering the market and willing to pay for their networks because of the declining numbers of pay-TV subscribers.

Apple has been working for nearly a decade in trying to reinvent TV. With iPhone sales slowing, the world’s most valuable company is projected to grow revenue 5.3 percent in 2016, down from 28 percent this fiscal year. It is now expected that live TV service will be launched in 2016. Back in March, the Wall Street Journal reported that Apple’s service would include networks like ABC, CBS, Fox, and various subsidiary channels like ESPN and FX.

Licensing negotiations with programming providers has proved a stumbling block for others hoping to create alternatives to traditional TV. “It represents the next frontier for Cook & Co.”, referring to Apple Chief Executive Officer Tim Cook.

“Apple could send every bit from one central point, but the bandwidth costs would be exorbitant”, said Nick Del Deo, an analyst at Moffettnathanson.

Apple representatives declined to comment on the report.

But the report does confirm that Apple will introduce next-generation Apple TV hardware at a special event on September 9.