Apple Enlists Networks to Negotiate With Local Affiliates in Streaming TV
Apple (NASDAQ: AAPL) still wants to include local station feeds of the Big Four broadcast networks in a new over-the-top video service, and the company has reportedly found a way to handle the tricky problem of carving out licensing deals with hundreds of local network-affiliate stations. That strategy appears to paying off states the report.
At CBS, executives are talking to affiliates about conducting Apple negotiations on their behalf, one TV source confirmed.
At Fox, the network “has the ability to negotiate with Apple [for affiliates], or it will have it very soon”, a second executive added.
Disney or CBS will be the first to ink a deal with Apple, a source said.
The service is apparently ready to go, all Apple need to do is come to agreements with the TV networks, which could mean it will launch later this year, possibly in September. Others might negotiate to have their cable channels included in the product as well. They are being notified by networks that they can opt in to Apple’s plans and share in the revenue of the Apple streaming service.
It’s unknown how much Apple wants to charge monthly for the service, which will reportedly be available on the iPhone, iPad, Apple TV. Still causing ructions is Apple’s reported demand for 30-percent of subscription revenues, which is said to be causing some at the networks to balk. Along with the major networks, the service will include other content providers like ESPN and the Discovery Channel.
Apple’s Eddy Cue has been recently spotted chatting with NFL Commissioner Roger Goodell and Patriots owner Bob Kraft at Allen & Company Sun Valley Conference, prompting speculation that Apple is also working on a possible National Football League offering. Sources claim to have heard anything from as low as $10 per month to $40.