Now that Apple has successfully launched its music streaming service Apple Music, the company is moving on to the next thing on its list for world domination – cable TV.
The Cupertino-based company is pushing to release its very own Apple streaming TV service by fall. There have been reports that Apple had begun discussions with major networks like ABC, CBS, Fox and NBC a while back, but it floundered due to the company’s plan to also offer local live feeds to be streamed on Apple devices.
This was one way for Apple’s “cable killer TV app” to distinguish itself from other streaming TV services. The idea would certainly give the tech giant an edge over competitors who only offer TV shows from different cable channels. Unfortunately, the networks have no control over their affiliates’ feeds and the local content that they offer.
Apple has allegedly asked the networks to secure those rights from their affiliates so that they can negotiate and decide on their behalf, saving Apple the hassle of running after individual affiliates.
Now it seems that the new round of talks is ready to move forward as the networks are reportedly close to securing those deals. It seems that the networks are using the age-old trick of dangling additional revenue to convince their affiliates to sign on and offer their feeds. Plus, as one executive puts it, “Apple has a lot of reach and this is a good opportunity.”
The strategy seems to be working as more affiliates are getting on board. A source over at Fox has even said that the management already “has the ability to negotiate with Apple [for affiliates], or it will have it very soon.”
It’s also said that CBS or Disney will be among the first to sign a deal with Apple streaming TV just to get its “skinny bundle” going.
However, getting the right to negotiate for others doesn’t automatically mean that the network is already on board. There’s still Apple’s clause stating that its TV partners would have to give up 30 percent of the user’s subscription fee if the user buys subscribes via the App Store. This is a standard practice of the company and one that it is notorious for.
There’s also the matter of cost as Apple is still unsure of how much it will be charging consumers. Sources say Apple streaming TV might cost around $30 to $40 a month; but it will be launched on multiple platforms.
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