Apple to Delay Streaming TV Service Until 2016

By |


Apple-logo.jpgBloomberg and other publications are reporting that Apple's planned streaming TV service will not be introduced until 2016. Reports say that Apple had hoped to introduce the service next month to coincide with the start of the fall TV season. However, talks with major broadcasters like CBS and 21st Century Fox are progressing slowly. Apple's hope to assemble a compelling channel lineup for around $40 per month is proving to be a challenge.

On a positive note, Apple is still expected to introduce a new, more powerful Apple TV product next month. 

From Bloomberg
Apple Inc. customers waiting for the company to revolutionize live television as it did for music and phone service will have to keep waiting, at least until next year.

The company wanted to introduce this year a live TV service delivered via the Internet, but is now aiming for 2016, said people familiar with Apple's plans. Talks to license programming from TV networks such as those owned by CBS Corp. and 21st Century Fox Inc. are progressing slowly, some of the people said. Apple also doesn't have the computer network capacity in place to ensure a good viewing experience, said some of the people, who asked not to be identified because the talks are private.

Without enough content deals in place, Apple has scrapped plans to announce the service at a Sept. 9 event in San Francisco, which would have coincided with the beginning of the new network TV season, the people said. The Cupertino, California-based company still plans to introduce a more powerful version of its Apple TV set-top box at the event, said the people, but customers -- for now, at least -- will need a cable or satellite TV subscription or an antenna to watch live network television.

Television programming is a key part of Apple's strategy to use music, information and entertainment to keep the company and its devices at the center of people's digital lives.
The main stumbling block is the price of content. Just as Apple once convinced music labels to sell songs for a lowly 99 cents, it wants to offer a package of popular channels for $40 a month, the people said. That's roughly half of the average cable bill in the U.S.

Higher Payments
The TV programmers expect to receive more, not less, money from new Internet-based services like Apple than from existing cable and satellite TV partners, because they're new to the market and are seeking to gain share. Talks with CBS, Fox and NBC, owned by Comcast Corp., have been mired for the past several months, said the people. The prospect of a new player willing to pay for their networks is particularly appealing to media conglomerates, given the declining number of pay-TV subscribers.

Negotiations between content providers and pay-TV companies often drag. Dish Network Corp. spent years securing a small bundle of cable channels for a service called Sling TV. Introduced in January, it includes Disney Co.'s ESPN and Time Warner Inc.'s TNT and a few other live channels at a cost of $20 a month.

Apple, which has been trying for more than a decade to remake video entertainment, is struggling to find the right mix of channels to appeal to cord-cutters for about $40, said the people, who couldn't say when or if the negotiations would be completed.

To read the complete Bloomberg article, click here.

Additional Resources
Apple Music Streaming Service (iTunes Version) Reviewed at HomeTheaterReview.com.
Details Emerge on Apple's Streaming TV Service at HomeTheaterReview.com.


  • Comment on this article

Post a Comment
comments powered by Disqus

Latest News

Nov 28
GoldenEar Triton One.R Now Shipping We get a lot of emails and PMs here at HomeTheaterReview from readers who want us to help them pick...
GoldenEar Triton One.R Now Shipping

Nov 23
SVS Announces Black Friday Deals on NSD Series Subwoofers Priced at $399 and $499 each, these subwoofers are available in limited quantities, and when they're gone they're gone.
SVS Announces Black Friday Deals on NSD Series Subwoofers

Nov 21
Sound United Announces Black Friday/Cyber Monday Deals With sales prices of up to $300 off of select products, Sound United is dropping some serious deals for this holiday buying frenzy week.
Sound United Announces Black Friday/Cyber Monday Deals

Nov 16
McIntosh Introduces New XRT1.1K Loudspeaker Smaller and more affordable than the XRT2.1K, the new speaker still packs a massive punch.
McIntosh Introduces New XRT1.1K Loudspeaker

Nov 15
SVS Introduces 3000 Series Subs Is SVS' 4000 Series too much sub for your room, but the 2000 Series isn't quite enough? SVS has you covered with two new subs.
SVS Introduces 3000 Series Subs