A new report by The New York Post is saying that Apple had trouble in convincing content providers to come on board with a streaming TV service.
Studios have refuted Apple’s demands as Apple wanted complete control over “all aspects” of the service, including pricing. A source described Apple’s stance as “we decide the price, we decide what content”. This left media executives fuming as they felt that “they want everything for nothing.”
Apple’s Senior Vice President (VP) Eddy Cue has been described as Apple’s “dealmaker” in the past. He is said to be leading the talks. Insiders have mentioned that Apple is proposing to offer “channels as apps for its devices” including the Apple TV set-top box.
However, the report did not clarify on whether Apple is hoping to bundle content together into a subscription or offer it on an individual basis. iTunes does offer movies and TV shows for rent or purchase. However, Apple seems to be interested in streaming over the web. The company is expected to run against competitors in the space. That includes the networks themselves, as many of them have launched their own apps in the App Store for the same purpose.
This is not the first time Apple tried to gain some support for a subscription TV service though as it also tried to do the same in 2009 and was unable to procure commitments from the industry. Some executives said that Apple’s interest in splitting advertising revenue was one of the sticking points that derailed the negotiations in the first place.
According to another report, Apple was believed to have turned to cable operators in an effort to persuade them to work with the idea but the cable executives “pretty much shut the door” on Apple.
Apple Inc even sought out to have discussions with AT&T and Verizon. Sources at Rogers and BCE (Canadian telecoms) also mentioned being approached by Apple about its TV initiatives and were rumored to have received prototype versions of its much-rumored High-Definition Television (HDTV) set.
It seems that Apple is prioritizing its effort of bringing a streaming TV service to market first before launching its own TV set. Apple is rumored to release this service by Christmas of 2012. This fits a number of speculations of the Apple TV set being released in late 2012. In the meantime, Apple is expected to unveil an update to its $99 Apple TV set-top box as early as next week.