Report: Apple Puts Live TV Service on Hold

9 Dec 2015 | Author: | No comments yet »

Apple Ditches Live TV Plans For Now.

Speaking at Business Insider’s IGNITION conference in New York, CBS CEO Les Moonvees said Tuesday that Apple has put its plans to create a live-TV subscription service “on hold.” Apple reportedly ran into difficulty negotiating deals with companies looking for additional money, according to a Tuesday report from Bloomberg. Apple has suspended an initiative to bring a live television service to its AppleTV device, frustrating hopes that users could soon forego basic cable for an Apple-sponsored bundle.With or without Apple’s AAPL -2.57% permission he offered the press an update on the company’s not-so-secret plans to do an end run around your local TV provider and stream live television over the Internet.Apple’s plan to sell a package of about 14 channels for $30 to $40 a month has run into resistance from media companies that want more money for their programming.

Apple’s development of a TV subscription service was first reported by the Wall Street Journal in March, with a then-target launch date of September, coinciding with the release of the new Apple TV. Moonves is just the latest TV executive to talk out of school about Apple’s on-again, off-again plans to fix the TV experience that Tim Cook once described as “stuck in the seventies.” Nov. 2009. Apple Inc has suspended plans to offer a live Internet-based television service and is instead focusing on being a platform for media companies to sell directly to customers through its App Store, Bloomberg reported on Tuesday. Apple’s iTunes Pitch: TV for $30 a Month, All Things D. “Apple has told industry executives it wants to launch the service early next year.” March 2015.

To break the logjam, Apple would either have to charge more, or the media companies would have to accept less. “This will happen,” Mr Moonves said. “It has four major networks and 10 cable networks, let’s say, and the price point will be in the $30s, $30-$35, $40 maybe. Another apparent sticking point was Apple’s desire to include local TV broadcasts as part of its service, requiring additional negotiations because many local stations are franchised or owned through an affiliate system. “They’ve had conversations on it, and I think they pressed the hold button,” said Moonves, speaking at the IGNITION conference. Apple hasn’t given up on the effort all together, but it looks like customers’ hopes for a 2016 launch isn’t going to happen. “We ultimately believe Cook & Co. need to offer content and eventually go down the streaming-TV/cord-cutting path given the changing dynamics in the consumer media landscape,” Daniel Ives, an analyst with FBR & Co., wrote in a note.

With streaming music already in its back pocket and an enhanced Apple TV now finally released, the stage was set for Apple to ink its streaming TV deals heading into 2016, although it appears negotiations/price points forced Cook to walk away from the negotiation table for now on this potentially game-changing endeavor. Bloomberg said Apple had not given up entirely on releasing an Internet TV service, which has slowly been pulling viewers away from traditional television service providers. That approach may make it harder for Apple’s set-top box, which was released in October, to stand out in an increasingly crowded market where Roku, and Google also offer customers the ability to buy subscriptions to television programming.

Apple Subscription TV Service Won’t Be Announced Next Week. re/code. “Industry executives predict Apple’s Web TV offering may not launch until later this year, or in 2016.” June, 2015. Bloomberg notes that typical cable subscriptions cost $85 per month, so Apple’s aim to more than halve that cost for consumers has been controversial among media companies. Apple effectively worked with music executives to get its streaming music service off the ground, but pushback from media networks has been much more fraught. In addition, cable, satellite and phone providers like Comcast, Dish Network and Verizon Communications are selling smaller, less expensive bundles of channels, sometimes delivered over the internet. Apple’s decision to put its TV plans on hold is the latest challenge in a years-long drive that also included an effort to partner with cable companies.

Speaking at its launch event, Apple CEO Tim Cook said that “the future of television is apps.” A TV-streaming service in the mold of Apple Music would be a total game-changer in the world of television, but in the meantime, we’ll have to settle for apps. Fortune. “We believe Apple’s eventual content offering will include the majority of the network channels plus major cable offerings like ESPN, AMC, TNT, and TBS.” Dec. 2015.

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