Apple is reportedly looking to skirt the cable companies and strike up deals with HBO, ESPN, Disney, and Viacom to offer their content on a new pay TV service. Rather than distributing content in channels, Apple’s strategy would emphasize apps over cable TV according to a report from QZ.
Sony, Google, and Intel are also trying to score similar deals and might even get their pay TV services up before Apple. However, Apple is also looking to release a TV set as well, in order to control the entire TV-watching experience.
According to the report, Apple has decided that it doesn’t need to get all content providers on board before launching. It just needs to get good enough content to distinguish the product, and then everyone else will hopefully flock over.
One of the biggest hurdles in the negotiations is that most of the networks are scared to strike a deal with Apple without the participation of others. The feeling is that they might kindle the wrath of the cable companies that are paying for their content in bundles, and might get pissed off and drop the channels all together for siding with Apple. And then where would all the money for great shows like Beauty and the Beast, Smash, and What Would Ryan Lochte Do come from?
- Source QZ