CBS, Disney Consider Apple TV Streaming Deal
9:54 am, December 22nd, 2009, Ed Sutherland
CBS and Disney – two television networks with strong ties to Apple – are considering a plan by the Cupertino, Calif. company to revamp how Americans receive TV programming, according to one report. Apple would like to expand its iTunes service to offer consumers major television content via the Internet.
The proposal would “offer access to some TV shows from a selection of major U.S. television networks for a monthly fee,” the Wall Street Journal reports.
According to the report, CBS could offer along with network shows, CW programming, including “Gossip Girl” and “Vampire Diaries”, both popular downloads at iTunes. The Disney link comes from Apple CEO Steve Jobs’ being its largest shareholder, plus the Apple co-founder’s presence on the Disney board of directors.
Apple could outspend traditional media companies, offering a $2 to $4 monthly fee per subscriber for network television offerings and $1 to $2 per month per subscriber for basic-cable fare, according to the newspaper.
Although CBS and Disney are nibbling at Apple’s proposal, other networks have reportedly spurned the plan, including News Corp., Viacom Inc. and Turner Broadcasting. A concern is Apple’s ala-carte proposal could hurt lucrative bundles which force viewers to buy programming packages.
Another question on networks’ minds is whether Apple will include advertising, a feature that earned $43.4 billion for broadcast and cable providers in 2008.
In November, reports surfaced indicating Apple was mulling a $30 per month “all-you-can-eat” Apple TV service.
The report also provided more details on when Apple could unveil a tablet and its form-factor. The tablet “is expected to be larger than an iPhone but smaller than a laptop computer,” according to the WSJ, citing people “briefed on the product.” Apple could launch the tablet by the end of March.
[Via WSJ, AppleInsider, 9to5Mac]
Posted by Ed Sutherland in News | Comment on this article
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I like the idea and I think the networks would be smart to consider this seriously. At the same time, I think Comcast has so much programming tied up along with it’s own interests in Hulu and On-Demand services that it’s going to be hard for Apple to build a strong service.
Also, I think most entertainment companies are scared to death of Apple – as much if not more than Comcast.
D.Reese, on December 22nd, 2009 at 6:58 pm