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Fed up with Netflix? Frustrated by Hulu Plus? There may be another option available to you by the time Santa Claus comes down the chimney this year if Apple has anything to say about it -- assuming they can get content providers on board.
The New York Post is reporting that Apple is going full-steam ahead with its plans to launch a streaming television service by Christmas 2012, and they’re apparently going to do it with or without the support of content providers.
So what’s the problem? Apparently, Apple wants control of every aspect of the new service, including what price the content is offered at. According to one source familiar with the negotiations, Apple’s stance can be summed up as “we decide the price, we decide what content.”
Or as another media executive puts it: “They want everything for nothing,” which seems to mirror negotiations in the past with publishers and music labels, most of whom eventually came around to Apple’s way of thinking.
“Apple is pitching the idea of offering channels as apps for its devices, including its Apple TV set-top box,” the report reveals. “It’s unclear whether it would group the apps together and charge a fee -- similar to a cable-TV subscription -- or offer the channels on an a la carte basis.”
The latest push is nothing new -- Apple reportedly attempted a similar coup back in 2009, offering “to share in the ad revenue rather than pay a distribution fee like Netflix,” a model that has worked mostly well for rival Hulu Plus.
“They want to create the interface, and they wanted to work with the cable guys to manage bandwidth across the TV and broadband pipeline,” said another source familiar with the talks.
So where does Apple’s fabled television set fit into these plans? According to sources, Cupertino’s first priority is bringing this TV service to life, which makes sense -- get the content first and then offer the product to watch it on.
Follow this article’s author, J.R. Bookwalter on Twitter