Apple Haggles With Content Providers Over Pricing Of Its Apple TV Subscription Service
With Apple planning to launch its new Apple TV this September, a recent rumor suggests that the company run into a roadblock with content providers in agreeing with the price for its TV subscription service. The rumor claims that Apple wants to charge $40/month for its TV subscriptions service, but the content providers believe that Apple's pricing is too low.
The price Apple wants to charge consumers would be much higher than a subscription to HBO Go, Hulu, Netflix or Sling, but that is still not enough for content makers, who are asking for more cash. The Information's Jessica Lessin reports that broadcasters are preventing the streaming service from debuting with the new Apple TV next month because the two sides still cannot agree on a price.
There's still a big gap between the price media companies want for their TV channels and the roughly $40 a month Apple wants to charge consumers. Something has to give.
Another significant problem, the report claims, is Apple's lack of network infrastructure across the United States to provide a smooth streaming experience to viewers. If both of those issues can be resolved, the service is set to make a debut sometime in 2016. It is expected to offer content from major networks like ABC, CBS, Fox, ESPN, and others.
While major networks like NBC, CBS, and Fox have balked at Apple's planned pricing options, the company still plans to go ahead and reveal the device at the September 9 keynote. Apple will focus on integration with HomeKit that makes Apple TV the hub for the connected home instead of its TV service.
The new Apple TV is rumored to come with an all-new design, Siri integration, a new controller, and support for third-party apps.
Source: The Information