By Joe Arico | Fri Mar 02, 2012 11:47 am
Apple plans to launch a television streaming service by the end of the year, aiming to replace traditional cable offerings and digital subscription companies like Netflix and Hulu.The Cupertino, Calif.-based company is in negotiations with various content providers, but has been unable to come to any agreements on how it should share the programming, according to the NY Post. Apple is approaching companies with a "we decide the price, we decide what content" offer, which isn't wooing potential partners.
Apple reportedly wants to offer channels as apps for its devices, but content providers are likely not pleased with the way the company plans to share revenue. The tech giant attempted to make similar deals with providers a few years ago, but talks eventually broke down because Apple did not want to pay for a license to the content, offering to share money made from advertising dollars instead.
Apple and content providers have much to discuss before the programming is offered in any capacity, and it's unclear whether the channels would be offered as individual apps or if customers will need to buy them in bundles.
In addition, the companies will have to agree whether to offer content at a one-time cost with advertising, or charge a subscription fee.
In the past, Apple has run into resistance from music labels and publishers as the company attempted to get the rights to offer content while doing so in its own way. The company eventually won over its book and music partners, leading to the success of iTunes and iBooks. However, even with the overwhelming popularity of those services on its resume, Apple has run into its most stubborn opponents yet.
Film and TV entertainment providers have shown a resistance to the digital revolution, leaning instead on offering physical copies of their content after its aired on TV or made its way through the movie theatre. As digital distribution emerges as the preferred way to offer video content and studios, cable channels and the networks are all looking for a way to cash in, while not suffering any financial drop off from the physical medium.
Apple is unlikely to bend its demands to appease content providers, especially if it can get some to agree to its terms. As a result, Apple's new streaming service may be a bit thin on content if it launches later this year, as the company continues its "stare down" with providers, who hold out to see which side blinks first.
Wed Feb 29, 2012 1:19 pm | By Publishers attempted to reassert control over the e-book marketplace to charge higher e-book prices, and Amazon is pushing back hard. But as all parties jockey for control, where does this leave consumers and authors?
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Tue Feb 28, 2012 12:47 pm | By Struggles over the sale and distribution of digital books are wreaking havoc on the publishing industry, and amid all the confusion, one question continually surfaces: Are e-books fairly priced?
Mon Feb 27, 2012 4:07 pm | By Best Buy cut the iPad 2's price by $50, an unusual move signaling the iPad 3's release is likely imminent.
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Editorials & Opinion By Kate Knibbs
Tech leaders gathered at the Mobile World Congress in Barcelona, while Google's controversial privacy policy went into effect. 
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