Apple's TV service would pay networks to allow ad skipping, report says
Adding to rumors of Apple's supposed set-top cable box plans, a report on Monday claims the company is in the thick of talks with media executives over a "premium" level of the alleged service that would allow users to skip ads entirely.
Citing people familiar with the ongoing discussions, The Wall Street Journal's Jessica Lessin reports that Apple is pitching a system that would have it pay media companies for the lost revenue every time a viewer skips a commercial.
According to the report, Apple recently informed networks about the "premium" version of the as-yet-unannounced service, which would theoretically have users of the proposed service pay Apple for the ability to skip ads.
Lessin points out that, while the system has yet to be detailed, similar offerings found heavy resistance from broadcasters. For example, Dish Network launched an ad-skipping technology in 2012, and was subsequently sued for its efforts.
Apple is already seeing resistance from cable providers over its streaming services. When HBO launched the HBO Go app for Apple TV, some cable and satellite companies pushed back by refusing to authenticate the app for streaming.
With the advent of the DVR, however, an increasing amount of America's television-watching public are fast-forwarding through commercials. This could give Apple some leverage in negotiations, though details regarding the talks are few and far between.
Rumors of an Apple-branded set-top cable box have been floating around the Web for nearly one year, with initial reports of the company's alleged plans coming in August 2012. Unlike DVRs, which store content on-site, Apple's rumored system would be cloud-based, meaning enhanced viewing flexibility and data handling.
Fanning the flames of an Apple partnership with at least one cable company, currently thought to be Time Warner, both CEO Tim Cook and SVP of Internet Software and Services Eddy Cue attended this year's Sun Valley conference and met with a number of media firms. The event, hosted by New York-based investment bank Allen & Co., brings together moguls from the media and tech industries for four days of lectures, discussions, and networking.
When reporters at Sun Valley asked Cue about possible discussions with cable providers, the Apple executive said, ?There are cable companies here??
Citing people familiar with the ongoing discussions, The Wall Street Journal's Jessica Lessin reports that Apple is pitching a system that would have it pay media companies for the lost revenue every time a viewer skips a commercial.
According to the report, Apple recently informed networks about the "premium" version of the as-yet-unannounced service, which would theoretically have users of the proposed service pay Apple for the ability to skip ads.
Lessin points out that, while the system has yet to be detailed, similar offerings found heavy resistance from broadcasters. For example, Dish Network launched an ad-skipping technology in 2012, and was subsequently sued for its efforts.
Apple is already seeing resistance from cable providers over its streaming services. When HBO launched the HBO Go app for Apple TV, some cable and satellite companies pushed back by refusing to authenticate the app for streaming.
With the advent of the DVR, however, an increasing amount of America's television-watching public are fast-forwarding through commercials. This could give Apple some leverage in negotiations, though details regarding the talks are few and far between.
Rumors of an Apple-branded set-top cable box have been floating around the Web for nearly one year, with initial reports of the company's alleged plans coming in August 2012. Unlike DVRs, which store content on-site, Apple's rumored system would be cloud-based, meaning enhanced viewing flexibility and data handling.
Fanning the flames of an Apple partnership with at least one cable company, currently thought to be Time Warner, both CEO Tim Cook and SVP of Internet Software and Services Eddy Cue attended this year's Sun Valley conference and met with a number of media firms. The event, hosted by New York-based investment bank Allen & Co., brings together moguls from the media and tech industries for four days of lectures, discussions, and networking.
When reporters at Sun Valley asked Cue about possible discussions with cable providers, the Apple executive said, ?There are cable companies here??
Comments
TV companies should love this, as they still get their revenue stream. Advertisers should love this because they aren't paying for an ad that is skipped over.
Users will whine about this because they want everything for free and think paying for their entertainment is absurd.
Quote:
Originally Posted by Brian Jojade
Commercials pay for the programming. If you don't want to sit through a commercial, having the option to pay to skip it makes complete sense.
Then why am I being charged for cable, Hulu Plus or AppleTV content if the commercials are paying for the content?
Quote:
Originally Posted by Brian Jojade
Users will whine about this because they want everything for free and think paying for their entertainment is absurd.
Or they will just find it absurd to be double-charged just to not see commercials? For example, I pay for Hulu Plus and yet still have to watch commercials. Where is the money that I and others are paying going to if not to pay for the programming?
Yet, HBO has never had commercials and they seem to do just fine. They have enough cash on hand to create The Sopranos, and Game of Thrones, etc.
I don't mind watching commercials if the TV is free. I don't mind paying a cable company $60+/mo. if there are no commercials.
I do mind paying $60+/mo. to my cable company AND having to sit through inane commercials!
I cut my cable 5 years ago!
You're not paying the full price though. The subscription amount pays for part, and the commercials pay for the other part.
Would you rather Hulu Plus cost (double? Triple?)
And you pay for HBO on top of what you pay for cable. So that argument doesn't hold water.
Quote:
Originally Posted by Pendergast
And you pay for HBO on top of what you pay for cable. So that argument doesn't hold water.
I wish I could only pay for Formula One and view it online. Same with Tennis, Golf and well that's about it! Maybe Ironman.
I would gladly do this and watch it via my ATV.
Fingers crossed! It's coming.
P.S. Couldn't Apple buy one of the Sat TV networks and just bypass all the greedy regional cable companies. How many Apple customers would switch to an Apple TV provider? All of them?
Then the set top box could be an AppleTV...All problems solved!
It will provide TV viewing on a on-demand basis.. with 2 options
- with adverts inserted to local area/country, time demographic, and program being viewed
- without adverts, paid subscription..
This is what Apple CEO said, when he said "the model hasn't changed since 1960's"
This will open up even more TV to rest of world.. than what is currently provided
Quote:
Originally Posted by Attewell
From my view... Apple is trying to bypass every TV station in the world....
I hope so....I detest our cable company! I hate the clunky box, their clumsy interface and crappy cables everywhere! Ugh! It's so 90's!
There are other costs you know, Hulu doesn't get to you by magic.
I am also fine with my clunky remote so a new interface isn't that big of deal for me.
What I am not fine with is paying for shopping channels and other networks I never watch. If Apple can find someway to make channels like apps, so I pick and choose the ones I want and can remove them whenever, then they are onto something. Even better if I can pay extra to have no commercials.
I did not get commercial skipping when Dish did it either. It really doesn't bother me to skip commercials on my DVR using my remote, so paying for commercial skipping is less than interesting to me. It's pointless.
Do you have any idea how much a paid subscription is going to be? HBO alone is $15.
Problem is that those networks that do don't like are owned by the ones you do.
Nice. I am cutting mine this fall. Aereo launches in Tampa and we rarely view other channels aside from local networks. I tried an indoor antenna but never got a DVR and we never watch live tv. So....come on Aereo!!!
The $60 is for the cable company's operating costs. Cable networks are expensive to build and maintain. Ad revenue goes to the channels not the cable company.