Originally Posted by Porchland
Agreed. The dollar amount of per-episode purchasing is not what's holding Apple TV back from wider adoption. Until Apple can come to agreement with the networks on a subscription package to compete with cable and satellite, Apple's TV market will be pretty limited.
My Comcast bill is roughly $90 for cable/DVR and $50 for broadband. I would take a serious look at dropping my cable if Apple had a subscription package for $75 to $100 that included all or nearly all of the shows I watch now, live news, and live sports.
That would be great, but I can't for the life of me figure out how Apple could swing this sort of deal considering the vast differences involved.
For starters, you used a price lower and only slightly higher than your cable TV bill for a solution that, by design, allows for having a local copy that can be moved between devices. Are you suggesting that Apple make it a realtime streaming service like your cable is, sans the on demand content that is ordained by networks to increase viewership and in turn ad revenue?
On top of that, your cable company is your Internet provider and I assume you have no contract. If people start dropping cable TV service, they don't really lower coats in supporting that service or what they pay these networks. The result would likely be a hike in Internet prices.
Then there are the local channels (which people can get OTA anyway, but typically don't bother with) which need local and national ads to support themselves. Is Apple going to offer these stations? If so, do they verify your location via IP address or GPS to keep te parent companies happy?
Finally, do we really this the negotiations are simply on some pricepoint or some fear Apple will end up controlling them? I don't. I think the issue lies in how this will affect the rest of their business and they are wise to want to make any deal with Apple increase their profits, not destroy it.
As cool it would be to have all these idealistic optiona for watching television I have yet to hear an idea that seemed feasible for all parties involved.