or Connect
AppleInsider › Forums › Mobile › iPod + iTunes + AppleTV › Apple's TV service would pay networks to allow ad skipping, report says
New Posts  All Forums:Forum Nav:

Apple's TV service would pay networks to allow ad skipping, report says

post #1 of 66
Thread Starter 
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.

appletv-130619-1.jpg


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??
post #2 of 66
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.

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.
post #3 of 66
Quote:
Originally Posted by Brian Jojade View Post

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 View Post

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?

post #4 of 66
I would like to be able to buy seasons of specific shows and / or events rather than an entire channel assuming the cost was reasonable.
Edited by digitalclips - 7/15/13 at 5:29pm
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
Reply
post #5 of 66
It wasn't too many years ago that a standard commercial break was 2 min, 2 sec long. Today, there are often 4 and 5 minute commercial breaks. Hulu Plus was great when their commercials were just a quick 15 second interruption, but now you get a minute or even two on popular shows on Hulu plus and thanks to technology, you CAN'T skip the commercials on Hulu. I'm paying $8 a month for Hulu Plus and honestly, the no-skip commercials are starting to grate on me.

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.
post #6 of 66

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! :)

post #7 of 66
Quote:
Originally Posted by MikeJones View Post

Then why am I being charged for cable, Hulu Plus or AppleTV content if the commercials are paying for the content?

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?

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?)
post #8 of 66
Quote:
Originally Posted by Robert Mark View Post

It wasn't too many years ago that a standard commercial break was 2 min, 2 sec long. Today, there are often 4 and 5 minute commercial breaks. Hulu Plus was great when their commercials were just a quick 15 second interruption, but now you get a minute or even two on popular shows on Hulu plus and thanks to technology, you CAN'T skip the commercials on Hulu. I'm paying $8 a month for Hulu Plus and honestly, the no-skip commercials are starting to grate on me.

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.

And you pay for HBO on top of what you pay for cable. So that argument doesn't hold water.
post #9 of 66
Quote:
Originally Posted by Pendergast View Post


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! :)


Edited by christopher126 - 7/15/13 at 3:42pm
post #10 of 66
I'd pay double to a service ($8x2) if there were no ads and more content, sure.
post #11 of 66
From my view... Apple is trying to bypass every TV station in the world....

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
post #12 of 66
Quote:
Originally Posted by Attewell View Post

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!

 

:)

post #13 of 66
Quote:
Originally Posted by MikeJones View Post

Then why am I being charged for cable, Hulu Plus or AppleTV content if the commercials are paying for the content?

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?

There are other costs you know, Hulu doesn't get to you by magic.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #14 of 66
I hope if Apple does something with television that is more innovative than a settop box you pay to have skip commercials. That is simply copying Dish's bad idea with permission from the networks .

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.
post #15 of 66
Quote:
Originally Posted by Attewell View Post

From my view... Apple is trying to bypass every TV station in the world....

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

Do you have any idea how much a paid subscription is going to be? HBO alone is $15.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #16 of 66
Quote:
Originally Posted by rednival View Post

I hope if Apple does something with television that is more innovative than a settop box you pay to have skip commercials. That is simply copying Dish's bad idea with permission from the networks .

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.

Problem is that those networks that do don't like are owned by the ones you do.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #17 of 66
Quote:
Originally Posted by christopher126 View Post

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! 1smile.gif


I cut my cable 5 years ago! 1smile.gif

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!!!
post #18 of 66
If you have to have your full-time crap cable channels, then commercials pay for you to watch. If you are only interested in the networks, then over-the-air tv is free and with a digital recorder/tuner you can skip commercials when you watch them. I haven't watched commercials in years, and I don't have cable. EyeTV. Plex works with EyeTV recordings and some TV's have Plex. And Plex is free. Unless you are more than 50 miles away from tv stations, skip cable. All of the great programs on HBO, Showtime, etc, can be watched in marathon mode a year later on Netflix. It's better to watch that way, no wondering what will happen next week. DBS satellite systems can pick up most sports events without a subscription. But then, how much can you watch?
Eph nMP, rMBP, MBA, Minis
Reply
Eph nMP, rMBP, MBA, Minis
Reply
post #19 of 66
Dup post
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #20 of 66
Dup post
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #21 of 66
Quote:
Originally Posted by christopher126 View Post

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! 1smile.gif


I cut my cable 5 years ago! 1smile.gif

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.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #22 of 66
Quote:
Originally Posted by christopher126 View Post

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! :)

 

I have suggested Apple buy Dish multiple times to only be laughed at. Glad to see thta there is someone else a little crazy too :)
post #23 of 66
Quote:
Originally Posted by digitalclips View Post

I would like to be able to by seasons of specific shows and / or events rather than an entire channel assuming the cost was reasonable.

I'm generally the same way although for sites thing like HBO or Showtime where I watch several shows but don't generally rewatch I would pay for the channel. I just don't what to have to have to pay for basic cable as well.

As the cost of shows needs to come down, quality up to 720p, etc. not to mention complete my season on all titles, no more two year delays and no more splitting features between multiple 'box sets' (or give us credit for the episodes bought via season etc so we can just 'complete' the box set for a small price)

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
post #24 of 66
Quote:
Originally Posted by Pendergast View Post

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?)

If I could get the full offerings commercial free inside the videos (banners etc on the page I don't care either way) I would happily pay $15/20 a month. If they could get prime titles like HBO and Showtime within the week on the same times Id go $30 easy.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
post #25 of 66
Quote:
Originally Posted by bmason1270 View Post

I have suggested Apple buy Dish multiple times to only be laughed at. Glad to see thta there is someone else a little crazy too 1smile.gif

Is it for sale?
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #26 of 66

<QUOTE>While commercials pay for programming a cable company has a network of coaxial cable it needs to build and maintain and employees to do that, commercials don't pay for that. It's not as simple as one might think it is.</QUOTE>

 

If you don't have cable and you use an antenna, you still have to maintain the antenna and cable. It costs me about $10/year to do that. A lot less than a greedy monopolistic cable cabal. I have had an antenna since the early 1970's.

Eph nMP, rMBP, MBA, Minis
Reply
Eph nMP, rMBP, MBA, Minis
Reply
post #27 of 66

But Netflix is the same amount and no commercials!!!

And I also use Hulu Plus on a Roku


Edited by mwhiteco - 7/15/13 at 4:29pm
post #28 of 66
Quote:
Originally Posted by mwhiteco View Post

But Netflix is the same amount and no commercials!!!

 

But in many cases one has to wait almost a year for programming. In many cases Hulu is like VOD. I would watch episodes of Revolution a day after it aired live.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #29 of 66
Quote:
Originally Posted by bmason1270 View Post

I have suggested Apple buy Dish multiple times to only be laughed at. Glad to see thta there is someone else a little crazy too 1smile.gif

It is a tad laughable because they wouldn't get the content deals with the package. So they would have to arrange that and it would be basically the same work to just work better deals for their store. Like getting files upp'd in quality, lowered in price and quicker on release dates.

As I posited in another discussion forum perhaps what they are working on a deal that would allow them to offer streaming only access at the same time as OTA for season passes that add a premium for the privilege. Folks might be willing to add say $5 to a pass if it let them stream the episode on an iPad or Apple TV during that 12-18 hour period before downloading kicks in. Especially if the overall price of passes comes down. They are rather ridiculous in price given that its often the same as disc sets that go in set for as much as 70% off all the freaking time.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
post #30 of 66
Quote:
Originally Posted by charlituna View Post

They are rather ridiculous in price given that its often the same as disc sets that go in set for as much as 70% off all the freaking time.

But remember that it's the retailer that puts them on sale.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #31 of 66
Quote:
Originally Posted by dasanman69 View Post


Is it for sale?

 

Everything is for sale for the right price. But, no, Dish is curently not up for sale. But my point in Apple pursuing Dish is not just for the TV distribution, it would also be for their valuable spectrum and the instant national coverage. For Dish to go the Cable Box route they have to eeither strike deals with the studios (tried and failed) or go cable company by cable company.
post #32 of 66
The basic fact is we are being gouged by COMCAST and the companies they buy content from. I thought we lived in a country where we have choice? If we have so much choice why can't I pay to have the commericials removed and pick only those channels I want to watch? The cable conglomerates advertise 200 channel line ups, of course failing to mention that several dozen of these kepp replaying the same tired old re-runs of Die Hard to name one of a long list of tired old movies like they are brand new!. I mean why do I have to pay $100 a month just to watch the same boring old re-runs and be put thru 17mins of commericail every hour. There are oly really perhaps 5 channels I watch to get at interetsing and new content BBC, IFC, ESPN, SCI-FI to name 4 - the rest are pretty much garbage being subsidized by our need to get at these top 10 or so.

Originally Posted by Rickers - 2014

Cook & Co will bury Apple.  They can only ride Steve's ghost for so long.  Steve == Apple and Apple == Steve.  

Reply

Originally Posted by Rickers - 2014

Cook & Co will bury Apple.  They can only ride Steve's ghost for so long.  Steve == Apple and Apple == Steve.  

Reply
post #33 of 66
Quote:
Originally Posted by charlituna View Post


It is a tad laughable because they wouldn't get the content deals with the package. So they would have to arrange that and it would be basically the same work to just work better deals for their store. Like getting files upp'd in quality, lowered in price and quicker on release dates.

As I posited in another discussion forum perhaps what they are working on a deal that would allow them to offer streaming only access at the same time as OTA for season passes that add a premium for the privilege. Folks might be willing to add say $5 to a pass if it let them stream the episode on an iPad or Apple TV during that 12-18 hour period before downloading kicks in. Especially if the overall price of passes comes down. They are rather ridiculous in price given that its often the same as disc sets that go in set for as much as 70% off all the freaking time.

 

They might have to work new deals but Direct TV has changed hands several times and I don't think anyone lost any service during any sale transaction. It is not the same as starting from scratch with the networks. I always thought that the "season pass" was a terrible model. Far to overpriced for a show. The value just isn't there if you like several series, plus you lose the discovery capability with it. Im not going to pay for a episode or a season pass of "Duck Dynasty" becasue a friend said it is wacky. Whatever Apple does with TV flipping through channels and being able to discover things, because it is a buffett, will be vital.
Edited by bmason1270 - 7/15/13 at 4:51pm
post #34 of 66

I can haz no ad TV?  Want!

Sent from my iPhone Simulator

Reply

Sent from my iPhone Simulator

Reply
post #35 of 66
Instead of microtransaction-based skipping, why not just have two tiers like iTunes Radio?

One with ads, one without ads.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #36 of 66
Quote:
Originally Posted by Pendergast View Post

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?)
The trouble with that argument though is that no one ever gives up the numbers and the numbers can easily be fudged. We actually have nothing but the word of those in charge as to what things actually cost.

Given that Netflix can create original content of the same level of quality as HBO and still only charge people $8.00 a month flat fee, there is a strong argument that cable TV has been gouging us for years and years.
post #37 of 66
Quote:
Originally Posted by Gazoobee View Post

The trouble with that argument though is that no one ever gives up the numbers and the numbers can easily be fudged. We actually have nothing but the word of those in charge as to what things actually cost.

Given that Netflix can create original content of the same level of quality as HBO and still only charge people $8.00 a month flat fee, there is a strong argument that cable TV has been gouging us for years and years.

Netflix didn't go out and put cables up on poles nor did they send a technician to your house to wire it up, nor do they have live support. How many more employees does a cable company have over Netflix?
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
Reply
post #38 of 66
Quote:
Originally Posted by mwhiteco View Post

But Netflix is the same amount and no commercials!!!


And I also use Hulu Plus on a Roku

Netflix is mostly back catalog stuff.
post #39 of 66
The way I see it, television is somewhat analogous to music albums pre-iTunes. The individual channels (tracks) are lumped together in packages (albums). Some channels are more popular (singles) while others are essentially filler.

Packages are currently as overpriced as $16 albums back in '99.

It would be awesome if you could subscribe to individual channels for anywhere between $0.99 to $4.99 per month (based on popularity), or "Complete my Package" for, say $10-30 a month (cheaper than subscribing to all individually).

Packages could be grouped by subject matter (Sports, Political, Science, Culture, Comedy, Movies, etc). So you could mix and match, or subscribe to whole packages.

Of course, the music industry caved because of Napster and piracy. Are torrents widespread enough to provide motivation, or are DVRs cutting into ad revenue enough? We'll see.
post #40 of 66
Quote:
Originally Posted by Pendergast View Post

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?)

Instead I would rather pay the real cost for the amount of TV that I watch, so maybe not a set amount each month but rather I pay for every commercial I skip. Granted I only watch maybe 4-5 hours a month on a big movie month.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPod + iTunes + AppleTV
AppleInsider › Forums › Mobile › iPod + iTunes + AppleTV › Apple's TV service would pay networks to allow ad skipping, report says