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Apple negotiating directly with content providers for new TV product - report

post #1 of 78
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In a bid to break a stalemate in its attempt to release a full-fledged television set, Apple has reportedly brought ESPN, HBO, and Viacom to the table and is negotiating directly with content providers, rather than cable companies.

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As Apple moves closer to releasing its oft-rumored television set, the Cupertino company is said to have altered its go-to-market strategy, bypassing cable companies that have long balked at Apple's terms in favor of direct negotiations with content providers, according to a report published Thursday by Quartz.

The negotiations reportedly center around a new, Apple-branded television set rather than the company's existing Apple TV product. Apple is said to be willing to enter the market even without a majority of the content providers signing on, betting that a small amount of high-quality content will drive enough consumer demand for the product that the rest will have little choice but to follow.Apple's rumored plans to build a television set are said to hinge around content deals. Having made no progress with cable companies, Apple is said to be speaking with content providers directly.

The report suggests that Apple may be willing to go as far as to become a virtual cable company itself, mirroring rumors leading up to the iPhone launch in 2007 that Apple would form an MVNO ? or Mobile Virtual Network Operator - to provide mobile telephony services for its new device. The report notes that Sony, Google, and Intel are considering similar options for their own television strategies.

Apple and Viacom refused to comment specifically on the negotiations, while ESPN's Chris LaPlaca said that "there are no formal discussions taking place" and HBO's Jeff Cusson said they "have no plans to go over the top or to enter these markets in a different way."

Reportedly, an Apple television set would follow the company's iOS paradigm of organizing content around apps, moving away from the traditional channel model. Apple might also offer cross-app search functionality, further abstracting the content from the specific providers.

The report goes on to link recent Apple acquisition of content aggregator Matcha.tv, revealed earlier this month, as well as Apple's rumored $280 million offer for PrimeSense, the Israeli firm whose technology is behind Microsoft's Kinect, to Cupertino's evolving television strategy.

Rumors of an Apple television set have remained for years, but they picked up considerable steam in late 2011, when biographer Walter Isaacson revealed that late Apple co-founder Steve Jobs had said he felt he "cracked" the secret to a simple television set. Apple Chief Executive Tim Cook added fuel to the fire when he said in an interview last year that current television sets make him feel like he's "gone backwards in time by 20 to 30 years."

The company's current initiative is driven by the Apple TV set-top box, offering streaming content from iTunes and other sources like Netflix and Hulu. Apple has steadily added features to that product, and is even expected to enable live streaming television for Time Warner Cable subscribers in the near future.
post #2 of 78

THANK YOU THANK YOU EXACTLY.

 

SCREW the cable and satellite companies. Kill them all.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
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Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
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post #3 of 78

I sadly just got a tv, LG TV, which I love; however, it will be interesting to see how Apple goes about doing this (if it is true). I am pretty tired of the cable company and look forward to satellite once I am done with college. Of course, skipping both would be pretty cool.

 

My LG TV is a smart TV and I think it is much better than Samsung's Smart TV (just my opinion). The issue is just lack of apps and content (I find the same problem with Samsung's TV). I would like to see Apple really change things around, maybe offer a separate box to make any TV similar to a full Apple TV.

post #4 of 78
It's good that they are trying to get around the cable companies but this isn't necessarily just for a TV set. The set top box etc can use this as well. Getting cable out of the mix could change pricing, timing, quality, complete my season and plus options perhaps

A non tech's thoughts on Apple stuff 

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

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A non tech's thoughts on Apple stuff 

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

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post #5 of 78
Get Sunday ticket and I bet a lot of people will get on the AppleTV. Do not let Google get it Apple.
post #6 of 78

Fine except I still want local programming. As for ESPN they don't have all the games for all the sports either. 

 

And, if you get your Internet from the cable companies they still have you by the balls. They can just raise the rates for Internet and potentially screw with your streaming packets when they know it is video from iTunes.

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Life is too short to drink bad coffee.

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post #7 of 78
Quote:
Originally Posted by kozchris View Post

Get Sunday ticket and I bet a lot of people will get on the AppleTV. Do not let Google get it Apple.
I'm guessing you read the report that has Google, and I'd imagine Apple too, negotiating to take over NFL Sunday Ticket when DirectTV's contract runs out next year.
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post #8 of 78
Don't know much about how TV, and the go-to-market strategy, works in The States, but couldn't hey go one step further: talking directly with the studio's who make the programs? I understand that wouldn't work for sports and such, but series, docu's etc, would that work?

Reading up on ESPN, HBO and such now...
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post #9 of 78

The cable companies are f*cked.

post #10 of 78
This is what Apple should do. Even if the Apple virtual cable company is a hobby at first, sign me up.

In other news, Google announces it is thinking of becoming a virtual cable company, followed by Samsung ...
Been using Apple since Apple ][ - Long on AAPL so biased
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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.
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post #11 of 78

For those of you getting excited- did you just bypass this little snippet in the article? 

Quote:
Originally Posted by AppleInsider View Post


Apple and Viacom refused to comment specifically on the negotiations, while ESPN's Chris LaPlaca said that "there are no formal discussions taking place" and HBO's Jeff Cusson said they "have no plans to go over the top or to enter these markets in a different way."

 

I'm all for dealing with the content providers.  If nothing else, just to scare one or two of the cable providers to nut up and sign on with them.

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2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

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post #12 of 78
Originally Posted by kozchris View Post
Get Sunday ticket and I bet a lot of people will get on the AppleTV. Do not let Google get it Apple.

 

Get ANY form of the NFL. They're the one major sport still missing.

 

Oh, and get rid of the effing stupid requirement on some of the Channels now that says you have to have a subscription to cable or satellite to use. Nonsense.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
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Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
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post #13 of 78
Quote:
Originally Posted by Andysol View Post

For those of you getting excited- did you just bypass this little snippet in the article? 

I'm all for dealing with the content providers.  If nothing else, just to scare one or two of the cable providers to nut up and sign on with them.

FWIW there were reports last month on Google, Intel and Sony also trying to negotiate TV streaming rights directly with the providers. It's the next hot thing I guess.
http://online.wsj.com/article/SB10001424127887324348504578610050212447028.html


With Apple's billions I would think they'd have the inside track if they really really want it.
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post #14 of 78
I still wonder if Netflix might not be a good acquisition for Apple ...
Been using Apple since Apple ][ - Long on AAPL so biased
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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.
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post #15 of 78
Quote:
Originally Posted by kozchris View Post

Get Sunday ticket and I bet a lot of people will get on the AppleTV. Do not let Google get it Apple.

 

Quote:
Originally Posted by Gatorguy View Post


I'm guessing you read the report that has Google, and I'd imagine Apple too, negotiating to take over NFL Sunday Ticket when DirectTV's contract runs out next year.

 

That package is going to be massive!  Currently, DirectTV pays $1 Billion a year.  If Google and Apple get into it- you're looking at doubling that or more I'd guess.

 

And for what it's worth- only 2 million subscribe to it @ $250/yr- so a return of $500mil (or a loss of $500mil)- mobile, bragging and advertising excluded of course.

2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
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2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

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post #16 of 78
edit
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post #17 of 78

As long as the content for the AppleTV is delivered by cable companies or by DSL or fiber these companies still have plenty of leverage. There is a whole lot of mischief they could cause if they chose to do so. 

post #18 of 78
Quote:
Originally Posted by Tallest Skil View Post

Oh, and get rid of the effing stupid requirement on some of the Channels now that says you have to have a subscription to cable or satellite to use. Nonsense.

 

Are you actually serious? It may differ depending on who you use but very simple to go into menu settings and edit your favorite channels and choose your channel list and choose not to display certain channels in your guide. I removed all the channels I don't subscribe to as well as about 100 more I can watch but never will. 

post #19 of 78
I have been saying this a few years.

Apple needs a TV show content monthly contract deal which customers sign so Apple can sell them a truly breakthrough AIO TV at a subsidised price. This is the only way Apple can control the whole end-to-end experience. And this is only way consumers can get a truly seamless experience. All of this boxes hanging of your TV crap is the past, not the future.

This is what Apple wants, but more importantly, this is what I want. This is the only way just about anyone can buy a TV, throw out all of their old crap and have one (Bluetooth) remote for their living room, and not some universal remote bullshit.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #20 of 78
Quote:
Originally Posted by gwmac View Post

As long as the content for the AppleTV is delivered by cable companies or by DSL or fiber these companies still have plenty of leverage. There is a whole lot of mischief they could cause if they chose to do so. 

 

Although surely not a popular idea around here, there could be some benefit to negotiate with Google.  Apple content delivered over Google Fiber, if even on a small scale at first, could persuade the cable companies in the right direction.

post #21 of 78

Hope APPLE has learned it's lesson from the books mess. "Content providers" sure looks a lot like publishers and cable companies a lot like Amazon.

 

And we know how that's been going....

post #22 of 78
Originally Posted by gwmac View Post

Are you actually serious? It may differ depending on who you use but very simple to go into menu settings and edit your favorite channels and choose your channel list and choose not to display certain channels in your guide. I removed all the channels I don't subscribe to as well as about 100 more I can watch but never will. 

 

Yeah, that really solves the problem, doesn't it? Yeah, uh huh. I can certainly use said content now, by hiding it, instead of actually being able to use it. 

 

You need to stop replying to me. Your vendetta blinds you to everything.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #23 of 78
Go Apple go! I don't care if they update the AppleTV or if they make a full-fledged television set. I just want to get away from DirecTV (and I love them compared to Dish and Comcast) and get to a la carte pricing. Willing to sacrifice however many chickens is necessary to make this happen.
post #24 of 78
Quote:
Originally Posted by Tallest Skil View Post

 

Yeah, that really solves the problem, doesn't it? Yeah, uh huh. I can certainly use said content now, by hiding it, instead of actually being able to use it. 

 

You need to stop replying to me. Your vendetta blinds you to everything.

Yeah it really does solve your problem since you would never again see a channel you don't subscribe to and have to look at that message again. The only other solution would be to subscribe to the channels so you don't see that error message. Do you expect to be able to watch HBO or other channels where you see this message without paying for them? I gave you a solution you obviously were unaware existed. You are welcome. 

post #25 of 78
Originally Posted by gwmac View Post
Yeah it really does solve your problem since you would never again see a channel you don't subscribe to

 

Not the point being made. Try reading the post.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #26 of 78
Quote:
Originally Posted by mstone View Post

Fine except I still want local programming. As for ESPN they don't have all the games for all the sports either. 

 

And, if you get your Internet from the cable companies they still have you by the balls. They can just raise the rates for Internet and potentially screw with your streaming packets when they know it is video from iTunes.

 

Ahh...but Apple has more than enough $$$ laying around to either buy one of the larger cable and/or internet providers to enter the TV market on their terms.  I wish that would actually happen.

post #27 of 78
Quote:
Originally Posted by enquiry View Post

Although surely not a popular idea around here, there could be some benefit to negotiate with Google.  Apple content delivered over Google Fiber, if even on a small scale at first, could persuade the cable companies in the right direction.

And what, just sell iTV in Mountain View? :P
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #28 of 78
Quote:
Originally Posted by jfc1138 View Post

Hope APPLE has learned it's lesson from the books mess. "Content providers" sure looks a lot like publishers and cable companies a lot like Amazon.

 

And we know how that's been going....

How do cable companies look like Amazon?

post #29 of 78
Quote:
Originally Posted by Freshmaker View Post

Go Apple go! I don't care if they update the AppleTV or if they make a full-fledged television set. I just want to get away from DirecTV (and I love them compared to Dish and Comcast) and get to a la carte pricing. Willing to sacrifice however many chickens is necessary to make this happen.

Like you I also would love a la carte channel selection if (and a very big if) it were priced lower than what I currently pay. But the reality is that a la carte channel selection would result in higher monthly bills not cheaper. We would paying the same amount for the 10 channels we really want as we pay now for the 150 we may not watch. 

 

This short video explains why

http://www.bloomberg.com/video/why-cable-la-carte-pricing-will-never-happen-RRn3sCquSfOrQmCsDG7XEQ.html

 

These also explain why we won't be seeing it anytime soon. 

 

http://www.digitaltrends.com/home-theater/a-la-carte-channels-cable-tv-viewing/

 

http://go.bloomberg.com/tech-blog/2013-01-31-your-cable-bills-going-up-again-but-forget-a-la-carte-pricing/

post #30 of 78
Originally Posted by StruckPaper View Post
How do cable companies look like Amazon?


Illegal collusion and monopolization.

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply

Originally Posted by helia

I can break your arm if I apply enough force, but in normal handshaking this won't happen ever.
Reply
post #31 of 78
Get ready for iWatch.
post #32 of 78
Quote:
Originally Posted by AppleInsider View Post

Reportedly, an Apple television set would follow the company's iOS paradigm of organizing content around apps, moving away from the traditional channel model. Apple might also offer cross-app search functionality, further abstracting the content from the specific providers.

This, IMO is the wrong way to go. What would be the difference with the current model where if you want to watch say "Game of Thrones" you need HBO. If you want "The Waking Dead" you need AMC. If you want "House of Cards" then it's Netflix. "Myth Busters"? You need a subscription to Discovery.

 

The ideal model would be to choose your programs, let's call it "My favorites" and when new episodes come in, a notification can appear on your Apple TV screen and/or Mac and/or iPad and/or iPhone. If you happen to click one of the "My favorites" list then the info page appears with all previously released episodes, plus info that the next new episode is due on YYYY-MM-DD @ HH:MI.

They can keep the current iTunes model for brand new Releases and make them available for rent or sale.

I still can't figure out what they're going to do about live events. NFL, Premier League, MLB, WTA, PGA, UCI, UEFA, FIFA, Cricket, CNN, the Pope's visit etc.

 

The challenges that they face are already enormous in the US. Add to that other countries with unique laws that are in place to protect culture and local content and the difficulty rises exponentially.

post #33 of 78

You don´t reinvent an industry by coping other players. You reinvent it by doing something completely different. That is the Apple way.

post #34 of 78
Quote:
Originally Posted by Ireland View Post

And what, just sell iTV in Mountain View? :P

Actually more Kansas and Missouri (and a little Texas) and less Mountain View. 1wink.gif
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post #35 of 78

I love the idea of shows as apps rather than as lineups on channels.  The natural mental process is to browse for shows rather than browse by channel.  The content providers should love this.  It's really foolish to spend advertising dollars and waste viewer mindshare promoting your three letters (HBO, USA, CNN, etc.).  The only reason they have to promote their call letters so much is because the way TV is set up, you have to go search for their channel first and then their shows.  Nobody really watches a content provider, we all watch a content provider's show.  Do you like Suits because it's on USA or are you on USA because you like Suits?

post #36 of 78
The cable companies will get to keep exclusive rights to channels like HBO but no one wants channels any more they want content. NetFlix and Amazon already have access to some of the content such as Breaking Bsd and now Apple will as well. In the end the cable companies will become ISPs and the obsolete concepts of channels, scheduled programming and inserted ads will vanish into history.
post #37 of 78

I wish Apple could figure out how to get quick channel flipping, which is unavailable through streaming.  That's one advantage of cable.  

 

I just wish we could just simply select on a monthly basis which channels we want and don't want.

 

I wouldn't mind paying $.50 a month for access to a regular cable channel and then $1.50 a month for a premium channel.  There are only so many channels that I'm interested in and I'm sure that I would probably pay less than $50 a month for only what i wanted rather than having to pay $100 for a lot of crap I have no need for.

 

It would be interesting to find out based on a pay per channel, which channels people would actually pay for.  I'm sure some of these channels would go out of business if they realized how many we DON'T want.  Which would free up bandwidth. 

post #38 of 78
Quote:
Originally Posted by mstone View Post

And, if you get your Internet from the cable companies they still have you by the balls. They can just raise the rates for Internet and potentially screw with your streaming packets when they know it is video from iTunes.

 

Tempered somewhat because most markets have more than one Internet service available.

post #39 of 78
Quote:
Originally Posted by drblank View Post

I wish Apple could figure out how to get quick channel flipping, which is unavailable through streaming.  That's one advantage of cable.  

I just wish we could just simply select on a monthly basis which channels we want and don't want.

I wouldn't mind paying $.50 a month for access to a regular cable channel and then $1.50 a month for a premium channel.  There are only so many channels that I'm interested in and I'm sure that I would probably pay less than $50 a month for only what i wanted rather than having to pay $100 for a lot of crap I have no need for.

It would be interesting to find out based on a pay per channel, which channels people would actually pay for.  I'm sure some of these channels would go out of business if they realized how many we DON'T want.  Which would free up bandwidth. 

Assume you like watching pro golf and everything associated with it. Golf channels may not be one of the popular choices and probably aren't. If only 5% of Apple TV viewers are willing to pay for the Golf Channel then it would probably disappear would it not? Some of these "fringe" channels with a small but committed following may only exist because they're included and paid for in a package of channels. In ala carte programming it may not be financially supportable. So you don't get to watch a golf channel.
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post #40 of 78
Rumor being called "a report."

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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