Apple's content negotiation tactics have 'alienated' cable providers & networks - report
Apple has allegedly taken a hardline approach in negotiating with content owners for a potential $30-per-month streaming television service --?a strategy that may have backfired on the company, a new report suggests.
Citing people familiar with the negotiations, The Wall Street Journal reported on Thursday that Apple's offers were stunningly low, even to close partner Disney, leaving content owners feeling "alienated." Of particular issue was said to be Apple's demand to lock in, for several years, monthly rates per viewer, a major change from how TV networks traditionally operate and increase profits.
Apple's negotiations were said to be handled by Eddy Cue, the company's senior vice preside of Internet Software and Services. Disney, in particular, was said to be eager to sign up for an Apple streaming service, until they heard the proposed terms.
Disney's lack of interest is particularly noteworthy because the company's CEO, Bob Iger, serves on Apple's board of directors, and the two companies have worked closely together for years, dating back to Disney's acquisition of Pixar from Apple co-founder Steve Jobs in 2006.
Unsurprisingly, other major content owners weren't receptive to Cue's pitch either. The Journal said Apple's negotiations with both 21st Century Fox and CBS failed to gain traction.
Apple's alleged plans called for a $30-per-month service that would feature both live channels and an on-demand library of content.
Talks between Apple and content owners have been ongoing for some time. The company originally hoped to announce a streaming TV service at WWDC 2015 and launch it alongside the fourth-generation Apple TV.
When talks collapsed, Apple pushed forward and released new Apple TV hardware and software, with a dedicated tvOS App Store, last fall.
Citing people familiar with the negotiations, The Wall Street Journal reported on Thursday that Apple's offers were stunningly low, even to close partner Disney, leaving content owners feeling "alienated." Of particular issue was said to be Apple's demand to lock in, for several years, monthly rates per viewer, a major change from how TV networks traditionally operate and increase profits.
Apple's negotiations were said to be handled by Eddy Cue, the company's senior vice preside of Internet Software and Services. Disney, in particular, was said to be eager to sign up for an Apple streaming service, until they heard the proposed terms.
Disney's lack of interest is particularly noteworthy because the company's CEO, Bob Iger, serves on Apple's board of directors, and the two companies have worked closely together for years, dating back to Disney's acquisition of Pixar from Apple co-founder Steve Jobs in 2006.
Unsurprisingly, other major content owners weren't receptive to Cue's pitch either. The Journal said Apple's negotiations with both 21st Century Fox and CBS failed to gain traction.
Apple's alleged plans called for a $30-per-month service that would feature both live channels and an on-demand library of content.
Talks between Apple and content owners have been ongoing for some time. The company originally hoped to announce a streaming TV service at WWDC 2015 and launch it alongside the fourth-generation Apple TV.
When talks collapsed, Apple pushed forward and released new Apple TV hardware and software, with a dedicated tvOS App Store, last fall.
Comments
I can't think of anything besides the Mickey watch face.
Really, since the early days of iTunes movies and TV shows they haven't done anything special.
Apple needs nothing from the cable providers. The less they work with them, the better
What would be interesting if Apple could add an antenna to Apple TV for to pull in live HDTV channels which are mandated by law. ABC, NBC, CBS. That would help secure sine live sports programming
www.silicondust.com/hdhomerun/
There is a (albeit rather expensive) ATV app called "Channels" that works with this; and an iOS version for iPhone/iPad.
Maybe SiliconDust is an acquisition target by AAPL. It does seem like maybe this technology is a standalone box, not an addition to ATV. But who knows - maybe an ATV with a tuner system in it is a separate model.
I'm paying $10 per month for Netflix and honestly, I would not pay more than that... when I only watch one TV episode a night before bed, and maybe an occasional movie. Maybe I sound cheap, but the nickel-and-diming these days is becoming overwhelming to manage. No wonder I have no money left over.
Maybe Apple can turn the tides and make TV awesome again?
The studios see Apple's cash and want a sweeter deal than they are currently getting from others. Locking in rates for a few years means studios can't gauge customers every year nor force customers to have programming they do not want. The WSJ will not report this side of the story because it would make Apple look good. Having Apple look good is bad.
Disney was eager. Really? Wasn't it reported Disney wanted ESPN packaged with any deal with Apple even though Apple was not interested in ESPN? Any sweet deal from with provides studios with a stronger negotiating tactics with others. Rates would rise, which would cause customers to pay more. We know the DOJ would blame Apple not the studios for higher customer fees.
So, keep up the hardball negotiating tactics, Eddy! The longer the studios holdout due to greed, the more time you have to get your own original programming lined up, which will enable you to move forward without studio programming.
EDIT: Yes they did.
“We’re not in the business of trying to create TV shows,” Cue said. “If we see it being complementary to the things we’re doing at Apple Music or if we see it being something that’s innovative on our platform, we may help them and guide them and make suggestions. But we’re not trying to compete with Netflix or compete with Comcast.”
Here is the problem, most of the large cable operators own most of the good content. Apple does need them more than they need Apple. Personally if Apple could land a deal with Discovery Networks, I would be happen and drop what I have and switch over to Apple and Discovery. Discovery has the worlds largest view audience for their combine content with a little over a 1B viewers. This could be a huge win for apple to land them. But I understand is Discovery is not interest in streaming all their content especially the most popular one.