Noted: Apple Inc.’s magical touch changed the music industry forever – so why not TV? The company behind the iPhone and iTunes is working on a plan to let consumers subscribe to only the TV channels they want, reports the Wall Street Journal in “Apple TV-Service Proposal Gets Some Nibbles.”
The newspaper, citing “people familiar with the matter,” said CBS Corp. and Walt Disney Co. are considering Apple’s plan to offer TV subscriptions over the Internet for a monthly fee. Apple would pay the major networks like CBS and ABC about $2 to $4 a month per subscriber. Basic cable networks might get $1 to $2 per month. A “best of television” package could cost $30 a month. Apple reportedly hopes to introduce the service in 2010.
“If Apple signs up enough networks to launch a viable service — still a very big if — it could ultimately alter the economics of the television business. The service could undermine the big bundles of channels that cable, satellite and telecommunications companies, including Comcast Corp. and DirecTV Inc., have traditionally sold in packages to subscribers.”
It’s an interesting, but not unexpected move by a company that doesn’t offer TV service. Right now, Time Warner Cable customers are facing the possible loss of Fox TV shows as negotiations between the cable company and network hit a wall and the two began publicly bickering about money. Read the rest of this entry »