Steve Jobs might’ve had Apple’s TV revolution all figured out, but the TV industry sure doesn’t want to let it happen–at least not on Apple’s terms.
On Wednesday, the Wall Street Journal brought word that Apple is negotiating with cable companies on some sort of set-top box for live TV and other content. “The talks represent Apple’s most ambitious crack at infiltrating the living room after years of trying,” says the Journal.
But then, the Journal adds this:
Apple doesn’t appear to have reached a deal with any cable operators. One obstacle may be the reluctance of operators to let Apple establish a foothold in the television business.
So basically, the very thing that Apple wants to do–get into the TV business–is considered an “obstacle” by the companies that Apple’s trying to work with. Sounds like those negotiations are going pretty well!
This is not surprising at all. For years, Apple has tried to plant the seeds of TV revolution, only to get stonewalled by TV networks, movie studios and service providers, who’d rather not disrupt their existing businesses.
Yet every so often, we see another story proclaiming that Apple is super serious about negotiating, like, for real this time, guys. As TechCrunch’s Ryan Lawler notes, some outlets have a short memory. So here’s a refresher of Apple’s many attempts to make TV inroads, none of which have come to fruition:
Munster believes that Apple will eventually offer a monthly subscription offer for TV shows on iTunes. At a cost of $30 to $40 a month, he said the company could offer unlimited access to content from network and cable providers. If the Cupertino, Calif., company were to offer a subscription model, he believes it would replace a consumer’s cable bill.
A cheap TV service that lets you cancel your bloated cable bill? And all Apple needs is for cable companies and TV networks to sign on? What could go wrong?
Apple is on the cusp of launching a “a new far reaching cloud-based service” focused on video, writes Jefferies analyst Peter Misek in a big report this morning.
Misek says Apple will use its new massive data center in North Carolina to offer an advanced web-based video subscription product that rivals Netflix.
Not sure what the statute of limitations is on cusps, but 14 months later, I think we can rule this report bogus.
“As part of Apple’s roll-out of cloud video services (and eventually an iTV), we believe Apple has unannounced deals with all/most of the studios/TV networks that are similar to the subscription streaming deal between Amazon and CBS.”
That was a year ago. Still waiting for the big announcement.
From the beginning, the 99-cent rental struggled for traction. Major television studios, including Warner Bros., NBCUniversal and CBS, refused to offer popular shows through Apple at such a discount. They didn’t want to undermine the still-nascent market for digital purchases.
Former Apple Chief Executive Steve Jobs lobbied aggressively a year ago to get the television industry on board, but only Walt Disney Co.’s ABC and News Corp.’s Fox signed up.
Apple said consumers preferred to buy, rather than rent, their TV shows. But the TV networks never embraced the idea, either.
But a major roadblock for Apple along the way has been securing content needed to make an iTV succeed.
They say Apple has been unable to cut deals that would let it offer first-tier TV network programs for an à la carte iTunes TV service. That’s seen as a key element to launching a revolutionary iTV.
Here, it’s unclear whether Apple was negotiating with TV networks or service providers. But whoever it is, they’re not interested. Same as before.
Rogers Communications Inc. and BCE Inc. are in talks with Apple Inc. to become Canadian launch partners for its much-hyped Apple iTV, a product that has the potential to revolutionize TV viewing by turning conventional televisions into gigantic iPads.
Who knows whether anything has come of those negotiations, but the story doesn’t mention any major resistance from TV providers up north, or any deals in place.
While Apple harbors big TV ambitions, it’s having a tough time getting media companies to play along.
Apple is pushing ahead with plans to launch a streaming TV service by Christmas — despite making little headway in its negotiations with content providers, The Post has learned.
A streaming TV service with no content? Where do I sign up?
Moonves told a conference audience that he met with Jobs, the late Apple CEO, and heard a pitch for what was billed as a subscription content service, but ultimately he said he wasn’t interested in providing CBS shows or films to the venture.
Moonves didn’t want to mess with CBS’ existing revenue streams, of course.
The possibility of Apple negotiating with cable companies raises all sorts of interesting questions. I could write whole new blog posts, filled with speculation about how the whole thing might go down, what the technology could be like, and what it means for rivals like Microsoft and its Xbox 360.
All of that seems pointless, however, without a sense that a deal is anywhere close to reality. Right now, Apple’s in the same place it’s always been–at arm’s length from a business that sees Apple as a threat.