We have been hearing for the longest time that Apple is going to launch a standalone online TV streaming service at some point in the future. A few months ago it was reported that the service had been delayed because the company was not able to agree to terms with content providers who actually own the channels that Apple wants on its service. A new report today suggests that Apple “alienated” content providers by making very low offers that were not acceptable to them, hence the impasse.
The Wall Street Journal reports that Apple made very low offers to content partners, even to Disney with which it has a very close relationship, which left them feeling alienated and they did not agree with Apple’s terms. Disney was reportedly very eager to sign up for Apple’s TV streaming service right up till the moment they found the terms that Apple was offering.
One big issue is said to be Apple’s demand to fix monthly rates per viewer for several years. It would have been a major departure from the way they normally operate and generate profits for TV networks. Apple’s senior vice president of Internet Software and Services Eddy Cue is believed to have handled the negotiations from Cupertino’s end.
As a result of this, the company’s negotiations with major providers including Disney, 21st Century Fox and CBS fell through. It’s unclear at this point in time whether Apple is willing to give up some of its tougher conditions or if it has given up on the idea of a streaming TV service altogether.
The company was rumored to be developing a standalone TV streaming service which would cost $30 per month and provide access to live channels as well as an on-demand content library.
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