Recently the rumor mill seems to be concerned with a potential Apple web TV streaming service once again. We first heard whispers about such a service in the pipeline at Cupertino last year. Apple itself has neither confirmed nor denied rumors that it could at some point offer an internet TV streaming service. Recent reports claim this service will be launched in fall 2015. A report published today says Apple’s service might actually cost below $40 per month.
On Monday The Wall Street Journal reported that Apple’s internet TV streaming service will be launched in September and that it will cost around $40 per month.
At this price point the service will be more expensive than Sling TV, Dish’s over-the-top streaming solution, which costs $20 per month and offers access to a decent number of channels including ESPN.
Analyst Rod Hall of J.P. Morgan today sent out a note to investors and said that the $40 per month price point for Apple’s TV service seems unlikely. He says that the incremental cost of cable service from providers like Comcast costs less than $40 per month and that includes basic internet as well.
Since the entire idea behind such a service is to get people to “cut the cord” and hop on to a cheaper internet TV streaming service, if Apple’s service costs more than the incremental cost of a conventional cable subscription, there will be little incentive to make the switch.
The logic makes sense though one must keep in mind that Apple is expected to offer channels that have up till now kept away from online TV streaming services, like CBS, ABC and Fox, even Discovery and Viacom are said to be looking for a spot.
That will play a huge part in determining the price point so that not only can Apple pay these networks but also be able to turn a profit for itself.