Adding to rumors of Apple's supposed set-top cable box plans, a report on Monday claims the company is in the thick of talks with media executives over a "premium" level of the alleged service that would allow users to skip ads entirely.
Citing people familiar with the ongoing discussions, The Wall Street Journal's Jessica Lessin reports that Apple is pitching a system that would have it pay media companies for the lost revenue every time a viewer skips a commercial.
According to the report, Apple recently informed networks about the "premium" version of the as-yet-unannounced service, which would theoretically have users of the proposed service pay Apple for the ability to skip ads.
Lessin points out that, while the system has yet to be detailed, similar offerings found heavy resistance from broadcasters. For example, Dish Network launched an ad-skipping technology in 2012, and was subsequently sued for its efforts.
Apple is already seeing resistance from cable providers over its streaming services. When HBO launched the HBO Go app for Apple TV, some cable and satellite companies pushed back by refusing to authenticate the app for streaming.
With the advent of the DVR, however, an increasing amount of America's television-watching public are fast-forwarding through commercials. This could give Apple some leverage in negotiations, though details regarding the talks are few and far between.
Rumors of an Apple-branded set-top cable box have been floating around the Web for nearly one year, with initial reports of the company's alleged plans coming in August 2012. Unlike DVRs, which store content on-site, Apple's rumored system would be cloud-based, meaning enhanced viewing flexibility and data handling.
Fanning the flames of an Apple partnership with at least one cable company, currently thought to be Time Warner, both CEO Tim Cook and SVP of Internet Software and Services Eddy Cue attended this year's Sun Valley conference and met with a number of media firms. The event, hosted by New York-based investment bank Allen & Co., brings together moguls from the media and tech industries for four days of lectures, discussions, and networking.
When reporters at Sun Valley asked Cue about possible discussions with cable providers, the Apple executive said, âThere are cable companies here?â
67 Comments
Commercials pay for the programming. If you don't want to sit through a commercial, having the option to pay to skip it makes complete sense. TV companies should love this, as they still get their revenue stream. Advertisers should love this because they aren't paying for an ad that is skipped over. Users will whine about this because they want everything for free and think paying for their entertainment is absurd.
Commercials pay for the programming. If you don't want to sit through a commercial, having the option to pay to skip it makes complete sense.
Then why am I being charged for cable, Hulu Plus or AppleTV content if the commercials are paying for the content?
Users will whine about this because they want everything for free and think paying for their entertainment is absurd.
Or they will just find it absurd to be double-charged just to not see commercials? For example, I pay for Hulu Plus and yet still have to watch commercials. Where is the money that I and others are paying going to if not to pay for the programming?
I would like to be able to buy seasons of specific shows and / or events rather than an entire channel assuming the cost was reasonable.
It wasn't too many years ago that a standard commercial break was 2 min, 2 sec long. Today, there are often 4 and 5 minute commercial breaks. Hulu Plus was great when their commercials were just a quick 15 second interruption, but now you get a minute or even two on popular shows on Hulu plus and thanks to technology, you CAN'T skip the commercials on Hulu. I'm paying $8 a month for Hulu Plus and honestly, the no-skip commercials are starting to grate on me. Yet, HBO has never had commercials and they seem to do just fine. They have enough cash on hand to create The Sopranos, and Game of Thrones, etc.
I don't mind watching commercials if the TV is free. I don't mind paying a cable company $60+/mo. if there are no commercials.
I do mind paying $60+/mo. to my cable company AND having to sit through inane commercials! :)
I cut my cable 5 years ago! :)