AppleInsider Staff
The recent launch of Apple Music — Â while important to the future development of iTunes — is also thought to be part of a larger effort to push consumers toward Apple's long-rumored web television service by softening the ground for monthly subscriptions.
Apple could be counting on its new streaming service as a way to kickstart the eventual television offering because the second sale is often easier than the first, according to The Information's Jessica Lessin. She likened the Apple Music customer base to Netflix's early DVD subscribers and Amazon's Prime users in that regard.
While Apple Music already has a substantial 10 million users, Lessin said that some in the industry believe Apple may need to double or triple that number in order to make its video effort viable.
Apple is also said to be considering a tiered video service, in which a subscription would grant access to only a portion of the video library, while the rest would be sold or rented a la carte. As noted by Lessin, this is much the same way that Amazon's Prime Video offering works.
Irrespective of the service's design, ESPN is likely to come along for the ride. Late Apple CEO Steve Jobs is said to have been "adamant" that ESPN be included in any such proposal, and the close relationship between Apple and Disney — Â ESPN's corporate parent — Â would seem to virtually guarantee a deal.
Apple could unveil its new video service as soon as next week, with the company expected to show off a new fourth-generation Apple TV on Sept. 9. AppleInsider will be on hand and will bring live coverage from the event.
Malcolm Owen
Mike Wuerthele and Malcolm Owen
William Gallagher
Christine McKee
Stephen Silver
Charles Martin
24 Comments
I see no connection at all, it's purely coincidental that both are subscriptions. Just an excuse for Jessica Lessin to write an article. She's projecting those connections herself.
WTF. The largest TV provider Comcast only has 22 million subs. Time Warner only has 11 million subs.
So Apple needs 30 million to be viable? GTFO.
You can make the argument that all cable companies are the same so you should add the numbers. They sell the same product. They take a feed of the local CBS or whoever affiliate and they put it on a cable line. The total number of pay TV subscriptions (so satellite+cable+fiber) in the US is about 100 Million.
The local CBS affiliate works as a CBS "franchise" in a way. They take the nationwide CBS feed and slap ads and a local news program on it.
If Apple is going to replace this system, then they need to bring in enough revenue to replace the fees CBS gets from the current model. Once local affiliates and cable companies see themselves being replaced, they're not going to want to pay the networks the same amount anymore.
[quote name="sog35" url="/t/187992/apple-music-seen-as-gateway-for-streaming-tv-service-may-need-30m-subscribers-to-succeed#post_2769798"] WTF. The largest TV provider Comcast only has 22 million subs. Time Warner only has 11 million subs. So Apple needs 30 million to be viable? GTFO. [/quote] By declaring such a high number... it's easy for the pundits to call it a "flop" And talk of an Apple "flop" gets pageviews! :D I'd love to see a study comparing blog ad revenue with Apple news and without.
i'm firmly in the camp of "i am sick of monthly subscriptions"
i feel nickle & dimed, and would much rather pay per consumption of individual items.
the monthly fees are what led me to ditch cable in 2006 when ATSC rolled through Philadelphia.
So are you telling me Comcast with their 22 million subscribers is not a viable company?
So Dish with its 12 million isn't viable?
Comcast, Dish, ect rely 99% on TV to make profits. Apple can break even on TV and still it would be a big plus if it strengthens the ecosystem.
Its just total bullshit that these people expect Apple to be the 1# TV provider from the get go and if not they are a failure.
No you missed the point. The current distribution model, customers pay for broadcast TV from a pay TV provider, and that pay TV provider pays a local affiliate (who also sells ads), who then pays CBS, has 100 million subscribers.
If you want to transition to a on-demand streaming, Hulu-like service and cut out the cable companies and local affiliates, you have to bring in enough subscribers to preempt the existing 100 million strong model.
Otherwise, the networks aren't going to give up money from their 100 million customers, to gain 2 million Apple TV users. Those Apple TV users have to bring in enough revenue to make up for the loss, but obviously, people aren't going to pay 50x more than cable.