Mikey Campbell
A report on Wednesday claims negotiations over a rumored Apple-branded over-the-top TV service recently escalated, with Disney now pushing for that a bulk of its channels be offered as part of the deal.
According to sources with knowledge of the ongoing talks, Disney is angling for a larger presence on Apple's upcoming Internet TV service, including spin-offs to ESPN and the Disney Channel, reports The Street.
"Disney has made it clear that it wants to drive the strongest deal it can get," the unnamed source said.
With channels like ABC Family and those tailored to younger viewers who are perhaps most likely to invest in over-the-top services, Disney brings substantial bargaining power to the table. Apple agrees and considers these channels indispensable in wooing cord cutters away from cable and satellite options, one source said.
Another key element, however, is pricing. Apple is reportedly looking to offer subscribers a competitive content package at a reasonable price, but accepting every channel Disney is proposing could result in unnecessary price tag bloat. According to rumors, Apple wants to sell a "skinny" bundle of core channels from providers Disney, CBS, 21st Century Fox and others.
Previous reports said Apple is planning to launch its branded Internet TV offering later this year with subscriptions coming in at between $30 to $40 per month. Rumored to debut alongside the subscription service is a new Apple TV set-top streamer. Not much is known about the hardware, but recent rumors suggest the device will forego 4K video playback.
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23 Comments
if Apple wants to disrupt then the pricing will need to be disruptive as well - as was the case with music on iTunes. all the pricing and bundling talk in these articles is, I hope, wrong. As that is just more of the old. single channels priced in tiers- $1 $2 $5 would change everything. $40 for a bunch of crap you don't want. not so much. I might be in the rare few but HBO for $15.. Erm I'll still just buy GoT on iTunes- of course I live in AU so we don't get the choice. nor are we likely to for years or until Murdoch goes broke
if Apple wants to disrupt then the pricing will need to be disruptive as well - as was the case with music on iTunes.
all the pricing and bundling talk in these articles is, I hope, wrong. As that is just more of the old.
single channels priced in tiers- $1 $2 $5 would change everything.
$40 for a bunch of crap you don't want. not so much.
I might be in the rare few but HBO for $15.. Erm I'll still just buy GoT on iTunes- of course I live in AU so we don't get the choice. nor are we likely to for years or until Murdoch goes broke
I agree. They can't just repackage cable as is and expect anyone to care. I don't want to buy 15 channels to get the one I want. That's what's wrong with cable.
Apple certainly wouldn't need to be "pressured" to carry more Disney content. They'd love to take anything and everything Disney gives them.
Design-your-own bundles would be the ideal here.
ABC "Family"...lol
I'll still take the Apple service over the local cable provider even if the price is the same.....because you know, these cable providers SUCK....especially Comcast. I can also watch live TV on my iPhone from anywhere. This is actually the biggest reason I'll switch.