Roger Fingas
Taking an alternate approach to entering pay TV, Apple is reportedly proposing a bundle of three "premium" channels — namely HBO, Showtime, and Starz.
Although no deal is yet in place Apple has approached the networks about the idea, Recode said on Sunday. The company has so far been stymied trying to launching a streaming TV service, allegedly because of hardline demands that most if not all content providers were unwilling to accept — even long-time partner Disney.
Recode suggested that Apple could deliver a bundle as platform exclusive, available via iOS and the Apple TV.
HBO, Showtime, and Starz all sell subscriptions through their apps, at costs of $14.99, $10.99, and $8.99, respectively. Presumably a bundle would come at a discount, but no word on pricing has emerged.
Such a deal could upset other TV providers, which typically only offer bundles of basic channels, making premium ones a high-cost extra. Even internet-only platforms like Sony's PlayStation Vue have adopted this model.
At the same time the digital TV market is rapidly evolving, and the value of luring in cord-cutters could outweigh any risk in alienating providers. Indeed networks may have long since crossed that threshold by offering standalone internet plans.
An Apple bundle could theoretically be announced alongside a fifth-generation Apple TV, rumored for launch later this year with minor upgrades like 4K support.
Andrew O'Hara
Malcolm Owen
Wesley Hilliard
William Gallagher
Christine McKee
37 Comments
How about the Discovery Suite of channels?
Hope, Apple can come up with trend setter, disruptive streaming offering. Unless customers can select/add single channels from the traditional TV bundles, Apple's premium service may not be much different than the rest of the streaming services.
We were pretty early "cord-cutters." We got rid of cable 10 or more years ago. Got rid of the phone company too. (Vonage, then Ooma, now just cell) Early on we just bought DVDs and then got Netflix and Amazon Prime, and sometimes things like Drama Fever. Lots of foreign shows on Youtube (we watch Korean, Japanese, and Russian shows mostly). I don't know about most people, but I'll be kind of surprised if these "channel" bundles are really what people want.
I would like to watch Chopped and Cutthroat Kitchen but I don't really want the Food Network. There's something I want to watch on the History channel but I don't care about the rest. I'd like to just pick what I want to watch and watch that. I don't care about any channels. Shouldn't the best experience be just watching what you want? Why should I care about a channel?
So the price for those three is equvelant to 3/4 of my cable price which includes those and many other channels. I assume the streaming options give you back catalogues as well as other advantages such as the option to wire content wherever / whenever, and I also realize that streaming is the future, but pricing is a real issue. One of the reasons for cutting the chord was to get away from, 'bundling', but it looks like bunbling is here to stay. I hope Apple will be successful and get the ball rolling.
There is a limited number of movies/shows that you can watch in a month. The most cost effective way is to rotate between the services. I.e. HBO then Showtime, Stars, HBO, etc.
It will cost you a bit over $10 / month...
Apple should set up this rotation for you. I would piss off the Studios, but who cares. They are getting paid for their content.
That's a way Apple can add value and differentiate.