Apple's much-hinted-at subscription TV service may become a reality before the end of the year.
The
iPhone maker is in talks with TV programmers to offer a Web-based
subscription TV service that would launch in September, the Wall Street Journal
reported Monday, citing unidentified sources. The service would offer
programming from about 25 channels, including major networks ABC, CBS
and Fox, that would be available on all devices running Apple's iOS
operating system, including the Apple TV, according to the report. (Disclosure: CBS is the parent company of CNET.)
The service, which is expected to be announced in June, would deliver programming across the Internet, like Dish's Sling TV product and Sony's upcoming service.
The report did not reveal an expected subscription cost for the service
but did note that some media executives pegged Apple's service at about
$30 to $40 a month. Dish's Sling TV, meanwhile, is a $20 per month live
TV package with 12 channels, including ESPN, TNT, CNN, HGTV and the
Disney Channel. (Only US details have emerged at the moment.)
Apple did not respond to a request for comment.
Apple
has hinted for quite some time that it's working on a more complete,
over-the-top video streaming service. However, there have been no signs
such a product is close to ready, which largely has been attributed to
difficulties securing content deals at reasonable rates.
"TV is a hard problem to solve," Eddy Cue, Apple senior vice president of Internet software and services, said in May.
"One of the problems you have with a TV is you have a disparate system
with a bunch of providers. There's no standards. There's a lot of rights
issues."
Last week, Apple scored a deal with one notable content provider: HBO Now. Starting in April, users of the iPhone, iPad
and Apple TV will be able to subscribe to the new standalone streaming
service for $15 a month. The arrangement is a three-month exclusive
among "new digital distributors," giving Apple a leg up on the likes of
Roku and Google's Chromecast. (HBO Go is also now coming to a traditional cable provider, Cablevision, in a deal announced Monday.)
The Wall Street Journal's report appears to bolster an article by Recode last
month that Apple was in early talks with programmers to offer a
Web-based subscription service. Programmers had been shown demos of how
the service might work, but timing and pricing were still unknown.
Not
all the major networks are part of the picture, the Journal said.
NBCUniversal, the owner of NBC, is said to not be included in the talks
due to a conflict Apple has with Comcast, the parent company of
NBCUniversal. The two companies were reportedly in talks last year to
offer streaming TV service that would tap Comcast's broadband expertise,
but those discussions were hampered by Apple reaching the conclusion
that Comcast was stalling while developing its own set-top box, the
Journal reported.