Apple wants networks to cover streaming costs for its Web TV offering, report says

By Trevor Mogg April 2, 2015

apple tv — ymgerman/Shutterstock

Apple is reportedly gearing up to launch a streaming TV service in the fall, though between now and then it looks like it still has a few hurdles to clear in order to make it happen.

Besides working to secure deals with TV networks to bring the all-important content to its proposed service, Apple is also asking that the very same companies take care of the streaming infrastructure, and associated costs, related to its Web-based video service, Re/code reported Wednesday.

While Apple’s request may not be so unusual – after all, streams for Apple TV apps are currently managed by the providers via delivery networks such as EdgeCast – the fact that the Cupertino company’s expected service is likely to operate on a much grander scale, leading to higher costs and greater pressure on infrastructure, “has given executives pause,” insiders told Re/code.

The issue is apparently “one of many unresolved questions” Apple is currently tackling in connection with its streaming service, which, if true, suggests the company will do well to have it up and running in five months’ time.

Apple is thought to be planning an initial service comprising around 25 channels from high-profile networks, among them ABC, CBS, and Fox, while ESPN and FX could also be included. Recent reports suggest the tech giant is looking to charge around $30 to $40 a month for the service, more than the similar $20-a-month Sling TV service from Dish Network, though slightly cheaper than Sony’s recently launched PlayStation Vue service, which starts at around $50 a month for 50 channels.

Subscribers to Apple’s expected service will be able to watch the streamed content on iPhones, iPads, iPod Touches, and Apple TV set-top boxes.

Reports suggest the company could make an announcement about its offering at its WWDC event in San Francisco in June, though if it feels there’s no chance of a September launch, we might not hear anything till later in the year.

Editors' Recommendations

Topics

Contributing Editor

Not so many moons ago, Trevor moved from one tea-loving island nation that drives on the left (Britain) to another (Japan)…

Audio / Video

Apple is reportedly developing a TV box with a smart speaker and camera

Apple TV 4K

Apple's next Apple TV might not look much like the existing models if a new report from Bloomberg is accurate. The publication says that Apple is working on a new device that will combine the functionality of a streaming media device and a smart speaker. It will also be equipped with a webcam.
The company is working on a product that would combine an Apple TV set-top box with a HomePod speaker and include a camera for videoconferencing through a connected TV and other smart-home functions, according to people familiar with the matter, who asked not to be identified discussing internal matters. -- Bloomberg
Such a device wouldn't be the first to combine streaming media functions with a smart speaker -- Amazon's Fire TV Cube already does this, letting users control their entire home theater system using hands-free voice commands. However, no company so far has integrated a webcam into such a device.

If Apple is indeed working on such a gadget, it could end up resembling the Facebook Portal or the Mecool Now, both of which are designed to perch on top of a TV, where the integrated webcam has the best view of the room.

Audio / Video

Pray for Apple TV: Is this the end of the line for Apple’s streaming box?

apple tv 4k 32gb 64gb deal bh photo video summer sale review wide remote 768x479 c

Apple's "hobby," the Apple TV streaming media set-top box, is sitting at just 2% of the global streaming media device market, something that should be sending shockwaves through Apple's senior management team. And that number doesn't take into account the fact that Google just launched its incredibly affordable $50 Chromecast with Google TV, a streaming media device that can do almost everything an Apple TV can do, at a fraction of the price.

At the same time as competitors like Google, Roku, and Amazon are increasing the pressure on Apple TV with ever-more capable and inexpensive add-on devices, smart TVs are eroding Apple's presence from the other side of the market by offering vastly better built-in operating systems like Android TV (which no longer sucks) and Roku OS.

Audio / Video

Apple TV+ could soon offer bonus AR content to boost subscriptions

Apple’s streaming service, TV+ hasn’t performed as well as the company had hoped, and it's now leaving no stone unturned to lure more subscribers. For its next trick, Bloomberg reports, Apple could bring interactive, augmented reality content for its original TV shows.

Apple is reportedly developing a new feature for TV+ that will let you superimpose characters or objects from select shows into your surroundings through your iPhone or iPad camera. For instance, while watching the show, For All Mankind, Apple might offer an option to project a virtual lunar rover in front of you via augmented reality.