Apple (AAPL) To Now Offer TV Subscriptions?

As consumers continue to turn to the Internet for digital copies of movies and television shows, Apple Inc. (NASDAQ: AAPL) is now getting hints of support from some big names to offer over the Web TV subscriptions, according to a report in the Wall Street Journal.

CBS Corp. (NYSE: CBS) and Walt Disney Co.(NYSE: DIS) are rumored to have interest in bringing content to Apple’s potential service. Apple is pushing hard to get the licensing deals hammered out to launch sometime in 2010. It is not certain if any of the networks have signed on yet.

The move is part of Apple’s plans to overhaul its iTunes store, which currently offers downloadable music, movies and applications for gadgets like computers, iPhones and iPods. The TV subscription service would be a new way for Apple to manage how it offers individual shows over the Web.

If Apple can gain enough agreements from networks, it could revolutionize how TV is made available to the public. This could also be another incentive for the soon to be released Apple tablet device, which is rumored to be a 10-inch version of the iPod Touch, an is set to be released by March 2010.

In this scenario consumers could be able access television channels on the go from anywhere on the tablet device, iPhone, iPod or computer.

This all sounds good in theory; however Apple will need to gain licensing deals from a lot more than just CBS and Disney if this is going to work. Consumers do not take kindly to not having access to all of the channels out there, and are unlikely to add another monthly bill for a service that does not meet all their entertainment needs.

On major roadblock in the success of an Apple TV service could be the pending takeover of NBC Universal by Comcast Corp. (NASDAQ: CMCSA). It is doubtful that Comcast is going to allow its content to be turned over to a company that could potentially take market share from its cable service. Without the support from Comcast the Apple TV service could be doomed for failure before it launches.

Consumers are always looking for more ways to access their media through various outlets; however a service like this from a company that already holds licensing deals could hold more water.

Apple has been called crazy before when it has launched new ideas in the past, but the company now has a stranglehold on the online music industry and an ever-growing presence in the smartphone market, so just maybe Apple will change the way people view TV as well.

Shares of Apple are at $198.50 before the market opens on Tuesday.

You May Also Be Interested In

• Seaport Global Securities Starts ADI Global Distribution (ADIG) at Buy
• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• Raymond James Starts SpyGlass Pharma (SGP) at Outperform