Apple (AAPL) Snubbed By Media Companies in Streaming Content Talks
Tweet
Share
E-mail
Get Alerts AAPL Hot Sheet
Price: $312.02 +0.44%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Join SI Premium – FREE
What's the secret to Apple's (Nasdaq: AAPL) success? Initial thoughts would be "solid user experience," but that's only half the story...
The other half is pricing.
According to the NY Post Thursday morning, Apple is at it again for an anticipated streaming TV service, expected to launch for the holiday 2012.
Despite management's intentions and customer base, Apple is hitting a bit of a snag on securing content. The company's approach has been "pay next to nothing" for content and media companies are not playing along. Apple's stance has been, "we decide the price, we decide what content," according to the Post's source.
Apple has been tinkering with the idea of offering channels as apps for its devices, which actually sounds like a brilliant idea (again). These could likely transfer easily to its Apple TV set-top-box.
Apple's iTunes service currently allows for the rental and download of shows, but Apple would like to break into the streaming content market as well. Apple tried in 2009, reports the Post, but its model of sharing ad revs rather than paying a distribution fee didn't sit well with providers. Netflix (Nasdaq: NFLX), the de facto streaming content company, pays a distribution fee.
Apple has also aimed to work with cable companies about a sleeker interface with its Apple TV device, but companies like Comcast (Nasdaq: CMCSA), Time Warner (NYSE: TWC), and others all but slammed the door in Apple's face, preferring to keep the media and tech giant at a safe distance. Instead, Comcast, et al, at releasing their own "Apple TV"-like devices, forced cable customers to not only keep the service, but in many cases pay more for it.
Despite the setbacks, Apple is continuing on. The company may look to strike deals with Verizon (NYSE: VZ) and AT&T (NYSE: T) -- two companies which already enjoy sales tied to Apples iPhone. Maybe that fact alone will give Apple more leverage despite Verizon offering FiOS and AT&T having U-Verse home entertainment packages.
The other half is pricing.
According to the NY Post Thursday morning, Apple is at it again for an anticipated streaming TV service, expected to launch for the holiday 2012.
Despite management's intentions and customer base, Apple is hitting a bit of a snag on securing content. The company's approach has been "pay next to nothing" for content and media companies are not playing along. Apple's stance has been, "we decide the price, we decide what content," according to the Post's source.
Apple has been tinkering with the idea of offering channels as apps for its devices, which actually sounds like a brilliant idea (again). These could likely transfer easily to its Apple TV set-top-box.
Apple's iTunes service currently allows for the rental and download of shows, but Apple would like to break into the streaming content market as well. Apple tried in 2009, reports the Post, but its model of sharing ad revs rather than paying a distribution fee didn't sit well with providers. Netflix (Nasdaq: NFLX), the de facto streaming content company, pays a distribution fee.
Apple has also aimed to work with cable companies about a sleeker interface with its Apple TV device, but companies like Comcast (Nasdaq: CMCSA), Time Warner (NYSE: TWC), and others all but slammed the door in Apple's face, preferring to keep the media and tech giant at a safe distance. Instead, Comcast, et al, at releasing their own "Apple TV"-like devices, forced cable customers to not only keep the service, but in many cases pay more for it.
Despite the setbacks, Apple is continuing on. The company may look to strike deals with Verizon (NYSE: VZ) and AT&T (NYSE: T) -- two companies which already enjoy sales tied to Apples iPhone. Maybe that fact alone will give Apple more leverage despite Verizon offering FiOS and AT&T having U-Verse home entertainment packages.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Lyft to acquire Serveo's bikeshare business in Spain
- Keysight launches description-based UI test tool for Eggplant
- Supermicro launches Kubernetes edge AI appliances with Red Hat, Everpure
Create E-mail Alert Related Categories
Corporate News, Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
