As reported by The Wall Street Journal Apple’s plans for the new Apple TV has been scaled down compared to what it previously intended.
What originally started as obtaining content right for an ambitious internet enabled TV box is now set in quite different direction.
In the current discussions, which involve at least two big media companies, Apple envisages working with cable companies, rather than competing against them, the people said. For programming, it would rely on cable providers to acquire programming rights from media companies, rather than acquire them on its own, the people said. Apple might consider seeking some rights directly in the future, one of the people said.
The company has been negotiating with Disney, CBS and other similar companies to offer the networks’ content directly to Apple customers over the Internet. This would cut out cable and satellite providers. Negotiations however didn’t bring the results since companies feared that any potential deal with Apple could damage their revenue streams. Apple also hoped to blur the line between live and on-demand TV allowing users to watch any show at any time via iCloud as well as being able to skip commercials. In addition, Apple explored the possibility of paying media companies more for ad-free TV.
Failing the negotiations led to abandoning those ideas. Now, Apple is asking content providers for the last five episodes of any show which is considered a standard for TV show streaming services.
Apple’s latest approach is far less ambitious. Instead of asking for full current seasons of shows, it is asking programmers for just the most recent five episodes of current-season shows—the standard for video-on-demand services in the TV industry, a person familiar with the matter said. Apple is also proposing to disable fast-forwarding on shows for three days after they air, which would protect TV channels.
The report also suggests that it is not yet known whether Apple will sell its own box or allow cable distributors to lease boxes to customers when the company is able to establish a deal for a television service.
The reveal of new Apple TV box is rumored to be in April and is rumored to have both application as well as game support, but will it also offer new television-related content it is not clear.
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